Is the pricing of Ultra Luxury Properties in Beverly Hills an Art...

By
Real Estate Agent with Berkshire Hathaway HomeServices 01238708
https://activerain.com/droplet/56kg

The pricing of Ultra Luxury Properties in Beverly Hills and surrounding: is it ‘Art’ or is it a ‘Science’?

www.endrebarath.com

Over the years, there have been numerous discussions about the ’Art’ or as some people call it the ‘Science’ of how to price Ultra Luxury Properties. I consider it a combination of Art, Science and Psychology. Clearly all three need to be balanced in achieving the clients wants and needs. This of course must be determined prior to accepting the property for listing and selling it. Sadly, many agents get too excited about being invited to the “dance” aka the opportunity to discuss with the seller the marketing and selling of their property. Hence, they fail to ask the most important questions about the motivation, as well as the goals of the owners. This of course leads to a long and expensive time and effort for the listing agent and a disappointment in not achieving the wants and needs of the sellers, because they failed to focus on what the seller wanted.

 Some Reality Show TV Agents, who due to their position end up getting exposure which is perceived as an “authoritative positions” and then in turn some of the media outlets give them additional exposure, this is just a fact of life. Never the less, just because they are getting exposure of their point of view, it does not necessarily make their observation accurate. It reminds me of Politicians, just because their message received a lot of coverage it does not make their message “right” or “accurate”.

I keep hearing “…they don’t build them like they used to…there is really no way to assess the value, because there are no comps…” I beg to differ.

There are times when the list price is an “ego price”, with that said, I hold the listing agents responsible for not having a “heart to heart” discussion with the sellers.  Amazingly sellers in the Ultra Luxury Market depend on the advice of the Agent, hence we owe it to them as Realtors to give them sage advice.

www.endrebarath.com

To give you an example, there was a parcel of land in Beverly Hills, 90210, which was listed on the market for just barely south of $50 million dollars. For an entire year I saw some aggressive marketing by the listing agent and it did not sell.  Buyers and their agents can figure out what the value truly is and although the property is “very special” if you know what you are doing you can come up with a “sellable list price”.

That said, there is a formula that “The highest price listing” will cause a lot of buzz and short-term attention. Listing agents and sellers like that, because in a short amount of time a lot of eyes around the Globe get to see the property and if there is interest they can view and submit an offer. This in turn can be done only if the seller really wants to sell, otherwise the property will continue to linger on, no matter how much marketing is done after it.

The misconception is, that at these levels, the “property will eventually sell for whatever the market will bear”. Not really ,it depends on the “seller” if they really want to sell or not.

www.endrebarath.com

An example, that comes to mind to illustrate my point is a very large parcel of land, which was originally listed in Beverly Hills, 90210 for around $150 million dollars and as the offers came in the seller kept raising the price. Then, when the asking price was around $250 million plus, the offers continued coming in. Clearly the seller was looking for the highest price that is out there. Now that the asking price is $1Billion I am confident that the offers slowed down a bit. This is a clear example where the offers that came in were ‘real’ but the seller did not need to sell hence did not.

There are numerous other examples not just in the Ultra Luxury Land Market but in the Ultra Luxury Home Market as well.

www.endrebarath.com

Los Angeles real estate is probably the most sought after, not only in the nation but on the Globe due to being such a safe investment and our fantastic climate. If you are considering buying or selling a trophy property, please reach out to me directly! I will provide you with straight forward, no nonsense advice on how to sell or buy your Trophy Property in Beverly Hills and vicinity.

If you are considering buying or selling a home, a luxury home, luxury investment real estate, luxury vacation homes, or luxury beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu, feel free to contact me at 310.486.1002 (m) or homes@endrebarath.com or visit one of my websites at  http://www.endrebarath.com.  I am a Pet Friendly Realtor and I contribute a portion of my commission to local animal rescue organizations.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Selling
Location:
California Los Angeles County Los Angeles Bel Air
Groups:
International Real Estate
Hyper-Local
ActiveRain MasterMinds
Berkshire Hathaway Home Services
Inman News worthy Blog Posts
Tags:
endre barath
endre barath vacant land specialist
ultra luxury real estate in los angeles
ultra luxury homes in beverly hills
ultra luxury properties in bel air
ultra luxury building sites in beverly hills

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
3,236,565
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Debbie Reynolds  my goal is the sellers goal, sell the property for the most money at the shortest amount of time, Endre

Aug 07, 2017 11:21 PM #16
Rainmaker
3,236,565
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Debe Maxwell, CRS  there are some clients who come around the second time:) after they realize poetry does not sell the property, Endre

Aug 07, 2017 11:23 PM #17
Rainmaker
3,236,565
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Lou Ludwig  indeed one has to know the market otherwise it is a recipe for failure...Endre

Aug 07, 2017 11:23 PM #18
Rainmaker
5,500,853
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Thank you very much, Endre, for sharing your experience and your observations.

