If you’ve bought or sold a home, you know all about comparable properties; often just called “comps .” Comps are properties that have sold recently and are similar in size, location, age, features, and condition. We use comps to determine the ideal asking price for a home we’re marketing. When we represent buyers, we look at comps to determine what to offer.
During the past year, sellers throughout the Front Range have been pricing homes 10% or even 20% higher than comparable sales would indicate they should. Those homes would still sell – and often for more than the asking price.
That time may very well be starting to pass. Homes that are priced too high are lingering on the market. Instead of looking at what the comps indicate and then adding 10% or more, smart sellers should price close to the most recently sold comparable properties. If demand is extremely high, the market will correct for the slightly low price.
In real estate, time is your enemy. You may think you can reduce your price again and again until you find a buyer, but that strategy will almost certainly net you less money than if you price right at the start. Buyers know how long a home has been on the market and will offer less the longer a home has been sitting unsold. Some buyers won’t even look at your property! They’ll think something is wrong with it. Interested buyers will want to negotiate because they suspect sellers are getting desperate after so much time on the market.
It’s important to be realistic when setting the price of your home right now. If you’ve interviewed three agents and they all told you a similar price, don’t try to hunt down one who will tell you a higher price. The market is still great. It’s a great time to sell a home, but to get the best price and to sell quickly, you must set a price closer to the price of the most recent comparable sales.
Ready to make your move? Click here to schedule a call. We’ll help you determine the best pricing strategy for your property.
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