Determining the right price to list your property for is a balance between art and science, which is why selecting the proper Aspen real estate agent to sell your home is such an important decision.
Your listing agent needs to have a clear, concise, organized, and thoughtful strategy if you want to list your real estate at a price to sell.
Are you interested in how to price real estate to sell? Read more for a few in-depth examples of how professional Realtors go about deciding a for-sale price on real estate in Aspen, and beyond.
Examples of Good Pricing Strategies for Real Estate:
- Price to market value!
You need to list your property for a price that is close to market value. Real estate agents determine “market value” by analyzing sold comparables, otherwise known as “comps.”
- Monitor the buzz!
All Aspen real estate will experience buzz when the property first hits the market. Buzz comes in the form of calls from buyers agents, calls from homeowners as a result of the for-sale sign, visits and inquiries by Realtors during the broker’s tour (open house for Realtors), among other ways.A properly priced home will continue to see buzz until offers start rolling in. It’s important for your real estate agent to monitor the buzz surrounding your listing because if the interest and demand lessens you might want to consider a price reduction to reinvigorate the buzz. Generally, I’ve found that a property priced too high for market value will see this buzz dissipate within a week.And, offers usually come as long as the buzz continues.
As a seller, it is important to work with your real estate agent to determine your home’s market value. Then, list the property for a price that will strategically generate interest and buzz (normally, a bit below market value). This is a proven strategy that generates qualified offers for my sellers.
Examples of Unsuccessful Real Estate Pricing Strategies:
- Pricing a property to satisfy a seller’s ego is a deathstroke for selling real estate. It’s the truth.In the real estate industry, we call agents who acquiesce to a seller’s ego and price a listing well above market value “Highballers.” A highballer’s inventory usually has listings that sit on the market indefinitely. These types of properties only sell when the seller eventually realizes that a price reduction is necessary to resonate with qualified and interested buyers.
- Pricing real estate to sell has nothing to do with how much the property is worth. I’ve heard of sellers arguing with real estate agents about listing price because of the price the homeowner bought the house for. This is not a solid starting point for pricing discussions.Just because a home was purchased for $3,000,000 does not mean it can be listed for the same or more. Real estate goes through cycles, and market values must dictate sales prices if sellers are motivated to sell.
Here are a few things that sellers must remember do not create value or play a role in their sales price:
- How much a seller initially bought the property for.
- How many price reductions have already occurred.
- How much the seller wants to net (net proceeds) from the property.
- (In a depreciating market) How much the seller has spent on upgrades on the property.
- Why the seller is selling (death, divorce, court order, all of these things do not create value).
- How much time the seller has spent working on the property.
- Raising the price and calling it an opportunity lost for potential buyers.
When your home hits the Aspen real estate market you want to be sure that you get as much value out of your property as possible. So, here are a handful of tips from a professional real estate agent in Aspen that will add value to your home.
Buyers love these additions. These are fairly easy and cost-effective changes for sellers to make that will boost sales prices. Plus, these five things will increase your chances of a successful sale.
5 Tips That Will Add Value to Your Aspen Real Estate
1. Invest In New Kitchen Appliances: Whenever I walk buyers through a property they always gravitate towards the kitchen first. As they say, first impressions matter; so, consider updating your kitchen to leave a lasting impression on buyers. This cost-effective real estate tip will payoff in the long run, resulting in higher offers.
An entire kitchen remodel is not needed to leave a memorable mark on buyers, but updating appliances, replacing cabinet doors, and swapping out old hardware for new hardware are affordable ways for sellers to make a lasting impact on buyers.
Have a look at the easy updates this seller made on their kitchen. These affordable changes made for big ROI when the listing sold:
2. Buyers Love Updated Bathroom Fixtures: Little tweaks and updates to your bathrooms will go a long way with buyers. Think about updating bathroom fixtures like your sink, vanity, and faucet. Simple swap-outs will give a dated bathroom style, and resonate with buyers.
