Small: How to get the best price when selling your Aspen-Snowmass home

Small

Since the coronavirus pandemic hit back in the spring of 2020, the Aspen-Snowmass real estate market has changed quite dramatically. We went from a market that was fairly well balanced between buyers wanting to buy into the Aspen-Snowmass area and sellers looking to sell, to one that currently heavily favors sellers. We’ve seen prices accelerate to record levels and available inventory decline to historic lows. During the past 20 months, we’ve seen a record 195 luxury properties priced over $10 million change hands in the Aspen-Snowmass area. That’s roughly four times the average annual sales volume for $10-million-plus homes prior to the pandemic.

As a property owner who is now thinking about selling, how do you make sure you get the best price possible in the current market? ­Understanding the current market dynamics and evolving market trends is the key to making sure you get the best price in a reasonable period of time. Although you may believe you are well read in terms of the real estate market, unless you are actively involved day to day in the market there are likely aspects of how the market is trending that you may not be aware of. Like hiring any professional advisor, hiring the right real estate professional can make all the difference in reaching your goal of getting the best price when you get ready to sell.

Just because a friend or neighbor sold a property for a certain price doesn’t necessarily indicate that your property will sell for a similar price. Your property for various reasons could be worth significantly more, or perhaps less. The key is to understand the factors that will impact the value of your property. It is important to conduct your own due diligence, however, be prepared to take the advice of a trusted real estate professional. The key factors to understand are the location of your property to the rest of the market (i.e. more favorable or less favorable), size and the condition of the property — is it newer or older, style, configuration and amenities.

Once you’ve looked objectively at these various characteristics of your property, the next step is to research the rest of the market to see what similar properties have sold for in the past year and how many similar properties are currently on the market. The one unique aspect of real estate is no two properties are the same. There may be ­similarities but no two are identical. Past sales of ­similar properties in comparable locations will give you a ballpark idea what value range your property would likely fit into. The next step is to research what’s currently on the market for sale that’s similar to your property. If you’re selling a condo in downtown Aspen or Snowmass, then this process is easier than a single-family home in one of the many neighborhoods around the commercial cores. This gives you an idea of how many other properties in your category your home would be competing with.

The next step is to determine the absorption rate and the velocity of the market for your type of property. This means how many properties similar to yours have sold in the past 12-24 months and how long those properties were on the market before they sold. From that information you can calculate the frequency of buyers looking for your type of property in your price range over a certain period of time. If the frequency is high, your property — if priced correctly— could sell relatively quickly and you could perhaps receive multiple offers. If the frequency is low, you can expect a longer marketing period with fewer offers. On top of this information, you look at how the market is trending. Is the market getting stronger or is the market slowing as evidenced by the direction of the overall market sales volume and average number of days that properties are on the market?

From this research, you and your real estate professional should be able to make a reasonable projection of your home’s value in the current market, as well as the time it will likely take to sell your property. You can also look for ways to enhance the value of your home by doing key renovations and engaging a staging professional to improve its curb appeal. Studies have shown that well-thought-out renovations and staging can ­increase the value of a property by two to three times the money spent on the renovations and staging. Once you’ve considered all these factors, you should have a fairly good idea of the likely sale price range. To achieve your highest price possible on the sale, the asking price should be set 5-10% above the value you’ve determined from your research to give you a negotiating margin. Proper pricing along with a well thought out marketing program should guarantee you’ll receive the best price in the current market when you’re ready to sell your Aspen-Snowmass home.

Lori and William Small, CCIM are recognized luxury and commercial real estate experts with Coldwell Banker Mason Morse in Aspen. They can be found through their website theSmallsaspen.com or by email at thesmalls@theSmallsaspen.com.

From this research, you and your real estate professional should be able to make a reasonable projection of your home’s value in the current market, as well as the time it will likely take to sell your property. You can also look for ways to enhance the value of your home by doing key renovations and engaging a staging professional to improve its curb appeal. Studies have shown that well-thought-out renovations and staging can ­increase the value of a property by two to three times the money spent on the renovations and staging. Once you’ve considered all these factors, you should have a fairly good idea of the likely sale price range. To achieve your highest price possible on the sale, the asking price should be set 5-10% above the value you’ve determined from your research to give you a negotiating margin. Proper pricing along with a well thought out marketing program should guarantee you’ll receive the best price in the current market when you’re ready to sell your Aspen-Snowmass home.

Source: https://www.aspendailynews.com/business/small-how-to-get-the-best-price-when-selling-your-aspen-snowmass-home/article_13d7b5ea-87b8-11ec-a57f-0bbf0e2964d0.html

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