How Do You Price Real Estate In A Seller’s Market?

Booming demand and limited inventory have led to rapidly rising home values. It begs the question: how do you price real estate in a seller’s market? List prices in Steamboat are increasing at a fast pace. In 2019, the average list price of a single-family home was $1.37M, which rose to $1.79M in 2020. Condominiums and townhomes also saw growth from $633K in 2019 to $770K in 2020. Keeping these figures in mind, Realtors® recommend staying close to market value to attract buyer interest and encourage multiple offers. Aspirational sellers will often price their homes aggressively in a rising market but those homes may end up listed for longer periods. Buyers often are wary of a property that remains on the market for too long.In this market, a newly listed property can see 8-10 showings from desperate buyers within days.

Building Costs Are Running At An All-Time High

A modernized home with recent upgrades tends to sell faster. Building costs are running at an all-time high, with contractors currently booking far in advance.  As a result, it can be challenging for a new homeowner to remodel within their desired timeframe. Sellers who want to undertake improvements prior to listing should focus on appliance upgrades, declutterting, painting and staging.

High Demand Leading To Escalation Clauses

Buyers are often adding escalation clauses, which means that they will agree to pay a certain amount above other offers. Because of the high demand, sellers are less likely to accept a contract that is contingent on the sale of another property. Sellers, who price their property competitively or slightly below other homes in the market, are more likely to reap the benefits.