Why are over-customised luxury homes so difficult to sell?
- Customisation might not appeal to personal, professional and family needs of potential buyers
From underground basketball courts to private recording studios, luxury homes are hitting a point where they’re so over-customised that they’re difficult to sell.
Alec Traub, a Los Angeles-based real-estate agent with Redfin, says the trend can be seen across wealthy LA neighbourhoods such as Beverly Hills, Hollywood Hills and Bel-Air.
“Customisation is price dependent: You see more as you go higher in price point,” Traub said, noting that the “magic number” where homes start getting highly customised is around US$5 million.
These homes are being customised by developers and homeowners, Traub said. Developers will “add features they think people want or need, but they don’t err on the side of caution”.
Wealthy people are sparing no expense to keep their lives private and secure, whether that means removing their homes from the grid or hiring architects to conceal buildings. But, there is, Traub said, a level at which homes become too privacy- and security-oriented in a buyer’s eyes.
“I’ve seen examples where you walk into a house and every room has a camera,” he said. “And not everyone wants that.”
Similarly, wine cellars and home gyms, two details developers have been known to add to homes, appeal to a specific buyer, but not every buyer.
On top of that, homeowners add their own touches that cater to their personal, professional and family-based needs.