Selling Your Home? Make Sure the Price Is Right!

Selling Your Home? Make Sure the Price Is Right!

Selling Your Home? Make Sure the Price Is Right! | Keeping Current Matters

In today’s market, where demand is outpacing supply in many regions of the country, pricing a house is one of the biggest challenges real estate professionals face. Sellers often want to price their home higher than recommended, and many agents go along with the idea to keep their clients happy. However, the best agents realize that telling the homeowner the truth is more important than getting the seller to like them.

There is no “later.”

Sellers sometimes think, “If the home doesn’t sell for this price, I can always lower it later.” However, research proves that homes that experience a listing price reduction sit on the market longer, ultimately selling for less than similar homes.

John Knight, recipient of the University Distinguished Faculty Award from the Eberhardt School of Business at the University of the Pacific, actually did research on the cost (in both time and money) to a seller who priced high at the beginning and then lowered their price. His article, Listing Price, Time on Market and Ultimate Selling Price,published in Real Estate Economics revealed:

“Homes that underwent a price revision sold for less, and the greater the revision, the lower the selling price. Also, the longer the home remains on the market, the lower its ultimate selling price.”

Additionally, the “I’ll lower the price later” approach can paint a negative image in buyers’ minds. Each time a price reduction occurs, buyers can naturally think,“Something must be wrong with that house.” Then when a buyer does make an offer, they low-ball the price because they see the seller as “highly motivated.” Pricing it right from the start eliminates these challenges.

Don’t build “negotiation room” into the price.

Many sellers say that they want to price their home high in order to have “negotiation room.” But, what this actually does is lower the number of potential buyers that see the house. And we know that limiting demand like this will negatively impact the sales price of the house.

Not sure about this? Think of it this way: when a buyer is looking for a home online (as they are doing more and more often), they put in their desired price range. If your seller is looking to sell their house for $400,000, but lists it at $425,000 to build in “negotiation room,” any potential buyers that search in the $350k-$400k range won’t even know your listing is available, let alone come see it!

One great way to see this is with the chart below. The higher you price your home over its market value, the less potential buyers will actually see your home when searching.

Selling Your Home? Make Sure the Price Is Right! | Keeping Current Matters

A better strategy would be to price it properly from the beginning and bring in multiple offers. This forces these buyers to compete against each other for the “right” to purchase your house.

Look at it this way: if you only receive one offer, you are set up in an adversarial position against the prospective buyer. If, however, you have multiple offers, you have two or more buyers fighting to please you. Which will result in a better selling situation?

The Price is Right

Great pricing comes down to truly understanding the real estate dynamics in your neighborhood. Look for an agent that will take the time to simply and effectively explain what is happening in the housing market and how it applies to your home. You need an agent that will tell you what you need to know rather than what you want to hear. This will put you in the best possible position.

This article was originally posted on KeepingCurrentMatters.com

Superior Colorado Market Report March 2016

Superior Colorado Market Report March 2016

The Spring market is very busy, inventory of homes for sale is low, and interest rates are very attractive. If you’re considering selling, have any other real estate needs or know someone who does, please give me a call at 720.373.9297. I can help determine the value of your home or help with any of your real estate questions.

Scroll down for detailed March market reports including sold listings, average days on market and current homes for sale in Superior.  

Market Activity in Superior in March 2016

Click here to see the homes for sale Superior, CO

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For detailed market reports including

If you’re curious about the current value of your home, I can provide you with a comparative market analysis at no cost or obligation. Call me at 720-373-9297 or reach me by email at barry@superiorrealestatenews.com.

4 Reasons to Hire an Agent for Your New Construction Home

4 Reasons to Hire an Agent for Your New Construction Home

It is a common conception that when buying a new construction home, a buyer’s agent is unnecessary. This couldn’t be further from the truth. When purchasing a home, is is crucial to have an agent on your side, working to make sure that you get the best deal, and to ensure that your home is built to your satisfaction.

Representation is Key
Builders have sales reps who are knowledgeable in available floor plans and upgrades, but keep in mind that sales reps work for the builder and have an obligation to their employer. By hiring a real estate agent, you will have a professional to protect your best interests.

Navigating the Negotiations
A good real estate agent will ensure that you get the most from your new home by negotiating the terms for not only price but upgrades, financing and closing costs.

Guidance from Start to Finish
The decisions related to the contract are only the beginning in the case of a new construction home. Besides financing and working with the title company, construction requires numerous inspections. An agent will guide you through the entire process.

The Builder Pays Your Agent
Real estate agent fees are generally paid for by the seller, in this case the builder. Builders anticipate paying agent’s fees and factor these costs into prices regardless of whether the buyer chooses to use an agent or not.

There are many new construction home projects currently underway in the Boulder County area. If you are interested in purchasing a new construction home or have further questions, contact me at 720.373.9297 or barry@superiorrealestatenews.com.

Your Guide to Boulder County’s Best Summer Camps

Your Guide to Boulder County’s Best Summer Camps

Boulder Valley School District’s last day of classes is this Thursday, May 26. Do you have summer plans for your kids? If not, check out the Daily Camera’s comprehensive Boulder County Summer Camp Guide. Choices include day camps and overnight camps, with options for all ages and interests including: academic camps, outdoor adventure, arts & music, special needs, sports & more!

 

Looking for something outside of Boulder County? Click here for the Denver Post’s Colorado summer camp search tool.