Aug 08, 2017 03:59 AM #19
Rainmaker
3,300,605
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

Whether it is a luxury or any property....it is when the agent has his/her heart in his imaginary wallet....and the market brings him/her to task...with no sale...that the tale is told...not one that the Sellers ever want to hear.

Aug 08, 2017 05:54 AM #20
Ambassador
2,239,285
Wanda Kubat-Nerdin - Wanda Can!
Prado Real Estate South - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

Motivation seems to always be a factor in a property selling Endre in any market. Well written and explained, you are definitely the one to call for trophy properties in your area of Beverly Hills!

Aug 08, 2017 07:31 AM #21
Rainmaker
2,190,192
Elizabeth Weintraub Sacramento Realtor Top 1%
RE/MAX Gold - Sacramento, CA
Put 40 years of experience to work for you

What a waste of time for that poor agent whose client eventually raised the price to a billion bucks. That's what most people are probably thinking. On the other side, though, that agent probably got elevated exposure for luxury homes and a bunch of buyers to work with.

Aug 08, 2017 08:17 AM #22
Rainmaker
1,270,938
Sheri Sperry - MCNE®
Coldwell Banker Residential Brokerage - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Endre,

I always look to see if a great post is featured.  As far as I an concerned, you knocked this out of Dodger Stadium!  I also love your reference to "trophy" properties.  I love watching those celebrity real estate shows but you would be my agent to call for Beverly Hilss and West LA/Malibu area!

Aug 08, 2017 09:00 AM #23
Rainmaker
2,071,373
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Fort Worth, TX
Selling Homes Changing Lives

Great topic! I myself have written about this but how you covered it is excellent! Congratulations on a well-deserved feature story!

Aug 09, 2017 07:13 AM #24
Ambassador
4,068,074
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Hi Endre

We know that any seller in the Beverly Hills/LA area, for land or a house, will get the straight advice from you without any punches.

Jeff

Aug 09, 2017 11:35 PM #25
Rainmaker
3,209,722
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Good morning, Endre... what you have written here applies not just to luxury markets, I've found. And I'm always telling my clients there is no one perfect price for any home. And I've said for donkey's years that pricing a home is an art as much as a science.

Aug 10, 2017 04:57 AM #26
Rainmaker
1,510,905
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Hi Endre Barath, Jr., I scrolled up twice before commenting to see if this was featured, it should be. This happens at any price point but of course in Beverly Hills CA, it's on a much larger scale. Some will do just about anything to get the listing, sellers who seriously want to sell their Beverly Hills CA property would be wise to work with you as their REALTOR®. No gimmicks, no reality TV show, no poetry..just the truth.

Aug 10, 2017 09:14 AM #27
Rainmaker
1,514,029
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

Just wait until you get some more good earthquakes and fires, and they'll be flocking to Maui.... lol.

Aug 10, 2017 06:11 PM #28
Rainmaker
3,248,747
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Endre

Your post on pricing ultra luxury properties is generating a lot of interest.

Good luck and success.

Lou Ludwig

Aug 10, 2017 07:38 PM #29
Rainmaker
1,325,251
Nick T Pappas
Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Hun... - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

Endre, I particularly liked you pointing out about some real estate celebrities view being accepted and touted as an authority. I think it really sets up false expectations in the public and doesn't represent us well as professionals. 

Aug 11, 2017 07:39 AM #30
Rainmaker
3,225,498
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Home and Condo Specialists

I don't believe what I see on TV, but I'm sure many do. Just like staging a house, they are staging their scripts...anyway, this must be an excitng type of market to be involved in.

Aug 12, 2017 04:53 AM #31
Rainmaker
4,797,822
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Good morning Endre.  At some point, I consider some pricing techniques and the sellers relying more on greed than either an art or science.

Aug 12, 2017 04:54 AM #32
Rainmaker
5,500,853
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Good Saturday morning, Endre.

Have a lovely weekend.

Aug 12, 2017 06:48 AM #33
Rainmaker
2,790,420
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

This it's kind of like this accessory to and .of the art in Los Angeles, it kind of makes sense to me

Aug 12, 2017 11:44 PM #34
Rainmaker
2,790,420
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Roy Kelley I love how simple and positive you can be alut things and wouldn't trade it for the world!

Aug 12, 2017 11:46 PM #35
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
3,236,565

Endre Barath, Jr.

Realtor - Los Angeles Home Sales 310.486.1002
Ask me a question
*
*
*
*
Spam prevention