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A Better Listing Strategy
to Get the Most for Your Denver House

May 9, 2024

A couple articles ago, we shared a common listing strategy many Denver area home sellers initially think is the best strategy to get the most for their homes. In that article, we shared why the strategy of starting your list price high isn’t actually always a good strategy. In this article, we’re going to share, in our opinion and experience, a better strategy to help you net the highest amount for your Denver area home. Although our track record with this strategy tells us that it is a great strategy, many home sellers find it a hard one to commit to. The strategy that TK Homes has used and usually recommends for most Denver area home sellers is starting the home slightly lower than where we think the sales price could end up.

You can understand why this strategy is hard to commit to. The old saying goes, you can always come down, but you can’t go up. However, it’s important to understand and believe why this strategy works. There are two major reasons this strategy works and actually helps you net more money at the closing table.

 

1. Initial Interest and Offers

 

This strategy starts working in the seller’s favor right from the beginning. By being a little bit low, you will usually see increased showings for the home. Increased showings mean higher likelihood of overlapping showings. When buyers see other buyers interested, it increases their own interest, the idea of if someone else wants it, so do I. A higher number of showings increases your chances for offers. Increased chances of offers increases chances of multiple offers. By having multiple offers, you have the ability to negotiate an increase in the sales price and better terms for things like appraisals, inspections, closing, and possession. Right from the beginning of your transactions, you’re in a better position than if you started the price higher and weren’t getting showings or multiple offers.

 

2. Inspections and More

 

Regardless of how many offers you receive or what you’re able to negotiate when going under contract, every buyer is going to do their home inspections once under contract. Right now, we’re seeing buyers being very picky when it comes to home condition and often asking for a higher number of items. This is the most common period a transaction will terminate. If the buyers know there were multiple offers and lots of interest in the property, they will be more likely to keep their inspection items limited to major health and safety, the items any buyer would ask for or terminate on if they weren’t addressed. This means that as a seller you’re able to save additional money by not having to address some condition items or give credits for older appliances or systems. The concept is the same with an appraisal. In the event it comes in lower, a buyer is more willing to bring the difference between a low appraisal and the purchase price if they know the seller has options to go with another buyer.


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These are two very real and very good reasons why starting a home’s list price slightly aggressively ends up netting sellers willing to trust this strategy more money at the closing table. The best thing you can have when selling your home is multiple offers to choose from. This scenario allows you to have the upper hand when negotiating items such as purchase price and inspection items.

At TK Homes, we understand that starting your home a little lower than you feel it should sell for can feel like a risk. However, our track record and experience within Denver’s real estate market tell us that this risk usually pays off big and will actually allow you to net the most money at the closing table.

If you’ve thought about selling your Denver area home and want to work with agents that know how to net you the most money at the closing table, contact us today. We’re excited to have the opportunity to show you how our selling strategies can work for you to help you get the most for your home.

 

 

 

~ Written by TK Homes CEO/REALTOR®, Trevor Kohlhepp

 

 


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