Realistic Sellers Sell Their Houses
January 25th, 2012 categories: Selling Strategies
A few days ago, I showed a house to a motivated couple who want to find their next Denver home before Valentine’s Day.
They liked it, and decided they might make an offer. Being savvy buyers, they asked me to give them an analysis of other properties that had recently sold around the listing they were considering.
I also pulled the history of the listing, and we found that the house had been on the market for 10 months, with two different real estate brokers. I called the current broker and asked him a few of the usual questions, when do the sellers want to close, is there anything we need to know, etc.
Then came the shocker. The broker said, “I’d suggest your buyers not low ball the price, these sellers don’t have to sell.”
Wow! They’ve endured showings for 10 months, kept the house in show-ready condition, and expected their broker(s) to work hard on the marketing. You almost wonder if that For Sale sign means anything?
I’ve heard sellers tell me this same thing in listing appointments, “I don’t have to sell, so I won’t take anything less than my price.”
Sellers Beware! You may not sell your house if this is your attitude. Don’t expect a professional broker to come in armed with her analysis and years of experience, only to tell her you’ll decide the price. Pricing is not an exact science, and it’s definitely a collaborative effort with sellers’ motivation factored in, but don’t throw out the baby with the bath water. Pay attention to the data if you really DO want to sell your house.
There are times when the initial analysis needs adjustment based on the ever moving barometer of closed sales, and the broker doesn’t always nail it the first time. In certain instances an initial market analysis might actually be a little high, and downward adjustments are warranted. If the seller and the broker can collaborate based on a new analysis, it will be a much better working relationship than one based on a seller dictating the price without credence to the market. If the price is low, you’ll know by the bidding war that ensues. If the price is right, you’ll sell quickly without a lot of drama.
Buyers won’t offer you what you need. They won’t offer you what you put into it. They won’t offer you what you owe. They’ll offer you what their own analysis suggests is a realistic price – less some negotiating factor. Buyers don’t walk in and over pay because you have your house on the market and you’re a nice, deserving person. In fact, you’re reinforcing their decision to go make an offer on the competition.
Sellers – if you don’t have to sell, then your house isn’t really “on the market.” Save yourself months of grief and frustration. Save me and my buyers some time, please. Thank you.
Gretchen Faber works with buyers and sellers in Metro Denver’s luxury home market, as well as in-town neighborhoods, new construction and corporate relocations. Check out all the Metro Denver listings at www.GretchensDenver.com.
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Denver is THE Top Real Estate City for 2012
January 15th, 2012 categories: Real Estate News
Have you seen this recent news report about Denver real estate?
Denver is cited as the number one city to invest in real estate by Greg Rand of Own America.
Watch the clip as Greg covers the metrics that influenced his decision:
- Lifestyle and livability
- Relatively low unemployment as compared with the national average
- In-migration of people relocating to Denver
- A foreclosure rate that is half the national average
- A young population
- Low cost of living
- Fresh air
- 9 Fortune 500 companies and growing
Denver isn’t a secret any longer. The city is no longer a “cow town,” although you can attend the National Western Stock Show once a year to see cows and wear your boots.
We have a world famous art scene, great restaurants, bike trails and parks. Oh, and the mountains out back.
Come visit, and plan to stay. You’ll want to make your home in Denver!
Are you relocating to Denver? Check out area homes for sale on my GretchensDenver real estate web site. Contact me if you’re visiting and want to look for your next home.
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Denver Among Top 10 Healthiest Housing Markets
November 21st, 2011 categories: Real Estate News
Recently, Builder Magazine listed Denver as among the top 10 healthiest housing markets in their “Healthiest Housing Markets: Mid-2011 Update.”
We’ve been experiencing such low vacancy rates for rentals, that much of what’s driving home sales is investor interest. Investors are willing to take a risk on our market and are snapping up good rentals. With investors getting back in, more buyers will feel confident in the coming months.
Builder Magazine says permits for new construction look to double in 2012 and Denver has added 20,000 jobs this year. Our foreclosure crisis hit much earlier than much of the nation, and we’ve seen a large decline in foreclosure numbers.
Add to that, several large corporations have chosen to locate their headquarters in the Denver Metro area, including, DaVita, Arrow Electronics and Vestas. The announcement last week that the Niobrara Oil Field could contain 1.5 billion barrels of oil fueled speculation that growth will continue in our oil and gas industry (no pun intended).
The Denver real estate market is humming, and will continue to gain steam in 2012.
Gretchen Faber, LifeStyle Denver author, is a local Denver real estate broker. Contact Gretchen about listing your Denver area home for sale or looking for that perfect Denver home.
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Denver Real Estate Statistics | September 2011
October 31st, 2011 categories: Market Trends
Real estate in Denver has picked up steam during September and October. The summer was hot and dry, the fall has been brisk. Under contracts are up over last year.
Inventory is still extremely low, and buyers are finding it difficult to get into the house of their dreams without making some concessions. But sellers with any sort of perceived flaw in their home are nonetheless finding themselves waiting for an elusive offer. The perceived flaws that hold today’s buyers back are location issues, lack of updates and price.
Those are just a few of the reasons why such a profound lack of inventory still isn’t translating into higher prices. We have 7,347 fewer homes on the market from the same time last year, yet prices are still down 2.63%.
