Determining an asking price for your home can be tricky. Highly priced, you could risk not being considered by potential buyers. If priced too low, you “leave money on the table” – something no seller wants to do.
A listing agent will provide a current market analysis to the seller to help determine the initial asking price. The agent will research comparable homes to see how your home compares to others recently on the market and show the price they sold for. This allows for accurate placement of your home on the market relative to the exact market conditions in your area.
Professional Realtors know how to gauge this process and have experience in how the game is played. The “comparables” are homes that are similar to yours in style, size, location, age, etc.
Realtors can accurately determine the best asking price for the home. This is tricky in Durango, because we have very few tract homes – those built by the same builder, the same year, in the same location and of similar size.
Even when using comparables, other factors such as remodels done to the home, sun exposure, road noise, driveway access, location and size of master suite, etc,, all must be taken into consideration when determining the price of your home relative to others that are similar. An agent familiar with the area contributes invaluable expertise and advice that a service like Zillow cannot provide.
Everyone knows that buyers will always try to negotiate down. For that reason, the seller is tempted to set the asking price higher than what he or she will actually sell the home for. However, this could eliminate some potential buyers from considering your home. For instance, if you list your home at $525,000, when you would consider $499,000, buyers looking for homes under $500,000 may not even look at your home – when really you would sell for $495,000. This will cause you to lose maximum exposure.
Again, in Durango, there are very few real comparables because of the absence of tract homes. Your Realtor can provide an accurate estimate of what your home will appraise for and come up with the best price to test the market.
If you have no activity, listen closely for feedback and adjust accordingly. Most likely, the home is priced too high. The best strategy is to move the price down in timely increments to “find the market.” The motivation of the seller will determine the amount and frequency of price reductions.
If the property is valued out of the high-demand price range, it will take longer to attract a buyer. Another important component in determining the asking price is current competition. If a seller is motivated, pricing lower than the competition will produce more activity.
A Realtor can help sellers place their home accurately in the current market, so they can sell with the confidence that they have obtained the maximum value for their property.
Kelly Kniffin is a Realtor with Legacy Properties West-Sotheby’s International Realty in Durango, and a past president of the Durango Area Association of Realtors. She can be reached at Kelly@homesdurangoco.com