Nationwide, it’s normal for 13% of sellers to reduce the price of a home before it sells. Last spring, we noticed price reductions were increasing, so we started tracking them locally.
In May, sellers had reduced the price of 16% of homes for sale in Westminster, 20% of homes for sale in Denver, and 32% of homes in Highlands Ranch.
Today, those numbers are much higher. In some parts of town, there are more homes with price reductions than in August. Sellers continue to over-price their homes and underestimate how much the market has changed since summer.
Why is it best to price right when your home first hits the market?
Zillow reports, “Less than 1 in 4 homes that take longer than 1 month to sell end up selling for their initial list price or more.” In other words, if your home lingers on the market, it’s over-priced. You’ll almost certainly have to reduce the price to find a buyer.
When prices are falling, over-pricing is even worse for sellers. If your home is over-priced the day it goes on the market, it’ll be even more over-priced two weeks later when prices have declined. So you’ll end up chasing buyers with price reductions.
The chart below compares the market from four months ago to today. It shows that sellers still have unrealistic expectations about the market. For a fast sale for top dollar, set a price at or slightly below market value. (For more information about pricing right, watch our video.)
| City | TODAY: Percentage of Homes for Sale Reduced in Price |
IN AUGUST: Percentage of Homes for Sale Reduced in Price |
| Highlands Ranch | 56% | 57% |
| Castle Rock | 50% | 54% |
| Lakewood | 52% | 53% |
| Littleton | 54% | 50% |
| Arvada | 50% | 49% |
| Thornton | 47% | 49% |
| Broomfield | 53% | 48% |
| Westminster | 48% | 47% |
| Aurora | 52% | 47% |
| Denver | 48% | 44% |
| Longmont | 38% | 40% |
| Boulder | 32% | 37% |
Here are numbers by county.
| County | TODAY: Percentage of Homes for Sale Reduced in Price |
IN AUGUST Percentage of Homes for Sale Reduced in Price |
| Douglas | 51% | 53% |
| Jefferson | 51% | 49% |
| Arapahoe | 53% | 48% |
| Broomfield | 53% | 47% |
| Adams | 48% | 46% |
| Denver | 48% | 44% |
| Larimer | 42% | 41% |
| Weld | 44% | 40% |
| Boulder | 39% | 40% |
Thinking about making a move?
Contact us now to get expert guidance. Call 720-782-2468 or schedule a time for us to call you.
Schedule a CallMetro Denver Real Estate Market Activity
During the last week:
New Listings – 651
Back On Market – 206
Price Increase – 115
Price Decrease – 809
Pending – 1026
Withdrawn – 226
Closed – 804
Expired – 283
Previous Week:
New Listings – 697
Back On Market – 252
Price Increase – 73
Price Decrease – 943
Pending – 949
Withdrawn – 259
Closed – 967
Expired – 649
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Based on data from REColorado®
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