From a strategic standpoint, at least, the new price has some area brokers scratching their heads. “We don’t see a lot of high-end luxury developers raising their prices,” said Connie Blankenship, the director of luxury sales at Douglas Elliman Real Estate in Los Angeles. “If anything, they do it the other way, starting higher with the price they would love to get, and then if they’re not getting the activity they need, lowering the price.”
One explanation could be that the elevated price is effectively a marketing move. “It seems the higher you price your house, the more attention it gets,” Blankenship said.
Another could simply be that sellers have unreasonable expectations based on other, similarly aspirational homes currently on the market. “What also happens is that other owners look and say, ‘Well, this person is pricing their house high, so mine also must be worth that amount.’ But the problem,” she continued, “is that those houses haven’t actually sold, so they’re not real comparisons.”
As an side, I note that the owner built a 28,000 sq.ft. house on a 1-1/2 acre lot. I bitch about our FAR regulations all the time, but .... gee.