It happened again! We RAISED the price of one of our listings in Colorado Springs to get an offer.

I know that many times the term "price change" means "reduction" - so much that " we need a price change" is almost the KLEENEX for "we need to lower the price of our home."

Read More: Colorado Springs Real Estate Answers: Why Didn't My House Sell? Part One: Price

However, a "properly priced" home for sale in Colorado Springs really just means that the home is priced perfectly compared to it's surrounding market.

Most Colorado Springs neighborhoods are subdivisions with similar homes on each street built by the same or similar builders. Finding the "right price" for homes in a relatively homogenous subdivision is not too difficult, as there are (usually) plenty of recently SOLD homes to compare it with.

Although this is true for MOST of the Colorado Springs housing market, it is not true for areas like, Old Colorado City, Westside, Southwest, Central and Midtown, Downtown neighborhoods in Colorado Springs. Why? Because these are older neighborhoods with a more diverse selection of homes for sale.

House #1:

A couple years ago, we listed a home in downtown Colorado Springs that did not sell with the first agent who listed it. We took a look at the previous asking price, studied the surrounding area real estate market and determined that it was UNDERPRICED by about $5,000.

(Search homes for Sale in Divine Redeemer and Search homes for Sale in Downtown Colorado Springs)

We raised the asking price by $5,100 and got a full price offer in less than ONE DAY on the market.

How come this happened? Wouldn't people have seen the home as a "steal" when it was priced lower?

Here are the factors that came into play for this particular home:

1. The original list price was $219,900.
   • For folks who can afford UP TO $220,000 this would be the most expensive home in their price range. Most people will not buy the MOST EXPENSIVE HOME in their price range.
   • For folks who wanted to spend, let's say $220,000 to $230,000, this home never showed up in the searches.
2. At $219,900 this home was amidst ALL KINDS OF COMPETITION, and did not have the option of standing out.
3. We looked at this particular section of this Downtown Colorado Springs neighborhood and saw that there really were NO homes for sale in the $225,000 price range. (We call this the "sweet spot" of proper pricing.)
4. We looked at the home and what it was really worth and decided that it could easily appraise for $225,000.

We listed it at $225,000 and got a full-price offer in less than one day.

House #2:

Fast forward 2 years ... We list a home for sale in the Westside of Colorado Springs about a week ago.

(Search homes for Sale in Westside Colorado Springs - Search homes for Sale in Pleasant Valley)

We sat down with our seller (the owner of the BEST family-owned, local health food store in Colorado Springs - Mountain Mama's Natural Foods) and looked at the immediate real estate market in Pleasant Valley, westside Colorado Springs. We found that her house would probably sell in the $250,000 range, but that there really was NO competition at the $255,000 mark. Based on our past experiences with "sweet spot" pricing, we listed it at $255,000 and not only did we get a slew of showings immediately, we are already looking at an offer after just a week on the market.

Sometimes the "sweet spot" is more important than "cheaper" when it comes to properly pricing a home for sale in Colorado Springs.

Read More: Selling Your Colorado Springs Home: The Importance of Proper Pricing from Day One

Posted By: Mariana Wagner - Colorado Springs Real Estate Agent - Wagner iTeam
The Wagner iTeam is a power team of Keller Williams Clients' Choice Realty,
specializing in Colorado Springs Real Estate and Monument Real Estate.

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