This home was listed on 9/26/06. Yes, as in 2006. It's been on the market for 520 days and recently reduced again. This is how the pricing history breaks down.
9/06: $11,995,000
9/07: $10,999,000
2/08: $9,999,000
I've seen this house and it's fabulous. You'd be hard pressed to find a better location in all of Texas. But did they really miss the mark by $2,000,000? Is this a prime example of how overpricing will kill a listing and cause it to end up selling below it's true market value?
I realize many of you are saying, "Jeff. Don't be silly. Pricing rules are completely different when it comes to ultra high end real estate." And I would say you are somewhat correct. But if this home had come on the market at $10.5 million in the beginning, would it have stayed on the market for 520 days? As it is now, they probably stand to end up taking far less than what they could have had they been priced competitvely in the beginning. Pricing strategies work for high and low end real estate regardless of what market Steve Brown thinks we're in.
Ouch! Thats gotta hurt that long on the market. I can't imagine someone not trying to market this property better and get a sale. Is there a realtor in area that specializes in luxury rentals or is it just a stuborn seller?
ReplyDeleteI don't think there is such a thing as "luxury rentals" in Dallas. Sure we have some crazy rent prices for a few penthouses and some large mansions, but our luxury rental market consists of big businesses housing big business execs. No one rents in the summer here because it's too hot and no one rents here in the winter because it's too cold and we never get any snow.
ReplyDeleteOh, and to answer your question, I don't know the seller so I can't say if the Realtor just missed the mark or the seller is now coming to grips with reality. Time will tell!
Maybe there marketing the worng audience. How is it zoned? Could potentially be a business a B&B or a restaurant or Club House of sorts. Would the city consider it as a community center. Would it not serve as a cultural center of some sort.
ReplyDeleteLooks like a attractive property. Maybe with the new loans coming out someone will be better able to finance.
This will only be a private residence. It's on one of the most exclusive streets in Texas and possibly the country. You can't imagine the money that runs through these streets. So for that reason it will never be anything but a private residence.
ReplyDeleteAnd unfortunately Dallas does not qualify for the raise in jumbo loans. We will remain at $417K so no one around here will benefit from that. Although, California and your state of Florida I hope will see tons of improvement for real estate.