If you’re like many people, you know that selling a home in Aspen takes a lot of work. Your real estate agent will handle all the heavy lifting for you, including helping you settle on the right price. And make no mistake: pricing is incredibly important when you are trying to sell a home. In some cases, pricing a home a little bit below market value can spark a bidding war and result in even higher profits for the seller. But how do you know when to underprice, and does underpricing your home mean you’ll actually make more? This guide explains.
Does Underpricing Your Home Mean You’ll Actually Make More?
Many people find that pricing their homes just a little bit under market value can reel in prospective buyers. You may get a full-price offer right off the bat. It’s up to you whether you want to accept the offer, but once someone has made an offer at your listing price, you can’t say, “Well, I was hoping you’d pay more – can you pay an additional $5,000?”
When more than one buyer is interested in a home, competition often results. Sometimes the buyers even attempt to outbid each other, resulting in a much higher sales price – and most sellers consider that a win.
However, it’s important to remember that every situation is different. You should follow your real estate agent’s guidance on pricing your home properly.
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What About Pricing High and Letting People Negotiate You Down?
On the other hand, overpricing your home – even if you really feel the price is justified – can result in the home sitting on the market, unsold… for months. That’s because most buyers begin searching for homes online. When you search for homes online, you can set price parameters for your search; that means you can look at homes that are listed between $550,000 and $600,000 with just the click of a button.
Let’s say your real estate agent tells you that your home is worth $599,000. However, you feel that your home is worth at least $625,000, so you choose to list it at that price. When a buyer comes along and sets the price parameters to max out at $600,000, they’ll never even see your home – it won’t show up in their searches. There won’t be anyone to negotiate you down on the price; the people who can afford it won’t be able to see it.
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What Happens When Your Home Gets in Front of the Wrong Buyers?
A buyer who sets their price parameters between $600,000 and $650,000 will see your home. But here’s the problem: Your home, which people are most likely willing to pay just under $600,000 for, is going to be up against homes that are truly valued at $625,000. That means yours is going to come up short.
To fully understand this, you need to know how a real estate agent figures out how much your home is worth. First, the agent will pull data that shows all of the homes in the same area that have recently sold, those that are currently on the market, and those that were on the market but were removed because they failed to sell. Then, after comparing location, home amenities, size and features, your real estate agent will be able to zero in on the price that buyers are currently paying for homes that are a lot like yours.
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Are You Selling or Buying a Home in Aspen?
If you’re ready to sell your home in Aspen, Woody Creek, Basalt, Carbondale or Snowmass, we may be able to help you.
Get in touch with us right now to find out how much your home is worth – and discover how we’ll be able to help you sell it quickly and for top dollar.
If you’re also looking for a home for sale in Aspen or a nearby community, check out our listings by price:
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