Dale and I have known for sometime that inventory has steadily been decreasing the last quarter of 2011. Well, MLS stats report that home inventory, right now, is down by over 30% in the Denver metro area than past years at this same time. Interest rates are low low low, banks are lending and buyers are in the market place. If you are considering selling - now is the very best time to put your property on the market. Many people think spring is the best time because the flowers are blooming and the grass is green - but the buyers who want to move this spring and summer are looking right now.
In our office we have what we call "Power Wants and Needs". For the past several years they have been consumed with SELLER related needs. Below is a list of this past week's Power Wants and Needs:
• Buyer looking in Denver/Observatory Park/Bonnie Brae/Lowry/Hilltop for a home with a main floor master or nice main floor bedroom suite, price up to $1 million.
• Buyer looking in The Preserve/Cherry Hills/Greenwood Village for a home in the Cherry Creek school district. Age 2000-2011, price up to $1.4 million.
• Buyer looking for a Cherry Creek North townhome up to $525,000, 2 bedroom. Tuscan finishes.
• Buyer looking in Bonnie Brae/Cory Merrill for a ranch. Wants lot & location, going to build/remodel.
• Buyer looking in Observatory/Hilltop/Country Club/Bonnie Brae for 4+ bed/4+ bath, 3-car-garage, 7,000 sq ft. lot
• “In Town” Buyer up to $850k 3 bed minimum 3-car-garage, newer home preferably
• Buyer wants a Cherry Hills Village lot, preferably 1 acre up to $1 million
See any consistency? Buyer needs this, buyer needs that … that means, we need some SELLERS!
There is no doubt the market has not completely recovered … There are still soft prices in some areas, still foreclosure and short sale opportunities. Sellers still must follow some basic Seller 101 Tips. However, with rates as low as they are and inventory down – now is undoubtedly the best time we have seen in a long time to be a seller.
Everyone's real estate dream is to “sell high” and “buy low”. In reality, that time never really exists in the same market at the same time. However, it has become true that right now is a time you can “sell fair” and still “buy low”. What a great way to head into the new year!
So … if you do want to be a seller right now – keep in mind a couple of basic Seller Tips that will help you obtain a fair sales price quickly!
#1 Price it right from the get-go
In most cases, the old-school strategy of real estate sellers holding out for a better offer will be brushed off by most homebuyers simply because there are still some short sale opportunities and because the buyer’s mindset has not quite shifted to be a seller’s market quite yet. According to the National Association of Realtors sellers accepted less than 90% of their asking price and properties took on average 4+ months to sell. Buyers still believe this to be the case – so, pricing you property fair from the get-go is still the best and most efficient path to a sale.
#2 Put your best footage forward
Dress your home up for the ball. Prep, paint, stage, scrub, improve,repeat. Efforts can include caulking, plastering, planting flowers, adding potted plants, making the windows spotless, pressure washing that oily driveway, edging the walks, trimming the bushes and trees and mending the fences. None of these is excessively capital-intensive, but when applied en-masse, they say "buy me” first.
#3 Be flexible
We are not suggesting you bend over backward to accommodate potential buyers, you should also bend forward and sideways too. The low inventory and low low low rates are contributing to the fact you should “sell now”; however, they have not created a seller’s market quite yet. Be prepared and know your bottom line, be willing to offer extras: contributions towards closing costs, pre-paid property tax credits, remodel work, pre-paid HOA fees, etc. Just something to go the extra mile and to give the sale of your home an edge in the market. Additionally, be willing to listen to feedback and adjust where you can.
#4 Trump and delegate your techno-fear
Hire a listing agent steeped in mobile platforms. Sellers and buyers are routinely using Facebook and other social media to sell and seek, not to mention dozens of online selling sites. Some agents (like us!) are even making YouTube videos to showcase their homes, making it easier to quickly link topotential buyers via email. There's also an abundance of smartphone apps cropping up to review real estate listings and refine searches. Don't worry - April & I have this one covered!
There are other items to be considered in the purchase or sale of a home. This may well be the year to make the move! Inventories are shrinking, and rates are low. If you have ever wanted to sell at a fair value, and buy at a fair value, that window has opened!
April & Dale
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