When it comes to Breckenridge Colorado Real Estate setting the right listing price for a home is important in a buyer’s market. Missing that window of opportunity can prove costly in both time and money. Nearly one out of five homes listed for sale in metro Breckenridge Home Market have had price cuts, with reductions averaging 7 percent, according to a first-time market survey by online real estate search site.
If you overprice by 5 percent, you are going to have to end up going below the market by 5 percent to make up for it! Overpriced homes that linger on the market cease to be the “shiny” penny on the table, requiring a larger discount to attract buyers.
Here are some tips on how to do that from day one, says Candy Snyder, Broker Omni Real Estate
• Understand the trend. When home prices are moving lower, start at just under the market rate to avoid playing catch-up. Some savvy sellers price low enough to draw competing bids, netting more than they might have by starting higher.
• Know your home. Some sellers overprice their homes because they don’t appreciate the upgrades and extras that comparable homes on the market have. Just because homes are nearby doesn’t mean they have similar values.
• Know your neighborhood. Are buyers in the area seeking a fix-and-flip or a trophy home? First-time buyers, a larger share of the market this year, want a good value without major renovations, while investors are often focused on the bottom line.
• Measure your endurance. Study how quickly homes are selling in the area, the absorption rate, and price accordingly. Some sellers price too high given their ability to wait out the market, only to surrender months later with a huge price cut.
• Don’t kill the messenger. Some real estate agents tell sellers what they want to hear. The experienced and ethical ones will suggest a price even if the seller doesn’t want to hear it. The first sell hope, the second will sell your home.
Sellers should know their maintained homes should be worth more than heavily discounted bank-owned properties, but figuring out how much is more art than science.
Psychology is another factor. Some sellers, remembering an appraisal from a refinancing two or three years ago, prefer to price on hope. And with listings harder to come by, some real estate agents will tell them what they want to hear rather than what they need to hear. Never hire a broker based on what he tells you “he or she thinks they can sell your home for”. Always evaluate the marketing plan. Simply placing an ad in MLS, posting a yard sign and printing up some pretty brochures is not much of a marketing plan. There are only two reasons a home will sell says Snyder PRICE & EXPOSURE”