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What Price Should We Market our Home For?

By
Real Estate Broker/Owner with House to Home, Inc. - Denver Real Estate - 720-231-6373 DRE# ER40011786

Over the last several years, it has been a very strong Seller's market, and the Sellers are definitely driving the bus!    With that being said, when you ask the homeowner what they believe their home is worth, oftentimes they answer with a price WAY over the fair market value!

Maybe they are comparing a home in the neighborhood to theirs, but the one sold had 200-300 square feet more than their home has!   This makes a huge difference.   Maybe they were on a site that gives "estimates", but is WAY off.    Maybe even looking at the assessor's value, can be wrong.

The only way to arrive at a fair market value is to look at the properties that have sold that are a similar style home and square footage.   (you shouldn't use a ranch to compare to a tri-level home)  If there are none to compare, then an adjustment will need to be made.    

Bottom line, when you list at a fair market value, the buyers will most likely bid it up, and this will be THEIR decision.   When a homeowner lists too high, the buyer is already on edge.    The buyers are more willing to put up an appraisal gap amount if it is THEIR idea.     If you list too high, not only will this affect your showing amount, but also the offers you receive (or no offers received).

Posted by

Joan Cox
Broker/Owner, REALTOR®
House to Home, Inc.

Serving the Denver Metro area including all suburbs


Helping Buyers and Sellers achieve their real estate dreams, one house at a time!

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Comments (18)

Roy Kelley
Retired - Gaithersburg, MD

Prospective home sellers are in very good hands when they seek your professional real estate advice and assistance.

May 28, 2022 05:32 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Joan - regardless of conditions (whether it be a market or a road) having a skillful driver behind the rule can make a significant difference

May 28, 2022 05:40 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

I have had a few sellers that told me 200 to 300square feet is not that big a deal and that their home should sell at the same price (all other things equal).  After I remind them that is a whole extra room, they usually understand. 

I think it is good advice to let the buyer's bid homes up in this market and let it be their idea.

May 28, 2022 06:03 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Roy, I hope so, but my client base is not excited to list their homes.

May 28, 2022 06:07 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Michael, you do make a valid point, and like to think my Sellers are in good hands.

May 28, 2022 06:07 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Ray, that is what I think, if the buyer wants to pay more, then it IS their decision.

May 28, 2022 06:08 AM
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

I always love when they say...the one across the street sold for XXXXX. I pull it up on my computer to find out that it either sold for 30k less (the neighbor lied) OR the house is 400sqft larger than their home. When I do the dollar per sqft math for them they so...oh, I get it. LOL

May 28, 2022 07:08 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

That is exactly the advice I've given my clients in the past two years to price their homes... don't go for the highest price up front. Let them bid it up and cover an appraisal gap. It's worked very well for my sellers.

May 28, 2022 07:11 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Jeff, I so agree, the public doesn't get the price per SF!

May 28, 2022 07:28 AM
Eric Bouler
Gardner Realtors, Licensed in La. - New Orleans, LA
Listening to your Needs

Great Saturday for you. Have a great Summer. You do get a lot of comments..

May 28, 2022 07:29 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Nina, and everyone feels like there is a WIN-WIN for both sides.

May 28, 2022 07:32 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Thanks for stopping by Eric.

May 28, 2022 07:33 AM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

That is the reason that sellers hire a professional such as yourself to tell them all the data on houses that I’ve already sold so they can make a informative decision Joan 🧐.

May 28, 2022 11:03 AM
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Joan,

Nice timely post.  It is getting to that time when some neighborhoods or markets are a little softer than just 2 months ago.  So we have to have those hard talks with our clients.

May 28, 2022 01:22 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Paul, they do need to hear how we come up with the prices we suggest.

May 28, 2022 01:33 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Sheri, it is softening, and Sellers need to be careful on the price they list at.

May 28, 2022 01:33 PM
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

People in your area would be wise to listen to your advice on what price the home should be marketed for.

May 29, 2022 05:59 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Brian, just as long as they don't take Z estimates as fact!

May 29, 2022 07:41 AM