Price Reductions Can Sell Boston Luxury HomesJune 22, 2013
Pricing a high-end property for sale is a multi-layered subject. There are several factors at play when selecting the most effective asking price for Boston luxury homes. It is not an exact science, but we would like to get as close as possible to pricing it right.
The Boston Condo Pricing Equation
Here is a list of several factors that influence pricing a property to sell quickly:
- Comparative sales in the market reflecting recent months
- Condition of the property - recently renovated, partially or un-renovated
- Outdoor space, number of parking spots
- Square footage
Although these factors are important, they are other things to consider. The strength of the market, shortage of supply and high demand also dictate Boston condo pricing. Lack of inventory puts sellers in the driver seat. In a “hot market”, sellers not only become less and less flexible with their asking prices, but they can also dictate asking price, regardless of comparative sales.
These properties are challenging to sell, since even most desperate buyers are reluctant to spend beyond what’s reasonable. Buyers are becoming more and more market-educated, thanks to the availability of online data and access to information. The Boston luxury homes market is so distinctive, it’s very easy to track down market-specific information.
Then again, there are UNIQUE luxury properties that are truly one of a kind and impossible to price. These unique homes are so above and beyond anything else on the market that it simply takes the right buyer to fall in love with it and set a standard for the highest price per square foot in the area.
However, if you’re a seller and just testing the market, listen to your realtor if they tell you it’s priced too high if the property does not sell in a given timeframe. It’s most likely time to reduce the price. Most sellers will say, “I haven’t had an offer or showing, so why should I reduce? I’m willing to negotiate, but bring me an offer.”
It doesn’t work that way, since most buyers shy away from even looking at a property that is way over priced. They have access to information online with the detail of the property and photos, so they decide not to waste their time and view it UNTIL the price is reduced.
Have questions about pricing your property? Don’t hesitate to contact me.