When a Seller is ready to list their home, pricing is critical. Whether you are in a Buyer's market, a Seller's market or a very strong Seller's market, 
you need to know how to price a home correctly. When a market is experiencing a Seller's market it isn't just about what has SOLD in the last few months, we also have to look at what is currently available. You don't want to price your home so high that you don't see showings. Without showings = no offers.
Some of the items that will make a difference in pricing are -
- Kitchen remodels or refacing, new appliances, upgraded counter tops, upgraded cabinets, flooring, lighting
- Bathroom remodels or refacing - master bathrooms are more important, but all bathrooms that have upgraded cabinets, counter tops, sinks/faucets, toilets and flooring, lighting
- Flooring - Hardwood flooring gives the most credit, but laminate, upgraded carpet and tile flooring
- Windows - newer windows will give more credit
- Decks - these need to be in good condition (restained or Trex)
- Backing or siding to open space
- Views - mountain, city or water
- Over-sized garages
These two kitchens are in $900,000 homes. The values will be different.
Some of these items you may have upgraded/remodeled, but are not given much value -
- Landscaping - this is for desire, not value
- Finished basements - some credit is given (in-ground basements) plus a bathroom if finished. Walk-Out basements being finished are given more value.
- Built-ins - this is given some value
- If your home backs to a busy street or railroad, there will be a slight deduction
When looking at value, I pull all SOLD comparables in the same neighborhood and look at similar square footage to start. If the property does not have any good comparables, we can go as far as two miles+ to find a suitable comparable. This is typical when looking at rural property. The values on Zillow are usually incorrect. The county assessor is getting better in our area, but still may not be completely correct.
Using these comparables, thinking of the first list above, I make adjustments for the price. I then look at the current actives to see where this new listing will show up when buyers are looking for this type of home.
Our current market is very strong, and if a property does not have good traffic the first weekend (and is not a Holiday), within a couple of weeks I will be having a conversation about the price with a Seller.
If you are thinking of selling a home in the Denver metro area, give me a call.
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