Pricing Luxury Lake Tahoe real estate is an important aspect of listing, but how you come up with the magic number is not an exact science. When it comes to Lake Tahoe homes for sale that are not considered luxury, you look at the comparable properties nearby that sold in the last 90 days. While you use this model for Luxury Lake Tahoe real estate as well, the method is a little different. After all, it can be hard to compare a luxury home that features 16,000 SqFt with a bowling alley and indoor swimming pool to a home down the street that features 20,000 SqFt and amenities like a 10 car garage and theatre. While they are both considered to offer certain lifestyle amenities that come with lavish living, they aren’t perfectly comparable like the average single-family home. So how do you come up with the appropriate number? First and foremost, work with a Lake Tahoe Luxury Realtor who specializes in this type of lifestyle and has experience in marketing higher priced homes. They will be familiar with the various neighborhoods, the recent solds and what the Lake Tahoe Luxury Real Estate Market looks like. In the meantime, here are a few popular pricing strategies when it comes to listing luxury.
OVERPRICING LUXURY LAKE TAHOE REAL ESTATE
In both the average single-family home and the luxury market, there are a lot of real estate professionals who will price higher than market value with the intention of negotiating down towards what they really want/what the home is actually worth. On one hand, when overpricing a home, you miss out on qualified buyers. On the other, when it comes to Lake Tahoe Luxury real estate, there is usually a little wiggle room with the price. So while overpricing for the market is never recommended, every home and every situation is different. If this is a strategy you are thinking of, work very closely with your Lake Tahoe Realtor on whether this is a good fit for you.
UNDERPRICING A LUXURY LAKE TAHOE REAL ESTATE
Underpricing 5% less than market value is a great tactic for getting a lot of interest and traction from buyers. People LOVE a good deal, and luxury is no exception. What buyer doesn’t want to get “the most bang for their buck”? Usually when a seller lists below market value, they are doing it with the intention of attracting multiple offers and closing over ask. While this definitely works with the average single family home, the luxury real estate market works a little differently. This tactic is best done in a seller’s market and once again, it depends on the home. Work closely with your Luxury Realtor in Lake Tahoe on this one.
PROPER LUXURY HOME PRICING
Pricing based on true market value is absolutely the best way to list. Letting your Luxury Realtor in Lake Tahoe evaluate a home based on condition, amenities, location and size and then come up with a competitive price is the best way to enter the market. Sometimes a luxury agent will have to go a little farther back than the above mentioned 90 days to obtain accurate pricing. If a home isn’t getting a lot of interest from buyers after a month or two, you can adjust the price. However, most luxury buyers know what type of pricing to expect in certain neighborhoods. Pricing luxurious homes is very location dependent and pricing anything but market value comes with pros and cons. Work with a qualified Luxury Realtor in Lake Tahoe so you can feel confident that you are being represented at the right price point with a variety of marketing tactics.