by Ellen James Martin – Jul. 22, 2008 04:11 PM
Universal Press Syndicate
Three years ago, a surgeon and his wife started to build a megahouse. But final work on the 14,000-square-foot, energy-hungry house stalled after disputes over details erupted between husband and wife. A year ago, she filed for divorce and moved out. Now, with the $4 million property nearly complete, the domestic court demands it be sold.
The husband realizes his dream house was a mistake because it felled his marriage. Moreover, he and his estranged wife realize their place will sell for less than they paid to build it.
This story illustrates the issues facing sellers of jumbo homes in an era when bigger is not always better.
“The paradigm is shifting away from the big house, just as it shifted away from the big SUV toward gas-saving cars like the Prius. In this country, it’s now considered gauche to flaunt that supersized house on the hill,” says Sid Davis, author of Your Eco-Friendly Home: Buying, Building or Remodeling Green, due out later this year.
Of course, home buyers with several children or elderly parents in their household still relish a big residence. But the rising cost of home utilities is one reason that fewer buyers are now interested in large houses, especially those more than 7,000 square feet. Many also fear the cost of rising taxes and upkeep.
Succeeding with the sale of a very large house in the current real-estate market means you and your listing agent must set a realistic price. It also means you must market strategically to a shrinking group of big-home purchasers.
Here are pointers:
Go international with your marketing campaign. The U.S. dollar is weak against many foreign currencies, especially the euro. This makes anything sold in U.S. dollars seem cheap to well-off people in other countries.
Could your large home appeal to bargain-minded purchasers from abroad? It’s not inconceivable, especially if your upscale place is within or near a cosmopolitan city or in a popular resort area, says Leo Berard, charter president of the National Association of Exclusive Buyer Agents (www.naeba.org).
The globalization of real-estate sales has intensified interest in the field within the membership of the National Association of Realtors. By going to its Web site (www.realtor.org), you’re likely to find agents in your area who have earned the designation of “certified international property specialist.”
Create a Web site dedicated to the sale of your home. If you’re trying to sell a large house that you bought for a hefty sum, it could be worth investing the several thousand dollars it costs to obtain a professionally designed Web site for your place – one that showcases your property to purchasers in the United States and elsewhere, author Davis says.
How will you drive traffic to the site? Davis recommends that you and your listing agent invest in advertising in newspapers or magazines that reach affluent audiences.
Talk up energy-saving features on your property. Does your house have extra insulation or double-pane windows? Does it have “zoned” air-conditioning and heating systems? Do you have energy-efficient appliances? If so, these are among the features you and your listing agent should highlight in your marketing materials, Davis says.
Provide contractors’ estimates for energy-saving improvements. Perhaps your huge house was constructed with little attention to energy conservation. Then how can you assuage the fears of potential buyers who worry about whopper-size gas and electric bills? Davis suggests you call in contractors for bids on energy-saving work, such as new windows and attic insulation. Then provide these bids to prospects so they’ll know how much it would cost to retrofit your property to save energy. Also, give them copies of your recent utility bills.
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