Why isn't my luxury home not selling?

Selling a luxury home often takes longer and requires more time and patience. There is a smaller pool of buyers able to purchase the home. What is keeping your home from selling?

1. Price

Because a buyer is wealthy does not mean that price doesn't matter! Your asking price matters. It should be based as much as possible on comparable sales. Wealthy buyers are often MORE aware of pricing, not less. These are savvy buyers who want a fair and balanced transaction.

Price your home correctly, and if you aren't getting activity within the first month be flexible and adjust the price accordingly. Over-pricing your home hoping the "Right Buyer" jumps is a proven strategy for getting a lower price in the end.

2. Neighborhood

Your home may be priced well in comparison to similarly priced property in the area, but is it priced correctly in relation to the homes in your neighborhood? Often a high end home is priced based on the only comparables available. If you have the most luxurious home in your neighborhood it is a disadvantage when it comes to the price/sq. ft. at which you can sell your home. Homes located within a high-end neighborhood are going to sell faster and generally for a better price. Just like most home owners, wealthy buyers want to live in neighborhoods where they are comfortable.

Be realistic with your pricing. You can't demand a price that your neighborhood will not support. Over pricing at the beginning only results in a lower sale price in the end a majority of the time.

3. Special Features

Luxury real estate often includes very specialized features that may not appeal to most buyers. These features may be a draw for some buyers, but elaborate and specialized features are often a negative for many buyers. Buyers may feel that they would need to be removed at an often substantial expense.

Specialized features may include:

Elaborate Water Features
Expansive Pool, Hot Tub, and Sauna Areas (particularly in colder climates)
Courts for Tennis, Handball and Racket Ball
Indoor Basketball Court
Indoor Bowling Alley
Customized Media Rooms
Very High Maintenance Gardens
Very Personalized Decor and Design

Your agent should focus advertising on high-end buyers that show special interest in that particular feature. Today's Internet advertising makes intense ad focus possible. Your pride and joy may be a negative in the end. Be prepared to credit funds towards it's removal as part of a Purchase Agreement.

4. Property Access - Don't Put Up Roadblocks and Expect Showings

Many high-end homes require the listing agent to be present for all showings. No agent will be in business long if they need to focus on only one or two homes. The best agents can't be at every showing without dramatically limiting the number of possible showings.

Luxury home sellers may request showings only during very limited hours, or only when they are out of town. This is a recipe for not selling your home. It shouldn't be surprising that luxury home buyers are very busy as are sellers. If you are serious about selling your home then give them access when they are available, not just when it is convenient for you.

Real estate agents today should verify the other agent's legitimacy prior to showing your luxury home. When possible they should use a showing service, they should call the agent to personally communicate any seller requests, and they should press for feedback after the showing.

5. Average Marketing Program for a Home that IS NOT AVERAGE!

A high end home needs high-end marketing. It should have it's own website, a visual tour that isn't a slide show, and drone photos where legal to highlight the grounds and location. Internet advertising should be very focused to target a small group with your higher end marketing product. Show off your house to the buyers that can afford your home!