Psychology Behind Pricing Luxury HomesJune 3, 2017
There’s a simple formula for pricing Boston luxury homes (condos and single family properties). The logic and rationale of pricing is based on supply, demand and comparable sales. Granted there are exceptional cases when it comes down to pricing a very unique and “one-of-a-kind” property. And pricing of such exceptional Boston luxury real estate is fairly arbitrary when there are no comparable sales.
In pricing exceptionally unique Boston luxury homes, sellers should be given an accurate study of the current market so they can work with their agent to determine the sale price. However, too often the seller uses her/his judgment to establish the Boston luxury real estate sale price against all odds. Even more ironic, there are cases that the property has been more days on the market than it should’ve been when the sellers feel they need to raise the price rather than lower it. Fortunately, this doesn’t happen too often.
By raising the price, sellers psychologically feel it will help them get buyers in a higher price range. This is a completely wrong approach; however, sellers make the final decision, in this case, for all the wrong reasons.
Raising the price, NOT reducing it, will make the property even less desirable. As a rule of thumb, unless Boston luxury homes are taken off the market and put back on the market once it can pull a higher price tag, the home will not sell based on a price increase. Always consider the competition at the time of marketing and listen to what buyers are looking for in their next move. Contact me anytime to discuss your current home valuation, since there is certainly a strategy for pricing your home to sell it.