Pricing your home in a “Seller’s Market”’
By now you’re probably acutely aware that Colorado is currently in a “seller’s market”. Additionally, spring and summer months in Colorado are indeed the best time to sell a home. There are simply more buyers looking for homes to purchase than there are homes for sale. Although it might be easier to sell a home in this “hot” market, proper pricing is still the key to creating demand. Ultimately, it’s the demand that drives competition. The larger the number of buyers for your home, the higher the odds you’ll make more money.
Proper pricing requires strategy. If you set the price a bit under market value, this will attract more buyers. It also will leave some upward negotiation room for buyers to begin bidding over the asking price. It helps to think of your house listing price as a “minimum bid” price. If the price is attractive to multiple buyers, then more buyers will ultimately make offers on your home and “bid” it up to the final market price. Setting the price too high will draw in fewer buyers and may set you in a downward negotiating pattern from the beginning.
Proper pricing of a home has many benefits to a home seller. Benefits such as: fewer days on market (less hassle to the homeowner), multiple offers (which could drive up the sales price), and better terms for the seller (waived contingencies, ideal closing dates, post-closing possession for a seller moving to another home).
In terms of pricing, there is a lot of data out there on the internet in regards to the value of your home. However, online valuations just provide a general idea of a home’s value. Their margins of error can fluctuate by upwards of 10%+ (think being “off” by $50,000 on a $500,000 home!). Having hyperlocal professional and precise data based on the most current sales and market trends in your specific neighborhood is crucial to proper pricing.
A Refreshing Look at the Question “What is my House Worth?”
Let’s take a look at some of the stats for our area to get a better idea of what is going on in the local housing market!
In Arapahoe County for April 2018, the average sales price* was:
- $395,000 for Single Family Homes (up 8.2% from 1 year ago)
- $245,000 for Condos/Townhomes (up 11.4% from 1 year ago)
In Douglas County for April 2018, the average sales price* was:
- $491,000 for Single Family Homes (up 8.0% from 1 year ago)
- $325,500 for Condos/Townhomes (up 10.3% from 1 year ago)
I have access to detailed stats across Colorado and can help you find out the worth of your property any time. I can also help you determine what your home is worth even if it’s in a different area. As always, I am here for you. If it’s time for you to buy or sell, let’s talk.
*Median sales price based on a six-month moving average