Determining Price When Selling Your Crested Butte Home
One of the most complicated things can be determining price when selling your Crested Butte home. It can be tough to look at the market objectively when you are a seller. It is common to believe your home is better or more valuable than other similar homes and will sell quickly. The challenge is to price your home “in the ballpark,” even if a bit high to start, but to have a realistic perspective. If you don’t see the activity in terms of showings, and positive feedback, then you need to be prepared to reduce your price or wait for the market to rise to your price.
Key Factors in Determining the Price of Your Crested Butte Home
There are several things to keep in mind when determining price when selling your Crested Butte home. The goals for every seller are clear, but having the data and being honest about the price your home will fetch given the market is key to getting it sold. Depending on your holding costs, selling your home in two months at a lower price vs. a year later at a higher price may yield a higher net to you.
This concept is so important that it’s worth repeating: selling your home in two months at a lower price vs. a year later at a higher price may yield a higher net to you.
Put pencil to paper and use the information below to understand what your carrying costs and opportunity costs are. There are no certainties, but below are some questions that will help you to make an informed decision.
- Obtain the highest price.
- Sell the home sooner vs. later.
- What similar homes have sold (comps)?
- What similar homes are for sale that are competing for the buyer’s offer?
- Is the market rising, falling or flat?
- Cost Per Month – What is the total burdened cost to hold the home per month? E.g. mortgage payment, taxes, utilities, HOA fees, property management fees, snow removal, weekly landscaping, weekly hot tub cleaning, maintenance, repairs, etc.
- Estimated Days on Market (DOM) in months = _______?
Right now in the Crested Butte market in 2018, the DOM for sold single-family homes is 222 days, or around 7 months. So to calculate your total carrying costs while selling your home, use this formula.
Total Carrying Cost per month $________ x Number of months ________ = $______________ (total carrying cost).
This is where it will become clear to you how important it can be to sell your house for a lower price in two months rather than a higher price a year from now. Chances are you will lose more in carrying costs than you would make from a higher offer.
- What would the seller do with the use of the monthly carrying cost money?
- What would the seller do with the proceeds from the sale of the home?
Necessities for a Seller to Make an Informed Decision
It can be very difficult because many sellers are obviously attached to their home, but it’s important to maintain an unemotional perspective. You need a good real estate agent who will give you clear and candid input and you need to be able to listen to them. A good real estate agent will provide you with accurate market data as well. If you are willing to pay for it, an appraisal from a certified appraiser can be very helpful. As a third party you will be able to trust that the appraiser is giving you a fair and honest value of your home. Accurate carrying cost numbers are also essential in helping you in determining price when selling your Crested Butte home.
Finally, you need to answer these two questions:
- Given the market, what do you think someone would pay for your home today?
- What would you pay for your home today?
Determining Price When Selling Your Crested Butte Home Final Thoughts
I hope you see the level of detail and time and effort I put into this candid article Determining Price When Selling Your Crested Butte Home. I have become a Top Real Estate Agent in Crested Butte by providing my clients with information and insight. This helps my clients to make informed decisions. Some decisions are not always easy.
This article is an example of what you can expect from me as your agent.
How can I help you?
I have over 30 years of sales and marketing experience and am a top real estate agent in the mountain town of Crested Butte, Colorado representing affluent clients who are buying and selling their homes and properties. To see featured properties or search the MLS – visit chriskopf.com.
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