It is always best to have your home priced correctly the first time. The longer you are on the market for sale the less you will receive. Time is definitely the enemy when talking about real estate. So many home sellers think they can ask a high price for their home and test the market. Although in theory that may sound like a good idea it is the downfall of many home sellers who attempt this strategy.
Don’t think you are alone Sacramento Luxury home sellers… Even the stars are having trouble selling their mega-mansions.
At $10.2 million the former home of Cher has been for sale with no takers after dropping from $14.9 million. This 11, 462 sq. ft. Miami Beach home was last owned by the executive producer of “Dynasty.”
Now, that’s drop in price. Had this home estate been priced at $10.2 million when it first hit the market, more than likely it would have sold.
This pricing technique is referred to in the real estate market as “chasing the market.” It is not the way to sell and results in a much lower price tag once the property is sold.
Dr. Phil and his wife tried to sell their Beverly Hills villa last summer for $16.5 million and dropped the price $2.8 million to $13.8 million for this 11, 036 sq. ft. home since they have already moved into a $29.5 million villa.
Many times it is easier to sell a home after you’ve moved out into your new home. The drawback is that most home buyers will take that into consideration and decide that the seller is at a disadvantage by making two house payments and offer less.
But, at the same time, maybe Dr Phil can take a hit since his TV program remains a hit.
Even Christina Aguilara’s Hollywood Hills stunning home that was listed for $7,955,000 back in April 2008 didn’t sell. Now, her home is back on the real estate market again for $6,250,000.
Lessons to be learned here from some of the high priced real estate on the market. Even the stars are having trouble selling their homes and in this Sacramento Realtor’s opinion have made some pricing mistakes that have cost them time and money.
Chasing the market is never a good idea. So if you are thinking of selling your home be sure and list your luxury home for sale correctly the first time. In the end you will make more rather than less in a longest period of time.
These examples are proof that the home seller does NOT set the price, the home buyer sets the price and by example the home buyers are telling these home sellers that their mega mansions are overpriced.
To take a look at luxury homes for sale in and around the Sacramento area see Sacramento Real Estate Neighborhoods.
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