I can’t begin to tell you how important it is to price your home right the minute you put your home on the market. This is probably the most commonly made mistake between seller and Realtor that leads to a property that sits on the market day after day, month after month, with no offers to show for it. I want to give you some examples of why pricing your home right is so important in todays’ market.
While showing clients around North Park Hill this past week I noticed a gem of a home. Built in 1954 and completely remolded. I mean this home was fantastic. I took a look at the history of the home and noticed that while it was a fix and flip it was put on the market at $310,000. For North Park Hill this price point seemed extremely high. As of last week when I showed the property they had reduced the price of the home to $234,000 that’s a $75,000 dollar price cut. Why?
Anyone who knows Park Hill knows that Martin Luther King is the dividing line between North Park Hill and South Park Hill. The agent on this particular property did not. While an identical house, same square footage, finishes, and floor plan sold a block south of MLK for $300,000 it was in fact south of MLK. That’s the difference and it’s a huge difference. It’s such a big difference that it has cost the seller 7 months of being on the market and has put them in a weak position compared to any other listing in North Park Hill moving forward.
Pricing your home right doesn’t take rocket science but it can be tricky too. When looking at fix and flips throughout the Denver Metro I’ve noticed that just about every fix and flipper for the past seven months has priced the homes too high to start. The majority of fix and flip homes have had to take price reductions anywhere from $5,000 to $35,000 in order to move the home. Had the sellers of these properties priced their home right out of the gate they would have saved time and money instead of chasing a market.
Pricing your home right is the single most important thing you can do to sell your property. It doesn’t matter how beautiful for the home is, how many special features it has, how great the location is, the most important thing is price. If you price too high you’ll sit on the market and begin to look stale. New buyers will ask their agents, “Why hasn’t this property sold”? It becomes a nightmare of re-pricing the home to fit this ever changing market, fighting the “bad rep” of a stale home, and ultimately you’re trying to not look like a weak listing compared to everything else that’s selling around you.
When it comes to pricing your home let the Colorado Dream House Team help you. Let us show you what other homes are selling for and how yours compares. Let us help you price your home right to begin with so you aren’t chasing the market and putting yourself in a weak selling position.