A few tips can help homeowners price their homes for a successful sale.
First, analyze past sales in your neighborhood and check out similar homes in other neighborhoods.
This can be difficult in the Durango and Bayfield areas because many of the homes built in La Plata County were built individually on site, meaning neighboring homes are often far different than yours. That is why Zillow’s Zestimates only work well in neighborhoods in cities where builders offer several floor plans but basically the same finishes.
In the local market, adjustments must be made to adequately compare homes. A savvy seller will adjust for the size of a home, its condition, any significant remodeling, the parcel size, location, views and landscaping. Once these adjustments are done, a determination of value can be reached. That is just the first step, though, because the value is based on past sales, not the current market.
So, the second step involves looking at the current market itself. If there are a large number of homes in the market similar to yours and only a few sales, you will need to be more aggressive in pricing your home. But, if there is big demand for homes similar to yours and there are just a few homes on the market, you should price yours higher than what the last similar home sold for in your area. If the supply and demand of homes is in balance, the market price of your home should be similar to ones that recently sold.
Third, think hard before pricing a home over key price points. You will attract fewer buyers as your sales price increases. For example, the number of sales from $1 million to $1,050,000 is 79 percent below sales for homes priced between $950,000 and $1 million.
Fourth, price your home close to your expected sales price. In La Plata County, the average sales price is usually about 97 percent of what was being asked. This 3 percent reduction in list price can change depending on market conditions. If there is a large inventory of homes for sale and few buyers, negotiated prices are more likely, and there will be a lower percentage of sales versus list price.
Don Ricedorff is a Realtor at The Wells Group in Durango, spokesperson for the Colorado Association of Realtors and past president of the Durango Area Association of Realtors. He can be reached at don@durangorealproperty.com.
