Why Luxury Homes Sell Slowly

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luxury home

A reader recently ask me why it takes so much longer for a luxury home to sell, even in a market where homes are selling quickly. The answer is simple but the explanation is much more complex. 

In the current market, in our neck of the woods, a home listed to sell for $200,000 or less would create a feeding frenzy resembling a fattened pig in a piranha pond. Hundreds of inquiries and dozens of offers would be expected. Conversely, something at $1 million or more, regardless of its upgraded doodads and whatnots, would likely get few showings and might not see an offer for months.

Why? There is currently a backlog of pre-qualified entry-level buyers who have been priced out of the market. Affordable homes are just not hanging from the trees.  

At higher prices, there are fewer qualified buyers. When you get near or above seven figures, there are far fewer piranhas in the pond. Buyers who can qualify for luxury homes tend to be in much less of a hurry as well. It’s not uncommon for the process to take months and sometimes more than a year. Luxury buyers are much more demanding, willing to wait for what they want.

Relative to the number of qualified buyers, there are plenty of luxury homes available these days. Unlike the entry market, these buyers can afford to be picky.

If you price a“first-time buyer” home 5 percent over market, you’ll still see some interest. Not so in a high-dollar, luxury home. An error in pricing could result in many days on the market and missing the buying season altogether.

When selling a high-end home, both seller and agent really need to be on their game. Pricing, marketing and the “show-ability” of the home all need to be top-notch. And, you’ll still likely be waiting awhile.


Going Big: 5 Homes With at Least 4 Beds & 3-Car Garages
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Help Save Our Community
Small businesses are the lifeblood of our country and even more so this community. Supporting local businesses during this crisis can help keep our community economically viable. Please strongly consider supporting the businesses below, In&Out Magazine's display advertisers, as well as those in the Classifieds section of the magazine (see the full April 9 issue in PDF form). Many of these businesses have been part of the fabric of this community for two decades, not just serving our professional, service and retail needs but stepping up to support local charities, sports teams and so much more. Tip: If you know you’ll need to schedule a service, consider contacting a local business you trust and paying the standard fee for the deferred service. The links below go to their web sites.

Adult & Pediatric Allergy Associates • 602-242-4592
Anthem Senior Living • 602-909-9550
Appliance Pros • 502-501-5501
Business Network of Anthem • 623-455-9630
Carroll Law Firm • 623-551-9366
Century 21 Real Estate - Jeff Huff • 623-223-1221
Creative Home Enhancements • 623-551-5409
Daisy Dream Homes Real Estate • 623-879-3277
Daisy Mountain Dentistry • 623-551-5250
Desert Foothills Air Conditioning • 480-595-0938
Edward Jones • 623-551-0523
Element Dental Centers • 623-551-5555
Hand & Stone Massage • 623-551-6602
Kendallwood Design • 602-252-3844
Kodiak Roofing • 602-501-7717
Luv My PC • 480-703-6609
Merrill Gardens • 623-201-4881
North Valley Water Solutions • 623-551-0515
Preferred Business of Anthem • 623-551-0523 
Prickett Realty • 623-551-8111
ProSkill Services • 623-551-7473
RE/MAX Professionals - Mike Higgins • 623-640-7502
Rise Above Remodeling • 623-551-2013
Soft Water Plus • 623-551-7383
SonoranScapes Landscaping • 602-842-9948
State Farm Insurance - Justin Simons • 623-551-3700
Storage at Anthem • 623-226-8634
Sunset Cabinets • 623-687-6579
Thompson & McGinnis Attorneys at Law • 602-952-2666
Titan Tree Care • 623-444-8448
Titan Pest Control • 623-879-8700
Wyman Plumbing & Mechanical • 623-551-6688

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Chris Prickett
Former contractor, former home inspector and funny guy, Chris Prickett is owner and designated broker of Prickett Realty. A New Jersey native, Prickett has been a top-producing REALTOR® in North Phoenix over the past decade. He has been a columnist since 2005. Over the Prickett Fence is published weekly by In&Out Publications.
Chris Prickett on Email

Chris Prickett

Former contractor, former home inspector and funny guy, Chris Prickett is owner and designated broker of Prickett Realty. A New Jersey native, Prickett has been a top-producing REALTOR® in North Phoenix over the past decade. He has been a columnist since 2005. Over the Prickett Fence is published weekly by In&Out Publications.

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