In today’s luxury real estate market, it has become increasingly difficult to sell what the owner thinks the home is worth — and even the most high-profile sellers have been forced to lower prices on their mega-mansions.
Because home prices and mortgage rates remain high, buyers are scrutinizing their purchases more than ever. Additionally, in many luxury real estate markets, additional “real estate taxes” are added, making purchasing costs even higher.
So, to woo potential buyers, sellers are trying a new tactic: offering sleepovers in their homes to help close the deal.
Julian Johnston, a real estate agent with The Corcoran Group in Miami, said it’s a trend he’s seeing more and more frequently in today’s luxury market as sellers and agents are forced to become more open to creative strategies such as 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 generates new attention and differentiates a home from its competitors can help move the market forward,” Johnston said. Fortune.
The Wall Street Journal first reported this trend earlier this year, giving the example of a $60 million mansion in which the owner allowed a foreign couple to stay in the house for two months at $250,000 a month before making an offer. Eric Albert, the owner, said WSJ potential buyers wanted to be sure the house was comfortable for them and that it was the right size and well appointed for them.
“For $60 million, you should try it before you buy it,” Albert said. WSJ. “It’s a smart thing to do.”
While Johnston said Fortune he’s not seeing it yet with the majority of listings, “it’s certainly gaining ground in high-end markets where buyers are more selective.”
Other real estate experts, however, see it as a sign of desperation for sellers — and a sign that some luxury homes are too expensive to begin with.
“Sleeping in the house to get a sense of the situation is one of the strangest concepts I’ve ever heard of,” said Simon Isaacs, founder of the luxury firm Simon Isaacs Real Estate based in Palm Beach, Florida. Fortune. “That doesn’t mean it won’t happen. Stranger things have happened.”
The frozen luxury real estate market
Over the past couple of years, there have been several notable cases of high-profile individuals being forced to drop the price of their lavish luxury homes. In April 2024, billionaire media mogul Rupert Murdoch slashed the price of his Manhattan penthouse by 40%, to $38.5 million. Not only did this mean he ended up listing it for much less than he wanted, but he also ended up losing money because he purchased the property for $57.9 million in 2014.
Then last May, Jennifer Lopez and Ben Affleck slashed the price of their $60 million Beverly Hills megamansion by more than $8 million. Most recently, the billionaire founder of Oakley sunglasses became the latest victim of the slow luxury real estate market by relisting his Beverly Hills mansion for $65 million, down from the original price of $68 million in June 2024.
These few examples show that while the market isn’t completely out of sellers’ market, the tide is turning in buyers’ favor as listings stay on the market longer and price cuts become more common, according to Realtor.com.
“Square footage and celebrity status no longer justify inflated prices,” said Anthony Luna, CEO of Coastline Equity, a Los Angeles-based real estate consulting firm. Fortune. “Buyers want smart design, improved systems and long-term value. »
Meanwhile, buyers and sellers of luxury goods also face real estate taxes in some markets. The real estate tax in Los Angeles, for example, applies an additional 4% tax to sales of properties 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 typically paid by the seller, is separate from a home’s sale price and can represent a “huge amount of money,” Selling Sunset star and Oppenheim Group agent Emma Hernan previously said. Fortune. She described it as a “nightmare” for sellers and agents.
One of the most recent examples of municipalities considering property taxes is Cape Cod. Already one of the most expensive real estate markets in the United States, where homes often top $1 million, Warren Buffett’s Berkshire Hathaway Home Services says it’s about to get more expensive for luxury home owners. Cape Cod lawmakers are considering a tax on wealthy homeowners that would add an additional 2 percent surtax on sales of luxury homes above $2 million.
Given these factors, luxury home owners will need to be more careful than ever when pricing their properties.
The reason there are so many price cuts in the luxury sector is “because they were mispriced in the first place,” Issacs said.
“Everyone has expectations about what their home is worth, and real estate brokers who are out in the field are showing people every day that they have a better understanding of what people want, what their appetite is and what the spending is for,” he said. “Some things they are willing to spend [on]and some things are not.
A version of this story was published on Fortune.com on August 28, 2025.
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