Your Home's First Price Should Be Its Best Price
The Importance of Location in Pricing Strategy
The pricing strategy for a luxury home in an affluent neighborhood will not be the same as what one would use for a starter home in one that is working class. This said, the Colorado Springs market can be red hot, with certain homes selling within days if not hours, sometimes with multiple offers when similar homes in the same area sit on the market for months at a time, even expiring. Because 60% of potential buyers will look for property at or near market value, it’s critically important to price your home correctly from the beginning. Strategies such as pricing your home above market "to see if anyone will bite" then dropping in price in thirty day intervals may have the the effect of it being on the market too long, often resulting in having to sell it below market value due to buyer’s decreased perception of value.
The Best Pricing Strategy
Setting sale price based on what you paid, the mortgage balance or a set profit margin can be a costly mistake. Instead, use the guidance of a qualified comparative market analysis (CMA) which will be based on what homes that are similar and in the closest proximity possible to your home.
It may seem contradictory, but there's even reason to consider pricing your home slightly below value in segments with multiple offers, which tends to generate offers that exceed asking asking price in a buying frenzy similar to what happens at public auctions.
With so many variables to consider in accurately pricing your home, it is most important to get expert advisers on your team to make the process as seamless and profitable as possible.
For a more detailed report and insight, please download our comprehensive guide to Selling Your House to the right.
The Axiom Realty Team at Fathom Realty is a full service residential brokerage in Colorado Springs, CO. Contact Norberto Villanueva for your personal consultation and fast results.