3. Energy Saving Will Add Value: Without question, adding insulation to your home is the most inexpensive way to increase your value and add to your home’s energy saving. Think about it: Sellers love learning that heating and cooling will cost them 25% less in your home. I’ve see buyers who are willing to make above-ask offers on energy-efficient homes.
4. Focus On Storage & Organization: My most successful sellers understand: “Everything in it’s right place and a place for everything.” Spend time, energy, and resources on uncluttering your home. Why? The space will look bigger and cleaner. Buyers need to picture themselves, their family, and their possessions in your home. Adding creative storage options is also a plus that will result in added value to your property.
5. Curbside Appeal Is A Real Thing: Keep your lawn green, trim the hedges, plant flowers, and spruce up your front porch. Buyers love when a property’s curbside details are memorable. And, pay attention to your property’s curbside appeal the entire time home is on the market, not just on days that the listing broker is showing your property. It’s amazing how often serious buyers will drive by the home they’re considering before making an offer, and you want your home to look beautiful every time the buyer happens to be “in the neighborhood…”
I am so excited to announce that this stunning, contemporary home just hit the Aspen real estate market.
926 East Durant Avenue is a modern, light-filled home in the heart of downtown Aspen, Colorado. With breathtaking views of Aspen Mountain, Red Mountain, and the gondola, this 3-level town home is a listing that serious buyers must see.
Other features of this beautiful home include:
- A peaceful location on a cul-de-sac in downtown Aspen.
- 2 south-facing balconies plus a large patio with private hot tub.
- An abundance of natural light throughout the entire town home.
- Enormous master suite with fireplace, large walk-in closet, and a very large master bath.
- 3 additional bedrooms.
- A 2-car carport
I am confident saying that this is one of the best properties to hit the Aspen real estate market in Aspen, Colorado’s central core.
Scroll down to view handpicked images of this home…
The living room is contemporary, light-filled, and welcoming.
The open-concept kitchen boasts updated appliances and a lot of counter space.
This is a to-die-for master suite!
Two south-facing balconies promise an abundance of sunshine.
Clean and contemporary, this town home will take your breath away.
The hot tub on the patio is an added bonus after powder days in the winter and long hikes in the summer.
How about this enormous master bathroom?
For a seller, picking the right real estate agent in Aspen to list your property with is an important decision. The term “listing presentation” is thrown around a lot, and essentially, a listing presentation is twofold:
- Sellers are able to meet with and interview a number of hand-picked real estate agents before making their decision about who to work with;
- Real estate agents are able to learn more about the client, their needs, the property, and present their plan for how to market and sell the listing.
As you know, choosing a listing agent in Aspen is one of the most important parts of the real estate sales process. Sellers and agents need to trust each other and have open communication to ensure the clients needs are met in a quality and timely manner.
So, how does a seller properly vet a real estate agent to make sure that person is the right agent to move forward with? Great question! Throughout my career as a successful real estate agent in Aspen, I have cobbled together eight questions that sellers should ask during a real estate presentation.
8 Questions Sellers Should Ask During A Real Estate Listing Presentation:
1. “Why are you the right real estate agent to sell my home?”
After introductions, pleasantries, and a tour of the property that will be listed on the market, this is the perfect question to ask a real estate broker to begin a listing presentation. As a seller, you need to know if the Realtor you’re meeting with is qualified and meets your standards for representation.
You’ll know you’re sitting down with a worth Realtor if the agent communicates clearly and concisely, and answers your question articulately. The real estate agent should present certifications to you, such as accreditations earned through the National Association of Realtors. As a seller, you need to know that this agent is knowledgeable, educated, experienced, and dedicated.
Another thing to listen for when the agent is answering your first question is the agent’s sales history and track record. Take note of how many homes that agent has recently sold, what types of properties make up the agent’s inventory, average sales price, etc.
Numbers speak for themselves, and if you’re selling your luxury real estate, you need a real estate agent who is intimate with their numbers and stats. Listen for a thorough explanation of the agent’s big wins, successful closing, sales history, and track record.
Other things to note with this question:
- Does the person you’re meeting with work full-time as a real estate agent?
- What office or brokerage do they work for?
- Do they focus on buyers, sellers, or both?
