The Difficulty of Pricing High-End Homes
February 20, 2008 by jeffandsteve
Pricing high-end homes (over $2.5 million) is difficult at best, given the variability of the features of each home, buyers’ personal preferences, and subjectivity. Each home is usually unique in characteristics. The exact value to potential buyers of those characteristics is unknown. As a result, only approximations can be used to compare two high-end homes. This is why appraisers consider a 10% range of value to be “accurate” and the closest one can come to divining fair market value.Jeff Stricker
I guess I have trouble understanding a luxury home value. When you put to many upgrades in a median price home you loose when you resell if the current community has not done the same. So why should luxury homes that choose to add everything get any different treatment it should go by comps in area. Thus all luxury homes would tend to be in one area would be where you would expect to find them with comperables.