Mansion Owners Playing Hardball
If you thought that in the economy and depreciating housing market would translate to massive discounts on mansions, think again! According to Forbes Magazine (via realestate.yahoo.com), mansion owners are playing hardball and raising prices for their luxurious estates on the market.
Increasing the asking price for a property would seem like a foolish decision, but psychologists beg to differ! Dr.Barry Farber, a psychology professor at Columbia University’s Teachers College, told Forbes that raising the price of a luxury residence makes the home “even more special or desirable than he or she first considered and worth the extra dollars.”
And the logic is just as sound from a financial front: For wealthy prospective buyers, a relatively minor price hike is not a deal breaker for a unique home that the buyer loves. According to Dottie Herman, president and CEO of Prudential Douglas Elliman, “If [the home] is one of a kind, if you really want that house, you are going to get it. If you can afford $3 million, you can afford $4 million.”
