Determining Market Value Selling And Buying Crested Butte Home

Determining Market Value is equally important to a buyer and a seller. What is a home worth? The real answer is it is worth the price a buyer is willing to pay, and one a seller is willing to accept. This may sound trite, but it is a fact. For the seller, it only takes one buyer, and for the buyer, there may be only one home that is their perceived dream home. But what really goes into determining market value and what do you do with the information?

Sellers vs. Buyers

Some sellers want to focus on how much it cost them to design and build the home. They focus on what they paid for the home, or how much money they have sunk into remodel projects. This is interesting information, but the market will usually dictate the relative value of any home.

Buyers don’t care that a seller bought at the top of a market cycle. They don’t care how much a seller paid for a property, how much a seller “has in” a remodel project, how much the seller’s mortgage is, or how much a seller “needs” to net from the sale. Buyers want The Most For the Least. It is a price war and a beauty contest, and as a seller, you have to win both.

Pricing Crested Butte Home

Once a home is put up for sale, most sellers are motivated to sell their home as soon as possible and at the highest possible price. Pricing a home correctly is the single most important factor in determining if a home sells quickly, or at all.

Location and quality are key in determining price. Whether it is a buyer’s or seller’s market and the inventory of similar properties for sale will also impact the price (supply and demand). The best data to help determine market value for a particular home is to look at what similar properties have sold recently, and if they are really comparable.

As a buyer, you may love a home, but not the price. Is the price justified given the market? You will be relying on your agent for guidance here. As a seller it’s also important to rely on your real estate agent. This is another reason it’s so important to find the right real estate agent for you. I get clients who ask me what I think – if I have done my job and all the info is presented to the seller, I say let’s go over the data again, and ask what  the market telling us. In either case, access to all current property information is essential and can be helpful to justify your asking price to a buyer or justify your offer to a seller. 

Factors in Determining Market Value for Sellers

What is the market value of your home given the current real estate market? Have you gotten an appraisal? Did you contact two or three real estate agents up front to get their Broker Price Opinion (BPO)? How many “similar” homes have sold in the past twelve months at your price point? How many have sold at your price point, and in your area? What is the median home price? What is the average home price?

How long will it take your home to sell? What are the average days on market (DOM) for homes that have sold, and DOM for those still for sale? How many competing listings are currently in the market that are similar? Are you prepared to sell your home given the current market? Or will you want to set a high price on your home to “test the market” for a while? These are all the things that will help determine the market value of your Crested Butte home.

Determining Market Value Selling and Buying Crested Butte Home Final Thoughts

If you would like to know more about determining market value of your Crested Butte home or how the Crested Butte Market is doing contact me directly.

I hope you see the level of detail and time and effort I put into this candid article Determining Market Value Selling and Buying Crested Butte Home.  I have become a Top Real Estate Agent in Crested Butte by helping my clients to make informed decisions.

This is representative of what you can expect from me as your agent.

If you’d like to use my knowledge and experience in Buying or Selling your Crested Butte home – call me.

Thanks,
Chris.

How can I help you with your Crested Butte Real Estate Needs?

The Crested Butte Real Estate Market is very active. Click this link to see my monthly Crested Butte Real Estate Market Reports.

Chris Kopf
Global Luxury Property Specialist
Coldwell Banker Bighorn Realty
(970) 209-5405, or chriskopf@bighornrealty.com