Can’t Sell? Try Asking More

As the luxury housing market shows signs of improvement, some owners who took their homes off the market because they were not selling have decided to re-list them at higher prices. The number of $1 million-plus properties in New York City with asking prices that were boosted over the previous 12 months rose to 436 in August from 266 during the same period in 2010, reports Zillow. The number of such properties climbed to 5 percent of high-end listings in Miami-Fort Lauderdale from 2.3 percent over the same time span. Experts say high-end sellers are feeling more confident these days due to record sales prices paid by affluent overseas buyers, but brokers say pricing at this end of the market is often subjective due to the lack of comparable sales. Moreover, these listings generally take longer to sell; and rarely does hiking the asking price boost the final sales price. “Unless it’s a unique property, it signals to the market the seller is not serious,” says New York-based broker Donna Olshan, who adds that homes whose prices have been increased either languish on the market or see significant price reductions. Still, some believe the strategy can attract international buyers searching for trophy properties; and it could prompt a perception among some buyers of increased demand for the property. | Read More