Learning how to price your home is an important topic that is often overlooked. Many homeowners are surprised to find out that their home is valued by a rather large range versus an absolute price.
Host and current President of Windermere Colorado Professionals, Eric Thompson, is here to help you better understand how to price your home with a walkthrough on the three key factors that determine its value:
1: The Condition of Your Home
What we mean by the condition of your home is how your home looks. When a prospective buyer walks in the door, are they seeing a home that’s in great shape? The overall condition has a huge impact on your home’s price range and should be considered when working through how to price your home.
Consider using the below checklist to ensure your home is making a great first impression on prospective buyers to increase your home’s price range and your own selling power:
- Electrical – fully up to code
- Modern finishes – kitchen/bathroom hardware and appliances
- Recent updates – fresh paint, flooring, and landscaping
- Attractive staging – inviting and all-inclusive space conceptualization
2: Marketing Makes a Massive Difference
Why? Because no matter the instance, opinions will always be formed about a listed property — most of the time before anyone ever sees it in person — enter in perception bias. For example, it’s likely we can all recall a time where we said something along the lines of “I already know I’m going to love it” based on marketing, whether it be a restaurant’s offerings, an online product, or even a service or activity.
Great marketing can help your home make a buyer’s shortlist. Here’s how:
- Photography – of professional quality using intentional methods (drone shots, virtual tours, multiple perspectives, enhancing angles, and more)
- Presence – optimal property promotion in realtor brochures, reputable online listing sites, etc. creates a competitive advantage by raising awareness and ultimately the rate of motivated buyers called to action
- Messaging – a captivating written description of the property and its selling points
- Visibility – both with signage and through enlisting a dedicated realtor to make your property known among target markets and audiences
As a seller, do you really need all of these things? Do you need 40+ images, inclusion in promotional materials, and a trusted realty resource/representative to help with awareness? If you’re looking to improve the value of your home’s price range and help with how to price your home appropriately — you certainly do.
3: Negotiation Skills = Net Profit
Not only does negotiation influence your home’s price range initially, it also plays a big part in net profit made at the close of a sale.
However, you as a seller need to know that there are seven ways a buyer could back out of a contract (assuming no contingencies have been waived) per the Colorado-approved purchase agreement. As a result, there are three major rounds of negotiation to be aware of at any point during the transaction where the developed skills of a realtor will be of benefit:
- Initial Offer – a dedicated realtor will ensure sellers are in the best possible position to pursue a prospective buyer’s offer
- Appraisal – in most cases properties are not appraising because the market is moving at such a high pace, a realtor will work on your behalf to negotiate terms to save you money should a prospective buyer try to change their initial offer based on the findings from an appraisal gone awry
- Inspection – realtors are well-versed in the art of negotiation on both the buyer and seller sides of a transaction, so make sure you’re prepared in advance with net-saving options like a pre-inspection and more by coordinating with a professional real estate agent
In summary, partnering with a great realtor on property condition, marketing, and negotiation can help to make sure you understand how to price your home so that your home’s price range is fair and working in your favor.
Topics covered in this article are based on a recent episode from the Colorado Living Podcast — hosted by Eric Thompson and produced by Windermere Local — your hub for real, raw, and authentic insights on the Colorado real estate market. Check out the full episode on ‘Your Home Will Sell Within a Range of Value’ at the link HERE or using the player below.