Spring sellers display openness to modest price negotiations
The luxury real estate market is undergoing adjustments in pricing expectations and negotiation strategies to align with current market dynamics.
This month, Forbes Global Properties, a prestigious platform for luxury homes and a discerning network of top real estate firms, released their latest Luxury Agent Poll. The survey aimed to understand the flexibility of sellers regarding pricing in the current market. A majority of the domestic experts from Forbes Global Properties, 62%, reported that a negotiability range of just 0-5% below the listed price was deemed acceptable.
In addition to this, agents disclosed that 6% of sellers were unwavering in their asking price, while 18% would entertain offers 5-8% below the asking price, 9% were amenable to 8-10% below the asking price, and 5% would accept bids exceeding 10% less than the asking price.
Terry Sprague, a representative from LUXE in Oregon, observed, "In this climate of increased interest rates, sellers needed to lower their list price expectations by 15 to 20% to attract buyers."
Matt Fitzgerald of Slifer Smith & Frampton in Vail, Colorado, added, "Well-located, modernized properties that are priced in line with current market dynamics continue to draw considerable demand."
The Luxury Agent Poll serves as a monthly extension to Perspectives, a thorough analysis of the international luxury residential market derived directly from more than 13,000 distinguished local agents affiliated with Forbes Global Properties. As the report highlights, a gradual transition towards more practical pricing from the peak of the demand-induced post-pandemic market became a crucial element for successful deals as 2022 unfolded.
This shift in seller expectations and the continued interest in strategically-located and updated properties indicate that the luxury real estate market is adapting to the evolving market conditions. By understanding these trends, both buyers and sellers can make more informed decisions and navigate the market with greater confidence. The Luxury Agent Poll and Perspectives report, drawing on the expertise of local agents in the Forbes Global Properties network, provide invaluable insights into these ongoing developments.
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In conclusion, the luxury real estate market is undergoing adjustments in pricing expectations and negotiation strategies to align with current market dynamics. Sellers are gradually adopting more realistic pricing, while buyers maintain strong interest in well-located and updated properties. The Luxury Agent Poll and Perspectives report offer valuable insights into these market trends, thanks to the expertise of local agents in the Forbes Global Properties network. This article's content and insights are credited to rismedia.com.