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Wednesday, June 12, 2013

You Can’t Underprice a Home, But You Can Still Overprice It in This Market

[Published June 13, 2013, in the Jeffco editions of the Denver Post's YourHub section and in five Jefferson County weekly newspapers]

As much as I like to “talk” real estate — whether with my mouth or my fingers — I know it’s just as important to listen.  I can always learn something new, no matter how much I know about a topic.  I’m among the first to sign up for classes in areas where I’m already knowledgeable enough to teach the class.

That was the case recently when I accepted the invitation of Lon Welsh, the successful founder of Your Castle Real Estate, to attend one of his “mastermind” groups — an example, by the way, of why Lon has been so successful with that company.

The group was brainstorming about how to price a home in this seller’s market, and Lon said, “You can’t underprice a home in this market.”

I have enough examples of my own to support his statement. For example, one of my broker associates priced a 1950’s bungalow at $185,000, when I thought it could sell for $200,000.  He got 71 showings and 28 offers in 2 days, and it’s under contract for $240,000 cash with no inspection or appraisal contingencies.  If he had listed it for $240,000, it could have sat on the market and sold for less with no competing offers.

I remember another agent with a listing which became stale at $1.2 million. After a long time on the market, she got the seller’s approval to lower the price to the $600’s, and it was bid up to $1.1 million.  That takes nerve!

Twice now I have lost listings to colleagues who suggested a higher listing price than I did. The seller of the first one literally apologized for doing so after they sold it near the price I had suggested. The second listing?  It’s still available.

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