For the first half of the year, listed home prices in the Denver metro meant little, as many sellers received offers tens of thousands over their list prices within days or even hours of putting their homes on the market.
But after rising interest rates helped cool the sales frenzy, sellers are again required to work with their agents and put some thought into pricing and marketing strategy.
Felecia Montoya with 8z says sellers will need to be more realistic. “Sellers got used to picking a number and throwing it at the wall and 99% of the time they would get it or an even better price,” she says. “Now we need to be more strategic.”
The change has been challenging for some sellers. “They need to understand they won’t get a stack of offers that first weekend,” says Amy Terry with 8z.
Setting the price
Malisa Eakins with West+Main says realtors need to work with their clients to manage expectations.
“First you need to help them understand what the rising interest rates mean for the potential buyers’ purchasing power,” she says. “The increased rates created a hard shift in the market.”
Sellers need to work with skilled realtors who know how to use the available tools to help set the price using:
Days on market How many showings before a home goes under contract Pending sales Sales of similar properties and neighborhood properties
Terry urges sellers to look at other homes as if they were buyers. “Take a look at the competition,” she says.
Barry Willmarth with Willmarth Real Estate Services recommends sellers focus on homes with similar floor plans, square footage, age, condition, and proximity. “Stay in the neighborhood if you can.”
Putting your best foot forward
With more homes on the market, sellers need to ensure