Pricing Your Denver House to Sell

Many factors go into the how of pricing a Denver Home to  sell, but there are only a few motivating variables for ‘the why’ in selling your home. The latter is just as important to understand as it will have a direct affect on ‘the how’.

For example, a home in dire need of updates, repairs and improvements needs to be priced to attract a buyer that is willing to invest capital. If you have to move and you’re carrying two mortgages, will you need to price low to sell quickly? Evaluate the market, and if it is soft, can you wait? These are very important question when preparing the pricing of your home to sell.

A dangerous motivation for selling is to “test the market.” Typically, the seller isn’t in a rush to move but instead is looking for the highest price for their home. Unfortunately, overpricing your home is a tactic that can work against you. Buyers have the same access to neighborhood information and if they see your home is overpriced for neighborhood, chances are they will move on leaving your house on the market longer. The longer your home is on the market, the less it will fetch. In addition, if you take your home off the market and put it back on in the future, you run the risk of a negative public perception.

The best way to price your home to sell is by doing a little footwork to understand the market.

When it comes time to sell your home, emotions can be mixed. You want or need to sell your house quickly but you also want to get the highest price. Because the two don’t always happen at the same time, it is important to have a balance and not get trapped in the perils of overpricing your home.

The minute you list your house with the MLS the selling activity becomes public record and the period of initial interest starts ticking! The first 30 days a home is on the market is critical and the goal should be to generate as much interest and activity as possible. “Testing the market” is not a good way to value your home if you’re not serious about selling and pricing to “negotiate down” or for “bargaining room” can work against you.

Most buyers don’t look at just one property and if your home is overpriced for the comparable sales of the neighborhood not only can it deter a buyer but it might falsely communicate the other homes are a better value. If your home remains on the market too long you run the risk of being perceived as desperate and eventually will receive lowball offers.

Pricing your home to sell involves understanding the neighborhood market, comparing competing home prices in your area, working with a reputable agent, getting an inspection to prepare your home to sell and most important, being realistic. Just remember, an overpriced house will ultimately cost you more in the long run than if you had just priced it right from the beginning.

Do Your Research

It is important to know what is going on in your neighborhood market. Have housings prices declined or risen over the last year and by how much? How long are homes staying on the market? What kind of inventory is listed in your neighborhood and what is the demand for a home like yours? What are homes being SOLD for in your neighborhood? Is your market seasonal? If so, it could be why some homes take longer to sell. In some areas, spring and summer are the busiest selling seasons. Evaluating market trends in your area can help you get started.

Check Out the Competition

There are plenty of real estate apps that can gather your neighborhood information and spit out values, but don’t tell you how the market trending. Find out how many homes are for sale in your area. What are the price point for home sales and in what condition? If you find a home similar to yours also find out how long it has been on the market. Chances are if it’s been on the market a long time it might be overpriced. Lastly, when a home does sell, check out how much above or below the asking price it sold. This can help you determine how the market is moving and how aggressive you can be in price setting.

Use your Agent

Agents are available to help you but that doesn’t mean you should be apathetic to the selling process. Most agents will appreciate your effort in understanding the selling process when you can engage in a conversation of buying and selling. Smart conversations about home improvement to increase selling price and expectations of selling timelines and pricing can add value and ease in selling your home.

Get your Home Inspected

Although the buyer will likely get the home inspected on their dime, it is recommended to hire a licensed inspector to access all major systems (electrical, plumbing, heating, cooling, foundation, roof) of the home. Houses have a life of their own and sometimes we can’t see everything. By getting needed repairs or updating the house to put on the market, the seller won’t be burdened with unexpected, costly repairs when the time comes. Additionally, if systems are in good working order, the seller can use that information as a marketing tool.

Be Realistic

Homes are like children. We all think ours are special. Try to approach it from a buyer’s perspective by looking at similar price points of homes in your area and asking how your home compares. Keep in mind the objective is to sell the home in a timely manor