Area’s Most Expensive Homes Stay in Holding Pattern

People seeking to sell their multimillion-dollar homes in today’s market should be prepared for a long wait.

Local Realtors say there are several reasons why Northwest Arkansas homes priced at $2 million or more can easily take a year, or even longer, to find a buyer. Twelve homes for sale in early March had asking prices of $2 million or more, according to the Northwest Arkansas Multiple Listing Service – six each in Benton and Washington counties.

Of the 10 most expensive homes, five were on the market at this time last year. Several have been listed for nearly 18 months.

It’s not unusual for homes in this price range to take a year or more to sell, said Meza Harris of Lindsey & Associates. In 2009, she said, three properties in the two-county area sold for more than $2 million. One was on the market for 118 days, one for 302, and one for 541.

Harris is the listing agent for two homes on this year’s top 10 most expensive listings, including the most expensive home, at 1462 N. Hunter Road in Fayetteville. The 14,000-SF mansion with a $4 million price tag has been on the market since August 2008.

Part of the reason these homes may be slow to sell comes down to customization and personal taste, Harris said.

“If a couple custom builds a $2 million home and they don’t have children, then the home may not appeal to potential buyers who do have children,” Harris cited as an example.

Rick Hawes, with Weichert Realtors-The Griffin Company, agrees the custom factor is a sticking point. He said such pricy homes are a tough sell because people who have that kind of money generally want to build their own.

The $2.35 million home he represents on Indian Creek in Garfield features nearly 600 acres near Beaver Lake as a selling point for buyers who want privacy, he said.

“But if they’re looking in Pinnacle, they’ll probably want to buy a lot and build their own custom home,” he said. “It’s got to have the amenities they want and meet their needs.”

Donald Meisner, also with Lindsey & Associates, said the luxury home market has slowed in the past year or so, but added that buyers have more to choose from and therefore are more careful in making their decisions.

“Most have properties elsewhere that they want to sell before buying one here,” Meisner said. “Some are asking about leases/purchase until their home elsewhere is sold.”

He said he has four clients with “more than a passing interest” in a $2.25 million home on Clermont Circle in Fayetteville.

Hawes noted tighter availability of credit also has made for a more challenging market in this price point than was seen two or three years ago.

“Now because of the restraints we have economically and because of tighter lending restrictions,” Hawes said, “the flexibility [buyers] once had is not available and so it makes it more difficult to get financing.”

As for how the rest of 2010 is likely to shake out for this market, Harris said, “I’m thinking it’s going to be great. We’re very, very busy. We’ve seen a lot of activity in just the last couple of weeks and so we’re very happy about that.”

Hawes also expressed optimism about the high-end housing market this year.

“I’m seeing more movement in terms of more phone calls, which translates into more showings, which translates into more sales.

“Three or four years ago our phones quit ringing, and that’s not the case anymore. I still believe there are buyers out there. The key is for those buyers to be able to get the financing,” Hawes said.