Pricing Strategies for a Rising Market

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by Osman Parvez

The writing is on the wall.      Boulder real estate inventory (supply) is at record lows and sales volume (demand) is rising.   It's not a short aberration; the inventory trend is more than a year old. and the sales volume trend is at least six months old.   There is a high probability that prices will be higher this spring and summer.  My analysis shows it clearly.

In typical real estate cycles, prices rise quickly during an upswing and drop slowly (sticky) on the downside.    We may be entering one of those "quickly rising" periods of market activity. 
 
Advising my sellers on a price strategy that maximizes value and minimizes risk is one of my strongest value adds as a listing agent.   In most cases, the research process is laborious and time consuming.     Analyzing the market for a specific property requires more than just pulling up the latest comparable sales,  it requires obsessing over the details and closely tracking the competition during the listing period.    Anything less is guess work and hand waiving.    You might as well use Zillow.

Pricing Strategies for a Rising Market

Let's talk about it.   As a seller, what strategy should you use when you price your property?

Here's a chart showing four typical approaches to pricing in a rising market.    The chart includes some of the pros and cons of each.    Further discussion will follow in future blog posts.    Click on the Strategy Label in the sidebar for more.


Shopping for a Realtor?  Keep in mind that pricing is just one component of a comprehensive marketing strategy.   Other key components include staging, professional photography, utilizing the most effective marketing channels, and expert negotiation skills.     If you'd like to interview me to list your home, please call me at 303.746.6896.


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Please note:  My goal is to provide exceptional service to our clients. The ideas and strategies in this blog post are the opinion of the writer at the time of publication. Careful and complete due diligence is strongly advised before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.