Real Estate Investment 101: Getting Started

Interesting Things You May Not Know About Luxury Homes

Larger than most homes, decked out in finer amenities, and usually offering impressive curb appeal, residential luxury homes are a unique sect of the real estate market. If you have a luxury home you intend to sell, there are a few things that you should know before you get started with an agent.

How "luxury" is defined varies by location. 

The home market is different no matter where you go, especially when it comes to what could be deemed as luxury and what would not. For example, a home in Beverly Hills may not be luxury if it is situated in a high-end neighborhood where the rest of the homes are more sizable, boast more amenities, and have more value. But that home may be easily considered luxury if it were placed in the middle of Des Moines, Iowa where the other houses aren't all that large and boast a pretty basic setup. It is for this reason that it is best to get the input from a real estate agent before you try to sell what you believe to be a luxury home on your own.

The average luxury home will stay on the market longer. 

If you are planning to sell a luxury home, it is best if you go into the process with reasonable expectations. These are not typically the types of homes that go on the market and are sold within a few weeks. It is not uncommon for a luxury listing to sit idle for a few months or more. The market for these houses is smaller, so it can naturally take a little while longer for the right prospect to come along. In 2017, luxury homes stayed on the market an average of 116 days before they sold.

Luxury home buyers are probably going to expect negotiation. 

It is best to stick a good price on your luxury home that is in line with market values of similar homes. However, make sure you do leave a little wiggle room in the price. Buyers tend to expect sellers to have some room for negotiation in the price of a luxury home. You are more likely to make a sale if buyers feel like they are getting the home at a good price. Turning down every offer because you have priced no lower than you are willing to take is a good way to miss an opportunity.

For help with selling a luxury residential home, contact a local real estate agent today.