Demand for luxury homes is increasing nationwide, and list prices are steadily on the rise. Factor in the rapid growth of personal wealth, and you have set the scene for a seller’s market in affluent housing opportunities and upscale real estate investments. If you are looking to enter the real estate game and diversify your investment portfolio, luxury real estate is a lower-risk option for potential investors or those intimidated by gold or stock investments.
But before you enter the competitive marketplace, you will need to know the value of the luxury home you may be eyeing or selling. Several key indicators inform buyers and sellers of the property’s current value. Getting other experts involved for a diverse, thorough opinion or appraisal is a wise move too. We will explore the proper way to analyze the value of a neighborhood, how to enlist the help of an appraiser, and how to factor in the current real estate market in your estimate.
Get an appraisal
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For an expert opinion on the value of your Sarasota luxury home, seek out an appraisal before listing your property. With property values steadily rising in affluent areas like Sarasota and Siesta Key, now is an excellent time to enlist a professional appraiser. These experts analyze the property, factoring in location, amenities, current market conditions, looming repairs, and any upgrades made to the home.
According to data and information collected by AppraisalTek, several luxury appraisals are "bracketed," which is the practice of providing a range of potential values that are relative to the value of surrounding property. Developing an estimate of the value of nearby homes that are comparable in size and condition provides helpful context for your appraiser.
An average luxury home appraisal costs around $300. Many sellers consider this a worthwhile investment and factor in their appraiser’s estimate when creating a fair list price. Appraisals help sellers prepare their homes for listing and keep abreast of their investment’s current value in the market. Finding an appraiser who is familiar with the fluctuation of property values in your area as well as the worth of neighboring properties will be very beneficial once you list your luxury home!
While an appraisal is the most thorough way to determine the worth of your luxury property, many sellers benefit from collecting information relevant to the condominium or townhouse they possess. Factor in the number of bedrooms, bathrooms, square footage of the home and surrounding land, and any other alluring or unique qualities that will set your listing apart from the rest. Does your luxury property feature an in-ground pool? Private access to a beach or inlet? Does the home rest in a gated community or near a luxury golf course? All of these factors may increase the worth of your property, help boost sales, and attract affluent buyers.
The definition of "luxury" as it pertains to listed property or land is somewhat loose. Typically, luxury real estate implies a desirable location, modern amenities, considerable square footage, luscious floor plans, and upscale features. Make sure your property meets these qualifications, and treat or stage the property to reflect your (or your buyer’s) definition of luxury. You can sometimes gain incredible insight into the worth of your house or condominium by making necessary renovations and collecting important data for your listing. Increase allure by taking high-quality images of each room and adding them to your listing or sending them to your realtor.
Look at nearby properties
Location is everything, and basic economics dictates that something is only worth what people are willing to pay for it. The market currently favors the seller, so evaluate your neighborhood and compare the listing prices of similar properties. In affluent seaside areas like Siesta Key and surrounding towns, list prices are well into the millions for Sarasota mansions and Longboat Key estates.
If you’re interested in selling your luxury home, look at other properties for sale in your neighborhood and view relevant listings on this premier real estate site. A seaside neighborhood such as Siesta Key entices prospective buyers with its proximity to upscale dining spots, empowering schools, and easy access to the beaches that enrich the area and provide natural beauty.
Homes for sale nearby give the right context for your listing, but your property may hold more value than other listings in the same neighborhood. Refer to your appraisal, or consider the added value that your specific home may offer. If your estate has a gorgeous master bathroom, a sizable garage fit for luxury vehicles, or a wraparound patio overlooking the Atlantic Ocean, your house may carry a higher price tag than the listing next door, which does not offer the same level of comfort and class. The local market is incredibly relevant to your selling experience, but do not sell your unique property short!
Partner with an expert realtor
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Selling an upscale property can be daunting, especially in an ever-changing marketplace. Many sellers attempt to appraise and list their luxury mansion or townhome independently and struggle with reaching the right buyers and closing quickly while remaining profitable. Take the guesswork out of appraising your property, and read this seller’s guide created by Melissa Gissinger and her first-class real estate team.
Melissa and her associates are friendly, knowledgeable, and invested in your experience as a seller. As an experienced entrepreneur, Melissa values professional relationships over commissions and lives in Sarasota. Her unique familiarity with townhomes in Sarasota and oceanfront property for sale in Sarasota will guide you towards an informed decision regarding your property. Her story is incredible, and if her expert guidance and insight are what you are looking for, contact Sarasota real estate expert Melissa Gissinger for listing assistance.
*Header photo courtesy of Melissa Gissinger