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

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.

5 Tips for Increasing Your Home’s Selling Price

5 Tips for Increasing Your Home’s Selling Price

Even the simplest measures can make a big difference when you list your home for sale. Here are 5 of the most effective ways to increase the value of your home before you put it on the market.

Fresh Paint.
Simple and cost-efficient, one of the most effective improvements of all is paint! Freshly painted rooms give a clean and update look, adding to the perceived value of your home. Select neutral colors that appeal to the greatest number of people, making your home more desirable.

New Carpet.
Nothing turns buyers off more than knowing that they will need to take on the task of replacing old, worn out or stained carpeting. Start by replacing the most worn out or stained carpet first and replace the others as your finances allow.

Kitchen Update.
For maximizing the value of your home, kitchen updates are essential. Even small kitchen updates will add big value to your home. Many buyers are looking for updated appliances, granite countertops and updated fixtures & plumbing.

Bathroom Update.
Bathroom updates can make a big difference at a relatively low price. For example, replacing an outdated vanity, old plumbing and lighting fixtures or adding a new tile floor will give your bath an updated, modern look.

Professional Cleaning.
A buyer’s first impression is everything. Hire a cleaning service and invest in a top-to-bottom scrubbing.


 

Ready to list your home? If you are considering selling your home, or would like to know the value of your home, contact Barry today! Barry can give you specific feedback on what factors make for a quick sale in Superior and how you can get the highest price for your home. He can also provide you with a list of trusted local professionals who can help prepare your home for sale. When you are ready to list your home, Barry will use his expertise of the local market to walk you through every step of the process.

Superior CO Zillow Zestimates vs. Sold Prices January 2016

Superior CO Zillow Zestimates vs. Sold Prices January 2016

Ever wonder how accurate those Zillow Zestimates really are? Below you will find real homes sold in Superior last month compared to their Zillow Zestimates. Scroll down to the bottom of the post for more information on the accuracy of Zillow Zestimates.

What is your home worth? CLICK HERE for a customized report of comparable homes in your neighborhood!

 

January 2016 Superior Zillow Zestimates vs. Sold Prices

Single Family Homes

Zillow Comparison Jan 16

Condos and Townhomes

There were no sold condos or townhomes in Superior in January.

disclaimer ires

Are Zestimates accurate? 


Zillow is the most popular online real estate information site, with over 70 million unique visitors per month. Zillow provides information on houses that are not on the market as well as active listings of properties for sale.

According to Zillow CEO Spencer Rascoff, Zillow Zestimates are “a good starting point” but nationwide Zestimates have a “median error rate” of about +/- 8%. On a $500,000 house, a seller is looking at a $40,000 disparity — which can potentially distort the perceived market value of a listing.

So what’s the takeaway?  When buying and selling, keep in mind that Zestimates are no more than starting points in pricing discussions with the real authorities on local real estate values — experienced agents and appraisers.

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 Barry Remington at 720.373.9297 or reach me by email at barry@superiorrealestatenews.com.

Source: LA Times article “Inaccurate Zillow ‘Zestimates’ a source of conflict over home prices”

Boulder Home Prices Hit Record Highs

Boulder Home Prices Hit Record Highs

The city of Boulder holds a unique space within Boulder County — the market in Boulder remained steady and even saw some growth from 2006 to 2012 while other markets struggled. In the last three years, prices of Boulder homes have risen by a whopping 42%. Boulder became a hot news topic this week as the average price of a 4 bedroom home in Boulder hit $1 million, putting Boulder in the top 1% of the country’s real estate markets.

Boulder County is made up of several distinct housing markets, each market growing and changing at it’s own rate. Superior has proven very competitive in the Boulder County market, with low inventories and average home prices rising by 35%. To view Superior’s growth over the last 5 years, click here.

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. 

4 Compelling Reasons to Hire an Agent for Your New Construction Home Purchase

4 Compelling Reasons to Hire an Agent for Your New Construction Home Purchase

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.


 

Superior has two new construction projects currently underway — Boulder Creek Neighborhoods’ Calmante Townhomes andRemington Homes’ Coal Creek Crossing Patio Homes

Calmante features large, luxury, low-maintenance townhomes that range from 3,000 – 4,000 square feet and are priced from the low $600,000s to the mid $800,000s. For more information on living in a Calmante home, including floor plans and community maps, click here.

Remington Homes is offering new, low maintenance patio homes from the $500,000s with 5-Start energy ratings, designer kitchen plan, beautiful master bath and many custom options. For more information, click here

If you are interested in purchasing a new construction home and have further questions, contact Barry Remington at 720.373.9297 or barry@superiorrealestatenews.com.