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Updated over 6 years ago,
Is my mansion listed way too low?
I have a Dilemma. Should I dramatically raise my price? (Current list price $1,250,000. Thinking of going to close to $2,000,000.)
I have a historical mansion for sale that's a flip project. It's been on the market for a while now, and is currently listed at $1,250,000. 7,391 ft, 6 bed, 6 bath, 5 fireplaces. New electric, plumbing, full house sound system, CAT5 and cable lines throughout, original light fixtures and features, new open concept kitchen, master bath, finished carriage house, sports bar in the basement, etc. It's listed in the national and regional historical directories. Previous sales history - In June 2008 my house sold for $1,425,000 (with an unfinished carriage house, small 90's kitchen that didn't fit the house style at all, and no master suite. I have addressed all 3 of these issues.) I am currently about to relist the property (the listing is expiring in a week.) As I write this, I am having a radiant gas-powered 150ft heated driveway installed (it's a steep driveway that faces north) and I will be relisting this property in a week as soon as the new concrete is poured.
I'm wondering if I have it listed way too low, and if this could be a reason it hasn't sold yet. Since June 2018, 2 homes of identical or smaller sq footage within a quarter mile of mine, built within 3 years of mine, sold for $1,900,000 and $1,800,000 (each was on the market for less than 2 months before selling. Mine has been on the market for an entire year.) Yesterday, a house even closer to mine but at only 5,004 sq ft listed for $1,700,000. 2 of those three homes are on my street (the most prominent/prestigious street in my city) and the other was on a side street just off from it. Granted, mine has a steep driveway that up till this point was unheated, but I am currently addressing that problem. There are other comps that reflect my price as well, but these 2 most recent ones sold the fastest, and were listed so far above.
Is there anything to be said about dramatically raising my price close to $2 Million when I re-list my house? It doesn't make any logical sense to me, but maybe I would appeal to a different buyer profile that almost prefers to buy the most expensive mansion on the street that they can find? I would absolutely love to raise my price, but I don't want to shoot myself in the foot either, and just prolong the eventual sale. Any thoughts?