Strategic Pricing Strategy
Buyers are the only people determining a home’s value.
Most agents simply run a Comparative Market Analysis (CMA) and come up with a list price solely on this information. While I do strongly take into account CMA data, I take it another step further and also factor in market conditions, neighborhood trends, & your personal needs. This allows us to determine whether we should price a property with current comparable data or at a higher/lower price to ultimately drive the most traffic to your home. Using a more strategic pricing strategy takes the following into account:
Comparative Market Analysis: A CMA is essentially how much similar properties in the same or nearby neighborhood recently sold for. Also factored in is the list price of comparable properties that are currently active & under contract. The following criteria is used: Properties plus or minus 10% of your square footage, homes with similar features such as the number of bedrooms/bathrooms, number of stories, basement completion (if applicable), etc… Additionally, we factor in properties in similar condition when determining your homes market value.
Neighborhood Trends: After obtaining the price range for your home, I look at your neighborhood’s market patterns. I”ll determine the absorption rate in your area (the average number of sales per month by the total number of available homes), what the average time is to sell, and what the list price vs. the sold price was for these properties. Also factored in is the time of year you are selling. Having an agent who is in tune with the ever-changing Denver Metro market is crucial when determining the right price for your home.
Needs & Expectations: Do you need to sell the property quickly or do you care more about getting the highest price possible? These are often competing interests & we need to price the property according to your situation, while factoring in where buyers see the value.
This information collectively determines a more accurate price range for a property than just a simple CMA alone. By taking the extra steps to analyze the additional factors, we are able to price your property competitively, help you get the most for your property, & set reasonable expectations prior to listing.
Things that have little or no impact on assessing your home’s value:
The price a seller originally paid for the property
The proceeds that a seller expects to net
The dollar amount spent on improvements
What websites like Zillow or alike say
It is important to determine a list price where the buyers see the value. When buyers see value, it attracts more buyers to your listing.
At the end of the day, my clients have the final say in not only what the home will be listed at, but what offer you’re willing to accept. It is my job to help guide you so you have all information and may make a more informed decision for what is best for you.