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In today’s luxury housing market, it’s becoming increasingly difficult to sell for what the homeowner thinks the home is worth—and even high-profile sellers forced to lower the price of their megamansions.
As home prices and mortgage rates remain high, buyers check their purchases now more than ever. In addition, in many luxury housing markets, more “mansion tax” tacked on, making the purchase costs more expensive.
So to attract prospective buyers, sellers are trying a new tactic: offering sleepovers in their mansions to help seal the deal.
Julian Johnstona real estate agent with The Corcoran Group in Miami, said it’s a trend he sees more often in today’s luxury market as sellers and agents are forced to be more open to creative strategies like price adjustments and unique marketing campaigns to stand out.
“In the luxury sector, where buyers often have the means and time to wait for the right property, anything that can spark new attention and differentiate a home from its competition will help keep the market going,” Johnston said. luck.
The Wall Street Journal first reported about this trend earlier this year, offering the example of a $60 million mansion where the owner allowed a foreign couple to stay in the house for two months at $250,000 per month before making an offer. Eric Albert, the owner of the house, said WSJ potential buyers want to make sure the home is comfortable for them and make sure it’s a good size and layout for them.
“For $60 million, you have to try it before you buy it,” Albert said WSJ. “It’s a smart thing to do.”
As Johnston spoke luck he hasn’t seen it on most listings, “it’s definitely gaining traction in high-end markets where buyers are pickier.”
Some real estate experts, however, see it as a desperate move for sellers — and a sign that some luxury homes are overpriced to begin with.
“Sleeping at home to feel it is one of the most amazing concepts I’ve ever heard,” said Simon Isaacs, founder of Palm Beach, Fla. Real Estate by Simon IsaacsSPOKE luck. “That doesn’t mean it can’t happen. Stranger things do happen.”
The frozen luxury housing market
In the past two years, there have been many high-profile cases of high-profile people being forced to lower the price of their luxury homes. In April 2024, billionaire media mogul Rupert Murdoch took the lead the price is lowered his Manhattan penthouse by 40% to $38.5 million. Not only did that mean he listed it for less than he wanted, but he also lost money because of it bought the property for $57.9 million in 2014.
Then this May, Jennifer Lopez and Ben Affleck the price is lowered on their $60 million Beverly Hills megamansion for more than $8 million. Most recently, the billionaire founder of Oakley sunglasses became the latest victim of the sluggish luxury housing market by relisting his Beverly Hills mansion for $65 million, down from the original $68 million listing price from June 2024.
These few examples show that while not completely out of a seller’s market, the tides are turning in favor of buyers as listings stay on the market and price cuts become more common, according to Realtor.com.
“Square footage and celebrity status no longer justify inflated prices,” Anthony Luna, CEO of LA-based real-estate advisory Coastline Equity, said. luck. “Buyers want smart design, upgraded systems, and long-term value.”
Meanwhile, luxury buyers and sellers also have to contend with mansion taxes in some markets. LA’s mansion tax, for example, applies an additional 4% tax on property sales of at least $5 million and a 5.5% tax for properties north of $10 million, further complicating real-estate sales and pricing.
The tax, which is usually paid by the seller, is separate from the sale price of the home and can be a “huge amount of money,” Selling Sunset star and Oppenheim Group agent Emma Hernan previously said. luck. He described it as a “nightmare” for sellers and agents.
One of the most recent examples of municipalities considering mansion taxes is Cape Cod. Already one of the most expensive housing markets in the US where homes regularly exceed $1 million, according to Warren Buffett’s Berkshire Hathaway Home Servicesit’s about to get more expensive for luxury homeowners. Cape Cod lawmakers are considering a tax on wealthy homeowners Tack an additional 2% surcharge of luxury-home sales above $2 million.
Considering these factors, luxury home owners should be more conscious than ever when pricing their properties.
The reason there are so many price drops in the luxury sector is because “they got the price wrong in the first place,” Issacs said.
“Everyone has an expectation of what their home is worth, and real estate brokers who are on the ground showing people every day have a better understanding of what people want, what people’s appetites are, and what things cost,” he said. “Some things they’re willing to spend (on), and some things they’re not.”
A version of this story was published on Fortune.com on August 28, 2025.
