While much of the county struggles with a depressing real estate market, Washington State does not, and the Sequim and Port Angeles areas do not. We struggle with a slowing market, but not a crisis market by any measurement.The luxury home market is unique, and especially interesting in this market. In a depressed market, luxury homes typically find their prices slashed by 20%, 30% or more. Take, for example, Burt Reynold's home in Florida (see photo). It is listed for sale at $10.5 million, which is 30% below its original list price.
In a less than vibrant market, luxury homes still hold their value well. When they don't sell within a reasonable period of time, assuming they are priced at fair market value, it is not because of price but because the right buyer has not arrived at this time and place. The single most important factor in selling a luxury home, again assuming fair market value, is connecting with qualified buyers far away. Intelligently connecting with such buyers is a very involved and challenging marketing and CRM (customer relationship management) process, which is why luxury homeowners who decide to go "FSBO" have so little "luck." In fact, an inexperienced real estate agent doesn't bring much more to the table than a FSBO can bring to the table for himself. An experienced professional Realtor takes selling to entirely new levels unknown to the FSBO and new agent. This is all critical in selling luxury homes.
The prices of Sequim and Port Angeles luxury homes certainly do not approach the prices of expensive Florida celebrity homes. A luxury home here can be had for as little as $700,000, more or less. For example, I just sold a luxury home in the Sequim area for $759,000. It's an amazing paradise with 2,300 square feet of the best construction and best money can buy in every feature. The floor plan and architecture offer everything a homeowner wants. It is environmentally friendly ("green"), has a hot tub that is always hot at low cost, has a drop dead water view of the Strait of Juan de Fuca from the living room, and on a clear day you wake up to an extraordinary water view from the master suite. It has a 48 foot long RV barn built to withstand a hurricane, a workshop, an extended double car garage, an small guest house, and 20 acres of pristine wilderness adjacent to a nationally protected park.
This luxury home sold in a slowing market at only 5% less than it's listed price. That is definitely holding its value in any market. Not only did this house sell very near listed price, while this offer was pending, a backup offer appeared for all cash. Amazing! This proves that good buyers are out there, and they are buying. People who have planned to move for a job transition or a retirement do not put their lives on hold just because the real estate market has slowed. In fact, this becomes a grand opportunity for them to purchase their dream home at a reasonable price. Sellers should be reassured that homes are selling, and that buyers will pay fair market value for the home of their dreams.
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