Pricing in the Spring MarketMay 7, 2016
Given the shortage of Boston luxury homes inventory, eager home buyers are sometimes willing to overpay for a property, but only up to a certain price. Therefore, sellers should pay attention very carefully when pricing their home.
Some Boston luxury real estate sellers claim that they know the market better than the real estate specialist who is in and out of properties all day long. Or more recently, sellers tend to rely on what Zillow says when valuing their home. Zillow seems to have become their Boston luxury real estate bible. Keep in mind that Zillow does not have access to the interior of these units on the market, and that the online price is only a guestimate. Owners should rely more on their real estate experts for comparable sales and use online tools as simply a general reference.
Pricing a Boston luxury real estate property, aside from location, involves too many variables. To name a few, there is the level of renovation and date of renovation, accessibility, type of building, occupancy rate, competition in the area at the time of marketing.
Pricing a high end property above where the market is, Sellers run the risk of letting their property sit on the market too long and having to reduce the price if it's priced over where the market sits. In some cases, sellers have been forced to reduce prices below the market, after it doesn’t sell right away. On the other hand, if the property is priced wisely initially, multiple offers could be submitted and the Boston luxury real estate property could sell higher than it should. It is better to be pleasantly surprised than being disappointed by greed and aggressive pricing at the beginning.
No matter how active the Boston luxury homes market, or how limited the inventory is, buyers are very market educated and will not pay beyond what a property is worth. The one caveat is extremely unique listings that are taste specific and the price can’t be justified by the market.