If your home is priced correctly, it will be exposed to the maximum number of prospective buyers and you’ll net more money. Your home will also sell faster than if it’s not priced right. If you don’t price your home right, you won’t get showings, which means you’ll get fewer offers. If you do get offers, they will be few and far-between and won’t help you net top dollar for your home.
If you don’t price right, it’s you who will pay.
If your home is priced too high, people most likely to buy it won’t see it. Most buyers receive homes by email that are in their price range and have features they want. If your home is outside their range, they won’t see it. Those who do will think it doesn’t compare to other homes.
If prospective buyers think your home is a good deal – if it’s priced similar to or slightly lower than comparable homes – they’ll come see your home in person, which is how to find a buyer.
How to determine the price
A good agent will prepare a detailed Comparative Market Analysis (CMA) for you that will include a recommended asking price for you home. This recommended price isn’t just a guess. It’s arrived at by analyzing recent and historical sales data, supply and demand information, your home’s qualities and more.
The best agents have experience and understand how the market and the economy affects buyers and home sales. Your agent may also show you homes in your neighborhood that were on the market but didn’t sell. \ Finally, if you put your home on the market today, which nearby homes would a prospective buyer also see? How are they priced and what features do they include? A REALTOR® will have access to all this data and can help you see how your home fits into the Metro Denver market overall and your neighborhood in particular.
If your home doesn’t sell, re-listing your home can cause it to be stigmatized. Don’t “test” the market – a 5% or even 10% “buffer” may have been the way to price years ago, but pricing correctly is critical in today’s market.