Regardless of market conditions sellers frequently think that their home is worth more than it really is. Most sellers think their home is nicer than the one that just sold down the street and offer various details that make their home the most valuable one in the area. That will never change.
But this market is different. The luxury market of Manhattan Beach real estate really is hot and prices are going up, but are sellers taking those expected increases to unrealistic levels? As Realtors we see what values, why, and try to use the latest sales information to see where things are going and how quickly. In this market, however, sellers often seem to think that regardless of how their home compares with the latest home sale….theirs is better….and worth far more.
It seems in this local market that we’re starting to see homes sit on the market for longer and it may soon no longer be a “make me move” or “name your price” type of market. As homes sit longer, inventory will rise and once the perception is created that buyers may be able to get a better price if they wait….they’ll likely wait.
Sellers need to be cautious not to overprice their homes and use the expert opinions of local real estate specialists to explain what the home is worth and why it may not be worth what the seller thinks it worth.
Affordability doesn’t seem to be a challenge in this slice of the luxury market, but overpricing may just lead to a slow down of this hot market and a flattening of prices.