Oh Dear…
Yesterday, good friend and Sacramento real estate broker Gena Riede declined to take a $2 million listing in Whitney Oaks–located in Rocklin, just outside Sacramento. The home has magnificent views, is in a fine golf course neighborhood, and offers over 7000 square feet of potential living area.
This was a listing appointment that Gena had prepared for in detail. She had reserved space here for an article about the property, had made arrangements for us to leave information about the home with top luxury brokers in Northern Europe when there later this month, and had a professional photographer on stand-by.
Gena leaves little to chance.
The floor plan, unfortunately, turned out to be a bit illogical with unspecified rooms at the entry level and an enormous living room and foyer upstairs. The master bedroom was surprisingly small with an adjoining bath that was surprisingly large with sink perched on black-lacquered 2×4’s. There were gaps in drywall around electrical outlets and cracks at drywall joints. The general impression was one of an unfinished home.
This, in short, is NOT a luxury home. It is a project-in-process that demands to either be either professionally finished–or sold to someone who can see it to completion. And given that other smaller and finished homes have sold in this fine Sacramento neighborhood for less than $1 million, it is an improbability that this unfinished property will sell at a luxury home price.
Gena Riede is Sacramento’s premier luxury real estate broker–and is willing to professionally represent true luxury homes in the Sacramento real estate market. She can be reached at 916-417-2699 or at gena@genasell.com
Advice to luxury home sellers: Make sure that your home and it finishes match luxury home standards in your community and neighborhood. Don’t expect the potential buyer of your home to finish it for you.
We just got an asset that falls into this category. The bank thinks it’s one thing, since they lent the guy a couple of million. Except they really should have looked at it. Grandma’s a tear down. Functionally obsolete, squirrelly add ons and no updating since the 70’s. Jack Torrance vacationed at this place. That’s not counting that if the termites ever quit holding hands the thing would collapse. I gave them a land only valuation and they went nuts. Land is worth close to a million but house is a liability.
Valerie: Somehow we expect a golf course home with over 7000 square feet to be–at a minimum–a luxury home. Your example could go into appraisal textbooks. Lender and buyer beware!
Just showed a client a multi-million dollar “non-luxury” home today. My client kept commenting on the “home depot” finishings in the home – how disappointing for everyone. Good thing you turned it down. Would have just been a drain for you.
I turned down a listing that was actually a “luxury home” with all the amenities but it is sitting in the most depreciated area of the city.
This is great advice to all realtors when taking a listing appointment. Remember just because you can have the listing, does mean that is will be good for your personal brand. We mut always be looking outside the box and ensuring the we see clearly how our actions will reflect on the brand itself. In an agents ase this may not be the brokrage, but their reputation.
Carmen: Have heard those deprecating remarks about Home Depot finishes before. Buyers of luxury homes expect luxe surfaces, upgraded appliances and professional construction
Yvonne: Location, location, location–yes?
Michael: I agree–and recall how Sotheby’s was raked over the coals in Northern California for taking a mobile home listing (even though the value was in the land).