2. “There are a lot of real estate agents in Aspen, how are you different from the other local agents?”
There’s an art to answering this question that will hint at how attentive and experienced a real estate agent truly is—traits that are required to be a good negotiator. You don’t want to hear the real estate agent say they’re “better” than the competition, and you don’t want the agent to jump into a comparison between them self and other local agents. Those answers will hint that the Realtor is either arrogant or consumed with the competition.
The best thing you can hear an agent say to this question is that they are passionate about real estate and that their only focus is on the best interest of their clients. To successfully sell your home, you need an agent who approaches every single day with enthusiasm, passion, and excitement.
Listen for things like:
- Why did this agent get involved in the real estate industry?
- How does this agent delight clients?
- How many repeat clients and word-of-mouth leads does this agent generate?
- What kind of relationships does this agent establish with clients?
- How knowledgeable of technology does this agent utilize to market and sell properties?
- Does the agent find fulfillment and enjoyment in helping people sell their home and find their dream home?
3. “Now that you’ve seen my home, what would you recommend changing so that it sells?”
If you take away one thing from asking this question during a real estate listing presentation it should be: How well does the Realtor answer a challenging question spontaneously?
Remember to note these things, too:
- Does the agent cite specific features of your home?
- Are they tuned into design, architecture, lifestyle, and history?
- Do they have a clear picture of the buyer they’re trying to resonate with?
- Are they selling the lifestyle?
- Can the real estate agent tactfully and respectfully discuss touchy and personal matters without coming across as insulting?
- Does staging the home come up? Does the real estate agent have a clear plan for staging the home to sell?
The best answer, one that illustrates you’re meeting with a thoughtful and conscientious Realtor, is if the agent acknowledges your question and asks for some time to come up with a thorough staging strategy. You want an in-depth analysis about how to present your home, but that can come via email after the presentation.
A large segment of my client base is comprised of real estate investors. So, I’m always tracking trends and diving into data that’s applicable to this portion of my business. I just came across a fantastic infographic that real estate investors need to know about.
As real estate buyer demographics change, the housing market is shifting. Understanding the changing landscape of the housing market is vital to the future success of real estate investors. These changes present unique and profitable opportunities to real estate investors who understand the evolution of the housing market and strategically adapt as things shift.
First, a little backstory…
For decades, Baby Boomers have been in the driver’s seat of the housing market. In 2014, Baby Boomers—which are defined as being at least 55 years old—accounted for 244% of household growth in the United States. At each stage of life, boomers have historically dictated the direction of the housing market and established trends in real estate. There was a spike in the entry-level market during the 1970s and 1980s when Baby Boomers were beginning their real estate investments. The 1990s and 2000s saw growth in the “move-up” market, and we will continue to see increases in luxury real estate (evidenced in the Aspen real estate market) for the next 20+ years. There is a direct correlation between this surge in luxury, high-end real estate and significant wealth and high homeownership rates of baby boomers.
Here is a graph that illustrates Baby Boomers’s impact on the real estate market dating back to the 1970s and predicted through the 2050s.
Now, what does this mean for real estate investors?
“Demographic shifts are causing significant change and new opportunities for real estate investors,” says HouseCanary CEO & Co-founder Jeremy Sicklick. (HouseCanary is a new, fantastic resource for real estate data! If you’re interested in housing forecasts and real estate statistics, be sure to check them out.)
So, what kind of opportunities are in front of real estate investors and real estate developers as the housing marketing shifts? There are two terrific opportunities for real estate investors:
- For-sale residential to the aging, Baby Boomer demographic.
- For-rent residential to serve the younger, Millennial generation.
Savvy real estate investors who strategically position their developments to serve each of these thriving demographics—Baby Boomer homeowners and Millennial renters—will see a great ROI. “Success,” according to HouseCanary’s data-driven report, “requires a segmented and focused approach that responds to these market shifts.”
Check out this compelling infographic by HouseCanary that illustrates how changing real estate buyer demographics are redefining the housing market and presenting exciting opportunities to real estate investors and real estate developers who understand how to evolve.