Getting the Most Value when Selling Your Home
$400,000 and under portion of the Colorado Springs Real Estate market:
One frequently asked question posed to our group of Colorado Springs Realtors from our sellers is… Will my house sell if we list it at whatever we want, since we thought the market was the strongest it has ever been?
Like any good question, especially one that is focused on gleaning the most value from a potential home sale, there are several variables to consider. Yet, I want to focus on what’s really important to get the most value out of your home when selling it.
First of all, what is the nature of the Colorado Springs Real Estate market in the price range under $400,000? Quite frankly, the narrative is oftentimes sizzling with multiple offers that are over asking price and are coupled with quick sales. The price range of this market comprises about 4/5’s of our market and now has pinned up demand due to its historically low inventory of homes.
When buyer demand increases with lack of inventory, then the perfect storm occurs to drive home values upward. In fact, during February this year, the actual sales price eclipsed $301,000, which is the highest value placed on residential properties that I have witnessed over my 20-year real estate career.
With the frenzy of higher prices happening within this segment of the market, many sellers believe that their homes are worth much more than they ever imagined. And why not, especially when there is misinformation found on various home estimate programs or when gathering speculative real estate data from national experts? And as a result, many sellers do not want to either stage their home or add any remodel upgrades to their home before selling it. Also, sellers may think that they do not need to do repairs to their home prior to listing. The general attitude is that the market will drive the most value for the home sale.
Nonetheless, overpriced listings do not follow the course of the market frenzy; most of them will remain stagnant in a marketplace full of motion.
The reality about the real estate market is that it doesn’t function on pure subjectivity, nor is it fully governed by fear due to low inventory. Another factor to consider about home values is the appraised value. Because in reality, most homebuyers require a mortgage to purchase their home and an appraised value oftentimes becomes the final figure within the actual sales price. This is also where repairs come into play. Safety and security items left undone in a home most likely will not pass a VA or FHA appraisal.
In my opinion, a thorough strategy needs to be prepared before you sell your home. That is what we are here to do for you. Through this process, we not only consider the items to repair, upgrades to get you the best price, comparative market values, and personal economic strategies, just to mention a few things.
As a general rule, the better your home is well taken care of, and the more improved your upgrades are in your home, typically, this type of residential property will be compared more favorably among your housing competition and the more likely, the appraiser will be able to assess a higher value on the square footage of your home. Subsequently, the higher the value of the square footage equates to a higher value on your home.
Even within the craziness of having low inventory, I believe it’s best to either stage your home or to make the proper remodel considerations that will help to boost the greatest value on your home when selling it. Let us help you decide what is right for your unique listing experience.
By: Cherise Selley