What a Crested Butte home is worth?
I get the opportunity to work with both Buyers and Sellers in the Crested Butte Real Estate market and a common question is what a Crested Butte home is worth? This discussion and comparison with clients gives me a unique perspective on Crested Butte home values and the perceptions of the individuals who end up on either end of these transactions.
My goal as the agent for my clients is to help the process go as smooth as possible. One of the ways I help to do this is to provide clients with insights and data so they can make informed decisions.
As I always tell my clients “I will not be cavalier with your money…”
So what a Crested Butte home is 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. 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. This is true whether it is a “buyer’s or seller’s market”. 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 Crested Butte home for sale is to look at what similar properties have sold recently, and to ask if they are really comparable?
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 suggest we review the data, and see what the current Crested Butte Real Estate market telling us. Access to all current property information is essential and can be helpful to justify your asking price and give you the Seller comfort when negotiating with a Buyer.
Buyers Don’t Care…
Buyers are looking at the Current Market – they have choices in other homes and want to get the most for their money. It may sound harsh, but…
- Buyers don’t care that a seller bought at the top of a market cycle.
- Buyers don’t care how much a seller paid for a property.
- Buyers don’t care how much a seller “has in” a remodel project.
- Buyers don’t care how much the seller’s mortgage is.
- Buyers don’t care that a seller has an old appraisal with a higher value than current market.
- And Buyers don’t care how much a seller “needs” to net from the sale.
Again – this is interesting information, but the market will usually dictate the value of any home.
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*.
*Unless it is a “Seller’s market” with a lack of inventory and excess demand.
How Showings can be an indicator of Value
For sure there are many more buyers at the low end of the market. Even a home that is a “steel” that costs $4,000,000 in Crested Butte will be out of reach for the majority of buyers. In general if a home is priced to the market and appeals to a large subset of buyers, then it should get good activity of showings. The Crested Butte Real Estate Agent community also has the influence to show or not show a home – and if the perceived value of the home is well below the market, or there are visible “issues” with the home, this will negatively affect the number of showings.
If you are a Seller – What Is Your Crested Butte Home Really Worth Today?
What is the market value of your home given the current real estate market? Have you gotten a current appraisal? Have you had a real estate agent provide a detailed market valuation of your home?
In Crested Butte we typically don’t have many transactions at any price point – but good to look at 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?
Competing Crested Butte Homes 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?
I don’t find too many Buyers who call me and say: “Find me an average home, but I will pay above market for it.”
Some sellers may say: “I don’t have to sell…” or “I don’t need to sell my Crested Butte home, but if someone comes along and wants to pay me above market for my home, then I will sell”? If this is a Seller’s position – they will probably be waiting a while to sell…
Asking Price vs. Selling Price Percentage of Crested Butte Homes
What is the percentage difference between the Asking and Selling price for the same type of properties in your market in the past year (i.e., all single-family homes)? If you are on my Newsletter email list and read my Crested Butte Real Estate Market Reports you know that I have a detailed page showing this info broken down by property type an location.
It can be enlightening to narrow this analysis to all similar single-family homes in your area or neighborhood or subdivision and similar price range and look at the past year. If there are enough transactions, the timeframe should can be narrowed to six months. This will tell you about the market and what you should expect as an average discount from asking to selling price.
Summary – What a Crested Butte home is worth?
There are some sellers who have a “make me sell” number in their mind – it may not be realistic given the current market, but if the seller is willing to be patient then this strategy might pay-off.
As well, there are some Buyers who have been searching and searching for their dream home, and when they find that perfect home or property, then they might determine the opportunity cost of continuing to search, and not find another home is worth moving forward and getting it under contract now vs. coming back later to find it has gone under contract or already sold.
Looking at all the variables above should help you make an informed decision regarding What a Crested Butte home is worth. You may also take a step back and look at the big picture to identify patterns and trends that may provide some additional insight. The data may help you determine if you are looking at a rising market or falling market, and given your timeframe what value means to You?
How can I help you with Your Crested Butte Real Estate Needs?
This post What a Crested Butte home is worth? and my monthly market reports on Crested Butte Real Estate, and the level of detail is representative of what you can expect from me as your Real Estate Agent.
I have consistently been among the top real estate agents in Crested Butte, and I strive to exceed client expectations.
Existing Crested Butte Homeowner – If you are interested in finding out what your property is worth, or may be considering turning a chapter in your life – contact me today.
Considering Buying a Crested Butte Home for sale – If you have started thinking about how great it would be to have your own Crested Butte Home and are considering me to represent you as a Buyer, I would appreciate the opportunity to earn your business!
For more info on me and the Crested Butte Real Estate Market – Visit www.chriskopf.com.
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Previews® Property Specialist
Coldwell Banker Bighorn Realty