We can’t emphasize enough the importance of accurately pricing your home. Even in the current Colorado Springs market where inventory is low, there are homes that have been sitting on the market for 50+ days. These listings are in some of our city’s most coveted neighborhoods.
Because they are overpriced, and buyers know it.
Even when buyers love a home, they are hesitant to insult sellers with a realistic offer that will appear to be a lowball offer to the seller. Further, buyers don’t want to begin a purchase process on the wrong foot with their seller.
To demonstrate this point, let’s look at an example.
John is selling his beautiful home in Old Colorado City. It’s a 3 bed, 2 bath home marked with charming character. It is in need of repairs, but it’s a gem and has fantastic views of Pikes Peak.
Kim and Mark have just moved from Utah. They are looking for a home to start a family. They love Old Colorado City, and John’s house is exactly what they are looking for. The problem is, the home is overpriced according to their experienced agent and compared to other homes they have viewed. John’s inexperienced real estate agent lists his home for $20k more than comparable houses in the neighborhood because he’s eager for the business.
Kim and Mark are left in a bind – they are living with in-laws so time is important to them. While they don’t want to insult John with a reasonable but low offer, they love his home and need to find a place quickly. John begrudgingly accepts the offer, but only because the house has been on the market for more than two months and he wants to wrap up the sale.
During the inspection, Kim and Mark learn some costly foundation issues need attention. In a typical real estate negotiation, they would be able to work with the seller to lower the listing price or work repair costs into closing. But rewind, John is still upset about the purchase price. He feels that because he had to drop his listing price already, he should not have to pay for repairs. Further, the appraisal has come back and states that John’s home is not worth as much as his agent led him to believe. Kim and Mark feel he should honor the appraisal price. John says no. Kim and Mark are forced to walk away and start their search again. Everyone has wasted time, and both parties are left unhappy.
This is the exact scenario we do not like for our clients to endure. This entire situation could have been avoided if John had worked with an agent who helped him accurately price his home. This is why, at Woodleaf Realty, we are so adamant about using proven strategies to figure out the price for your home. Accurate prices lead to timely sales and money in your pocket.
If you are planning to sell your Colorado Springs home in 2018, let’s talk about how to choose your listing price. Give us a call today.