How important is pricing in the current Denver Real Estate Market? The simple answer, extremely important. I speak with lots of sellers, and even lots of agents who think pricing isn't that important because the market is so hot right now. I hear all the time, we are going to push the price and see what we get. And while I understand why that is tempting after hearing all the time about the sales records Denver Real Estate keeps breaking, it could possibly be the worst strategy you could take for selling your Denver home.To back up my argument, I will turn once again to some incredible statistics provided by Megan Aller with Land Title. She put this graph together and it shows just how important price is to getting top dollar for your Denver home.
Homes that are priced at market value are selling for 1% over asking price in the first week they are on the market. If the house doesn't sell in the first week, it sells for 99% of asking price in the second week. If it makes it to the third week before selling, then it will sell on average for 96% of asking price. And if it makes it longer, to two or three months, then you are looking at 95% of asking price.
While those percentages don't seem too far off, they do add up. Take an average sales price of $400,000. If it sells in the first week, you are looking at $404,000. If it makes it to the third week, then $384,000. That's a difference of $20,000 in just three short weeks! This is why pricing it correctly to start is so important. If it is under priced, the market will say so and it will get bid up. But buyers, while desperate, are also educated now and aren't going to blindly throw money at overpriced listings making it even more important to price it right from the start and to work with an agent who knows your market.
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