Even though the Denver Metro Housing Market is experiencing a big buyer's demand in a low inventory market, it doesn't mean that this is a time for you to price your home sky high to sell. When it comes to pricing your home, setting it at or slightly below market value will increase the visibility of your listing and drive more buyers your way. This strategy actually increases the number of buyers who will see your home in their search process. Why? When potential buyers look at your listing and see a great price for a fantastic home, they're are going to want to take a closer look and more apt to make an offer. When this happens, you are more than likely setting up a scenario with multiple offers, potential bidding wars. This has been happening in our area and offers are being accepted that are higher than the original listing price. At the end of the day, even when inventory is tight pricing it right - or pricing to sell immediately - makes a BIG difference.
Here's the other thing --- homeowners who make the mistake of overpricing their homes will eventually have to lower the price after it has been sitting for an extended period of time. This leaves the potential buyer to wonder it the price adjustments were due to something being wrong with the home when in reality nothing was wrong ... other than the initial price was too high.
Now, let's answer, "when is a good time to sell my home?" Many think that spring is the best time to place their home on the market. What they don't realize is if every homeowner believes the same thing, then that's when they'll have the most competition. The housing supply has shrank and tends to this time of year, the choices are limited creating a prime opportunity for you as a seller.
A Q4 2019 survey conducted by the National Association of Realtors indicated that 75% of people surveyed indicated that they believe now is a good time to sell their home. In the case of those with a yearly salary of $100K and higher, the results jumped even higher coming in at 82%. The survey also divided the results by generation as shown in the graph below:
As you can see, many believe that now is a great time to sell a home. The current inventory is half of what we need for a normal or neutral housing market. Essentially, where there is less than a 6-month supply of inventory, we're in a seller's market and will see greater appreciation. Between a 6-7 month supply is a neutral market, where prices will increase at the rate of inflation. More than a 7-month supply means that we are in a buyer's market and can expect depreciation in home values.
The takeaway: Inventory of homes for sale is sill well below the 6-month supply needed for a normal market. If you are going to sell, now may be a time to take advantage of the ready, willing and able buyers who are searching for your house to be their dream home.
If you are thinking about selling your home now or later this year, let's get together so we can outline the price of what your home would sell for and maximize demand from the start. Give us a call for your free, non-obligatory consultation @ (720) 305-0757.