The Upside of Aspirational Pricing

Instead of “priced to sell,” what if “priced to get tongues wagging” is the way to go in high-end residential real estate?

“Aspirational pricing” has been a matter of hot debate in the residential market over the past few years. Brokers often caution sellers to be clear-eyed in pricing, lest a property lingers on the market for too long. But at the top of the market, perhaps the opposite is true.

“Aspirational pricing guarantees two things: a wet kiss from the media, which means free marketing for your listing, and the illusion of a deal,” says Hiten Samtani in the latest Resi Rundown, arguing that the attention and media impressions from a sky-high asking price — even if that price has no basis in reality — might be worth it.

Samtani walks viewers through the way the news cycle works, looking at recent megadeals involving celebrities like Ben Affleck and Jennifer Lopez, as well as a $185 million listing. He talks about why reporters will often cover a story about a high-end residential listing even when they know it’s far from reasonable.

“Very few newsrooms actually tell their readers whether that asking price is sensible or just magical thinking,” Samtani says. “The thinking is: The ink generates the buzz, and the asking price is merely a starting point in the conversation. So you might as well start high.”

Watch the video above for the full breakdown, and check out more of TRD’s Resi Rundowns here.