Selling a luxury home is a big endeavor. If you’ve decided to put your Denver executive home on the market, then the most important decision you have to make involves setting your asking price. When people shop for homes, the price is the first thing they see. Because of this, you’ll want it to be appealing. Here are some ways to come up with the perfect luxury home pricing.
Asking Price Equals First Impression
If there’s one equation that always rings true in the real estate world, it’s the fact that your luxury home pricing will dictate the first impression people have of your home. For example, if buyers think your asking price is too high, they’ll push your home to the side before they’ve even seen it. For this very reason, it’s important to be incredibly fair – and incredibly competitive – when it comes to setting an asking price.
You might think that hiring a real estate agent seems counterintuitive if you’re trying to get the most money possible for your home. After all, your agent works on commission and will get a portion of whatever the buyer pays for your home in the end. However, studies have shown that people are more willing to pay more for a home being sold by a prominent real estate agent. This means that you’ll likely end up getting the same amount of money anyway, and your home will likely sell more quickly, too.
Know Your Home’s Market Value
Understanding your home’s fair market value can help you make better choices about luxury home pricing. The value is a balance of three different appraisal methods used in the real estate industry. These are:
- The lender’s appraisal, which helps them calculate a home equity loan or refinance;
- The tax assessor, who will determine the value of your home to calculate your property taxes; and
- Home insurers, who calculate the value of your home to set your premium.
Your home’s market value takes all of these factors into consideration. However, the fair market value is the price that you would receive if both you and potential buyers acted on your best interests after the home has been on the market for a reasonable amount of time.
Setting the Value
There are other things that you can calculate when it comes to luxury home pricing, too. For example, you can calculate the cost of replacing your home by estimating the value of the land and add the cost of rebuilding your home including any improvements. You can also calculate the income that your home generates, especially if you rent part of it out. Finally, you can also research the selling price of comparable properties in your local area and neighborhood, which can influence your choices, too.
Luxury home pricing can be a bit complicated as it requires plenty of calculations and access to information and statistics around your local area. That’s why it’s always a good idea to hire a real estate agent to help you decide how much to ask for your home.