Pricing Your Home to Sell

Selling Your Home? Consider These 3 Pricing Factors

Thinking about listing your home for sale? Today’s buyers will appreciate more inventory and your home is likely to sell shortly after hitting the market. While it’s easier to get top-dollar for your home in today’s market, setting an appropriate listing price still matters. Below are some tips on how to price your home to sell in any type of market!

The housing market is always changing and it’s important to focus on three things when determining the price to list your home. Please take a SEC (yes, an acronym: Statistics, Environment, and Condition) and consider a few things!

1. Statistics

99.9% of all real estate professionals will check past sales when determining a listing price for a home.

In a fast-paced market, past sales alone won’t cut it, as the data that is available today is most likely from negotiations and deals that were put together over 30 days ago. In addition, your broker will need to look into comparable properties that have recently gone pending and dig a little for info. Fellow listing brokers will usually provide the details on what they went under contract for, how many offers they received, etc. This helps to further refine a listing price.

Lastly, you need to keep an eye on your competition and their pricing. When potential buyers are touring homes they are searching in their desired neighborhood, price range, and home specs (bedrooms, bathrooms, square footage, etc.). If your home is priced too high, it may take longer to sell.

2. Environment

Have you ever seen a listing online and said “WOW, I need to go see this home — I think it’s the one!” Then, you arrive and find out there is a 12-story building blocking the view that they conveniently “shot” around during the marketing process. Environmental factors need to be factored into your list price. Buyers are usually making the most expensive purchase of their life and they are going to notice and analyze everything. Just because you don’t mind the 12-story building, buyers may see it as a negative if your competition doesn’t have the same issue. Some other examples of environmental issues are:

  • Busy streets
  • Interstate noise
  • Distressed neighboring property
  • Loud neighboring commercial property
  • No street parking

Most homes have something environmental that could affect the final sales price.

3. Condition

The condition of your home will have a huge impact on list price. If you are considering making updates or repairs before you list, consult with your real estate broker for sound advice. By taking needed repairs and updates into consideration, you will have already addressed items buyers will most likely push back on. Pricing your home accurately based on its current condition will be apparent when buyers search online. There are a ton of buyers out there that are looking for homes that aren’t updated and are willing to pay a fair market price for them.

In Conclusion

You only have one opportunity to make a good first “pricing” impression on the market! There are a million articles on overpricing and how it’s a bad strategy. Taking a SEC to come up with a solid list price will ultimately net you more at the closing table!

Home sellers stretching for every last penny in metro Denver

Source: Aldo Svaldi of the Denver Post

If you were to search “overpricing a home” on Google, you’d find pages upon pages of articles and blog posts advising that it’s a bad idea. A year ago, one could get away with overpricing a home since putting it on the market alone would garner positive attention. Today, things have changed. Highlighting his reasoning with real time Denver market statistics, this article’s author advises slightly under-pricing a home when listing it these days. Agents and buyers not only know what the home is worth; they also know that a listing price must accurately represent the home’s worth in order to see a quick sale.

Read Article

Here’s How Much More Homes with a Garage Sell for in Denver

Source: Carley Milligan and the Denver Business Journal Staff

It probably comes as no surprise that homes in Denver with a garage are selling at a higher rate than those without; but just how much higher? A whopping ten percent! For an average home in Denver, that’s roughly $35K extra for a roof over your car. For cities like Chicago, it’s an even more sought after commodity, where the snow fall (and lack of sunshine to melt it away) makes it less inviting to be outside and a real challenge to scrape off your car.

Check out the full article below for more information on where in the U.S. a garage will get you the most return!

Read Article