When deciding to sell a house, the first thing that often crosses a consumer’s mind is pricing. How much is my home worth? What is the right pricing strategy to sell my home quickly and for the most money? Pricing is one of the most important factors to consider when entering the real estate market and can also determine whether or not the sellers will reach their real estate goals.
Over the past few months, home prices in Denver Metro have been on the rise, which has benefited those putting their homes on the market. LIV Sotheby’s International Realty’s (LIV SIR) September Market Report shows that average sold prices for homes have risen by 5% through September of this year, in a year-to-date comparison to the same time period in 2019. This increase is the result of the incredible demand for homes in the area paired with the low inventory of available properties. These trends have created the perfect storm of buying and selling circumstances.
“Denver is a healthy market,” exclaimed Terry Oakes, a broker with LIV SIR “People are moving here in droves and interest rates are at an all-time low. This combination has driven prices upward.”
While it’s true that residential real estate prices are on the rise, homeowners interested in selling their house can’t simply name their price. The stakes are high when figuring out how to price a home. Price is influenced by much more than just how big a home is and it’s important to take all factors into consideration.
“It’s a common misconception that size always directly correlates to price. Square footage doesn’t solely determine the value of a home,” explained Georgia Gallagher, a broker with LIV SIR.“So much more goes into a home’s value such as the layout, the finishes, the condition that the house is in, and the location.”
To the untrained eye, these details might seem insignificant, but to an experienced real estate professional, the little things can make all the difference.
Brokers also have the ability to quickly compare a home to similar properties in the area and find a baseline for pricing and what the market will accept. From there, they can advise their clients on how to calculate the value of their home according to the listings’ features and the clients’ own financial goals.
“Having the right data is crucial,” said Ron Martinez, a broker with LIV SIR.“As a broker, I have all of the technology and information I need at my fingertips to accurately price a home. On top of that, as a local expert, I can take other factors, like the neighborhood and proximity to amenities, such as shopping and dining, into consideration.”
Inaccurately pricing a home against a real estate professional’s advice can drastically affect a property’s outcome in the marketplace. The consequences of pricing a home too high or too low can range from losing money on the sale to not being able to sell the home at all; both of which could be equally as devastating to the seller.
“Overpricing a home often extends the amount of days it spends on the market, which can lead to the home appearing ‘tired’ in the eyes of buyers,” commented Oakes. “Pricing a home properly as soon as it hits the market is key to a successful transaction.” Inaccurately pricing a home against a real estate professional’s advice can drastically affect a property’s outcome in the marketplace. The consequences of pricing a home too high or too low can range from losing money on the sale to not being able to sell the home at all; both of which could be equally as devastating to the seller.