It was a fair question.

On paper, the two homes looked very similar. They had roughly the same square footage, the same number of bedrooms and bathrooms, and were located in the same neighborhood.

But on paper is only where the pricing conversation begins.

Every Pricing Analysis Starts With Comparable Sales

Every Realtor should begin by looking at comparable properties, commonly called “comps.”

We look at many of the same basic characteristics an appraiser will consider, including:

• Location
• Above-grade square footage
• Finished basement space
• Number of bedrooms and bathrooms
• Lot size
• Garage spaces
• Age and style of the home
• Recent sales in the neighborhood
• Property condition and quality of the finishes

These details help us identify which recent sales are most relevant. But finding homes with similar statistics does not mean they should all have the same value.

Fannie Mae requires appraisers to consider the market’s reaction to differences between a property and its comparable sales. In other words, adjustments should reflect what buyers are actually willing to pay for those differences, not a generic formula or rule of thumb. Read Fannie Mae’s appraisal guidance.

That is also where an experienced, active Realtor brings additional value to the pricing process.

Similar on Paper Does Not Mean Equal in the Eyes of a Buyer

When this seller compared his home to the one I had recently sold, I went through the listing photos with him one by one.

The square footage was similar. The bedroom and bathroom counts were the same.

The biggest difference was the condition of the homes.

The recently sold home had an updated kitchen. His kitchen had not been touched in approximately 30 years.

That is not a minor adjustment.

A major kitchen renovation can cost tens of thousands of dollars, and a high-end project can easily reach six figures. The 2025 Cost vs. Value Report estimated the national average cost of a major midrange kitchen remodel at approximately $82,800 and an upscale remodel at more than $164,000. View the Cost vs. Value Report.

That does not mean a seller automatically adds the full cost of a renovation to the home’s value. Renovations rarely work that way. It does mean buyers recognize the difference between a move-in-ready kitchen and one they will need to renovate after closing.

Today’s buyers are not only comparing square footage. They are also calculating the cost, time and disruption required to make a home work for them.

Knowing the Neighborhood Matters

Comparable sales are essential, but there is also real value in knowing the neighborhood and being actively involved in the current market.

I want to know:

• Which homes received multiple offers
• Which properties required price reductions
• Which updates buyers paid more for
• Which features received the strongest showing feedback
• How condition affected the final sale price
• What competing homes looked like in person
• Whether current buyers are prioritizing move-in-ready condition or accepting projects

A spreadsheet cannot always tell you why one home sold quickly while another sat on the market.

Sometimes the difference is the kitchen. Sometimes it is the floor plan, natural light, lot placement, nearby traffic, quality of the updates or how the home was presented.

Understanding buyer behavior helps me interpret the comps rather than simply average them together.

Why I Would Not List Both Homes at the Same Price

I could have agreed with the seller and listed his home at the same price as the updated property.

But that would have been doing him a disservice.

A new listing receives its greatest amount of attention when it first enters the market. The first two weekends are especially important because the home is new, buyers receive listing alerts and agents are deciding whether it belongs on their clients’ showing lists.

If buyers see a home priced like an updated property but discover that it needs substantial work, many will not make an offer. They may wait for a reduction or move on to another home.

Once that initial attention is gone, sellers often find themselves chasing the market through price reductions.

The problem is that reductions do not always bring back the buyers who dismissed the home the first time. A property that sits can also create questions:

• Why hasn’t it sold?
• Is there something wrong with it?
• How much further will the seller reduce the price?
• Do we have room to submit an even lower offer?

In some cases, the final sale price can end up lower than it might have been if the home had entered the market at a more supportable price from the beginning.

Pricing Correctly Does Not Mean Pricing Low

Strategic pricing is not about choosing the lowest number or trying to create an artificially quick sale.

It is about positioning the home where buyers see the value.

That requires balancing:

• Recent comparable sales
• Current competing listings
• Property condition
• Buyer demand
• Neighborhood activity
• The seller’s timing and financial priorities

The right price should make sense to buyers while still protecting the seller’s ability to achieve the strongest realistic outcome.

The Value of an Active Realtor

Most Realtors can pull comparable sales.

The greater value comes from knowing how to interpret them.

A Realtor who is actively showing homes, reviewing buyer feedback, monitoring price reductions and negotiating current transactions has a closer view of what buyers are responding to right now.

That matters because the market can change faster than closed sales reflect. A home that sold two or three months ago may have gone under contract in a different competitive environment.

My job is to explain those differences honestly, even when the answer is not what a seller expected to hear.

You make the final decision about your home. I will make sure you have the information needed to make an informed one.

If you are considering selling your Arvada or Denver-area home, I would be happy to prepare a property-specific pricing and market analysis for you.