Luxury Homes On Sale For Half Off?
INDUSTRY NEWS, TIPS FOR SELLERS
February 27th, 2010
![santacruz-103[1]](http://movetoredding.com/files/2009/11/santacruz-1031-300x199.jpg)
Example after example can be found nationwide of discounted prices for high-end real estate. Nicholas Cage recently reduced the asking price for his 11,817 square foot English Tudor in ritzy Bel Air from $35 million to $17.5 million. A 21,897 square foot mansion in Greenwich, Conn. with 14 bedrooms, 13.5 bathrooms on 40 acres with a view of Long Island Sound was listed for $125 million two years ago and recently reduced to $60 million. The home of Suzanne Somers and Alan Hamel known as Les Baux de Palm Springs started at $35 million and has reportedly been reduced to $12.9 million- which works out to a 63% price reduction!
What about Redding? I listed the home pictured above in October in Stanford Hills at $995,000. This Street of Dreams showcase home originally sold in 2005 for $1.5 million to a local doctor. He proceeded to add a guest house (pushing the total square footage above 5000), shop and more landscaping investing several hundred thousand more. The property was bought by an out-of-area hospital to facilitate his transfer for more than $900,000 then quickly resold and closed in December for $875,000. Two doors down, a bank foreclosure was just listed this week at $795,000. It is another Street of Dreams home that originally sold for more than $1.6 million.
The bottom line for those with luxury homes is be realistic if you want to sell soon. Fortunately, many of these homes are owned free and clear and the owners can wait out the market. If you can’t wait, owners should focus on prices of recent closed sales, not list prices of comparable homes. In fact, to avoid chasing the market downward, smart sellers will pinpoint the fair market value then set the asking price under that to capture a sale before the market values slip even further.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL LIVING REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER IN REDDING
MORE THAN A QUARTER CENTURY LOCAL SALES EXPERIENCE
