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Luxury homes are over-adjusted so that they are difficult to sell



From underground basketball courts to private recording studios, luxury homes hit a point where they are so over-adapted that they are hard to sell.

Alec Traub, a Los Angeles-based real estate agent at Redfin, recently told Business Insider that the trend can be seen in rich LA neighborhoods, including Beverly Hills, Hollywood Hills and Bel-Air.

"Adjustment is price-dependent: you see more when you go higher in price," said Traub, noting that the "magic number" where houses are highly customized is about $ 5 million.

These houses are being adapted by both developers and homeowners, according to Traub.

read more: Luxury real estate developers build extensive cellars for millions of houses, including spa's, tennis courts and even ballrooms.

Developers, he said, "will add" functions that they think people want or need, but they are not mistaken on the side of caution. "

As Business Insider & # 39; s Hillary Hoffower pointed out earlier, wealthy people do not save costs to keep their lives private and safe, whether that means removing their homes from the net or hiring architects to hide buildings. And yet, as Traub said, there is a level at which houses become overly privacy and security-oriented in the eyes of a buyer.

A large wine cellar in a customized house.
George Gutenberg / Getty Images

"I've seen examples where you walk into a house and every room has a camera," he said. "And not everyone wants that."

Likewise, wine cellars and home gyms, two details developers are known to add to homes, appealing to a specific buyer, but not to every buyer.

read more: A project developer who has designed millions of NYC penthouses says that there are currently 2 big surprises in the luxury property market

In addition, homeowners add their own accents that meet their personal, professional and family needs.

"You will see that entire rooms have been blown out to make recording studios," said Traub, "or a whole cellar has turned into a basketball court."

Traub also said that while customization has long been a trend in luxury real estate, it has become especially prominent since the idea of ​​workplaces has evolved. Instead of having separate spaces, the two functions are merged into a single space.

A converted recording studio in Studio City, California, at home.
Thanks to Redfin

Evidence of over-adjustments that damage the chances of a house on the market is clearly seen in a $ 85 million shopping center that comes with a $ 2 million construction credit in case the buyer does not appreciate certain layout details suggests. Or the Bel-Air megamassage that comes with a 40-seater cinema, a bowling alley and a huge candy wall – and which after two years on the market and a price reduction of $ 100 million still does not sell.

read more: Nobody wants & # 39; Versailles in Manhattan & # 39; buy a 19.75 million dollar Upper East Side mansion that has been on and off the market for 15 years

Although prominent in LA, the trend is not located on the west coast – and is not always visible to the ordinary eye. As Katie Warren of Business Insider reported earlier, luxury real estate developers pour money into cellar-level layouts, filled with spas, art galleries and ballrooms in luxury markets such as San Francisco, The Hamptons and London. Similarly, some wealthy homeowners have paid up to $ 500,000 to install luxury panic rooms in their homes.

Ultimately, the problem with personalized touches in multi-million dollar homes is that buyers at higher prices are generally selective and specific about what they want. In this way, highly personalized data does not help to sell houses in resale: they hurt them.

Rich buyers, said Traub, "do not want to buy a reasonably brand new house and put money in it to turn it into what they want, but instead they look at other houses that match their exact needs."

"The question is not" how much did it cost to build, "said Traub. "Instead, it becomes" how much does it cost to have this removed? "


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