There has never been a more important time than now to price your house right in Denver. Most people will read this and think I'm crazy considering how strong of seller's market we are in and how many offers most homes are getting the first weekend on the market, so hear me out. If you price your house correctly, you should get asking or above asking price no problem. But if it's overpriced, you are in trouble, just check out these numbers courtesy of Megan Aller with Land Title.
If you price it right to start with, you can typically expect to sell for 3% over asking price. But if it's priced too high, and doesn't sell the first week on the market, expect 1% below asking price, after two weeks, 3% below asking price and it goes down dramatically from there. This doesn't sound like a lot, but lets look at the average sales price for a home in Denver, $400,000. The difference between 3% over asking price to 3% under is $24,000. In my opinion, that's a pretty big gamble to take to "push the price" and price it higher than the comps tell you it should be at.
As an experiment, I did a general search in the Highlands from $350-500K and it revealed a total of 60 homes for sale. This is probably the "hottest" market in all of Denver so I expected there to be very few if any price drops. To my surprise, there were 18 homes who had price drops recently and most price decreases were in the range of $20-30,000. That's 30% of the homes for sale in the Highlands having to do a price drop because they were overpriced to begin with! Let that sink in for a minute. One third of all homes, in the hottest market in Denver, had to take price drops in hopes of selling. If this doesn't scream that pricing it right from the start is important, I don't know what does. This graph shows how important pricing is along all price ranges.
There are a lot of unknowns in Real Estate but numbers don't lie. Pricing your home correctly from the start has never been more important in Denver Real Estate because being on the market for just two weeks makes buyers think something is wrong with the home and getting a full price offer is almost next to impossible. Price drops help, but the property still has a stigma about it and the price just goes down from there. The best strategy remains to price your home correctly from the start and let the market adjust it upward as it will. This is just another reason to work with an experienced agent who knows the market and trends of your neighborhood. If you are thinking of selling, let us help you price your house right from the start so you can not only get the highest price, but also get to choose the most qualified buyer for a smooth transaction.
Mic Ortega
m. 303.903.3734
mic@liveurbandenver.com
www.micortega.com
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