Another factor is that showings are bulking up at the $200,000 to $400,000 price point. A reflection of investors buying up rental properties. With vacancy rates hovering at only about 1%, it’s a crazy good time to own rentals.
If you’re a seller, don’t even think about taking your house off the market for the holidays. The shortage of inventory plays to your favor, particularly if your house is priced between $200,000 and $400,000.
Buyers can use this time of year to negotiate. Just make sure you do your research. Not every listed home is over priced. And if you’re not finding what you’re looking for, you’ll see an increase in your choices by mid-January.
Search homes in all neighborhoods and research sales statistics at www.GretchensDenver.com. Gretchen Faber’s real estate web site.
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Denver Colorado Real Estate Statistics | July 2011
August 21st, 2011 categories: Market Trends
A recent trip to India for a real estate conference slowed down my blogging for the past month. It’s great to be back in Denver, where we’ve had a hot and dry summer, after a rainy and cold spring.
Real estate ownership and sales are very different in India, but in some respects there are many similarities. Limited supply and high demand create high prices in areas like Mumbai, and the headlines while I was visiting were all about the high prices leading to issues of lack of affordability.
We visited one 3 bedroom condominium in a nice area of Mumbai that was renting for $20,000 US per month. It was lovely, with slab granite, tile and wood finishes and baths for every bedroom. It wasn’t over-the-top amazing, though, and didn’t have much of a view. And it was less than 3,000 square feet.
Back to Denver reality.
Prices for Denver single family and condos combined are improved by a bit from a year ago, and are up from last month. This time last year, average price was up year over year by more than 6%, so we’re on our way to digging out of the hole in specific neighborhoods and price points.
We’re also up over 17% in number of closed sales from last year. The flurry of market activity in 2010’s first two quarters set the bar for recovery, and Denver’s real estate market continues to incrementally improve. More good news – under contract properties increased nearly 12% from last year.
Month over month shows weakness, with every category except number of active listings and average price taking a tumble.
We’ve been on another economic roller coaster the past two weeks. A time of opportunity for property investors. Rates will continue to be historically low for many months. If you’ve considered buying an investment property, you should do it soon. A trifecta of low rates, home prices still low and rental vacancies at record lows. Investors are shifting into real estate for a good reason.
Look for your next home or an investment property at www.GretchensDenver.com. Gretchen Faber’s home search site.
P.S. did you know that the world’s most expensive single family property is in Mumbai? We drove by it several times, and it’s quite a sight to see. Check it out!
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Denver Colorado Real Estate Statistics | May 2011
June 9th, 2011 categories: Market Trends
We’re finally comparing Denver real estate sales this year with the time after the tax credit ended last year (for under contract properties.)
The number of homes under contract jumped 23% from May of 2010. This is the first month in 2011 where we’re not comparing under contract data to the tax credit time of 2010.
The average sale price for both single family and condo are up over 3%, reflecting stability in the market. While the recent Case Shiller numbers for March indicated a potential “double dip” housing recession, the Denver real estate market is truly hanging in there.
Sellers are realistically pricing their homes, Buyers are taking advantage of the drop in interest rates to incredible lows, and more investors are entering the market and snapping up properties for their portfolios.
Inventory continues to fall, which is one reason prices are steady, even rising. Buyers aren’t finding as many homes to choose from, so the great ones are going fast. The number of days on market fell nearly 3% from April. Days on market were dramatically less a year ago, perhaps an overhang from the tax credit frenzy that was wrapping up at the end of April 2010.
The Denver real estate market may be contracting in terms of number of available listings, it’s not contracting based on the buyers making offers on homes. With a 23% increase in under contract properties, we should see the number of June closings rise considerably. Stay tuned!
Consider an investment property. With prices and rates at an all time low, it’s a great time to buy a rental. Search Gretchen Faber’s web site at www.GretchensDenver.com.
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Denver Real Estate – Double Dip, Single Dip?
May 31st, 2011 categories: Real Estate News
Today’s S & P Case Shiller Report proved interesting to more than just real estate junkies. The highly-watched, monthly index of housing prices showed a double dip housing recession in many U.S. housing markets.
Denver bucked the trend. Barely. We’re not in a double dip – this month. At least not with this most recent report (showing data from March 2011.) Denver prices were down 3.8% over March of 2010. In February 2009, our low point, prices had fallen 5.7% over the prior year.
The S & P Case Shiller is a composite index of 20 MSA’s (Metropolitan Statistical Areas.) There are thousands of cities, towns and neighborhoods that are not factored into this report. Real estate is so specific, that your neighborhood could be up 2-5% from the low, and it could be down 50% from the high. These reports are informative because they give you a gauge of where Denver (or your area) fares against other cities.
The Case Shiller is two months behind, and our MLS usually publishes their data by the 10th day of the following month. That also gives us a good, broad spectrum assessment of the market, but again isn’t specific to your neighborhood.
It will be interesting to see how Denver stacks up in the next Case Shiller. We’ll have to wait until the last Tuesday of June to see if we remain ahead of the “double dip.”
This is a great time to be a Buyer! Don’t miss out on terrific housing affordability. Check out available homes at www.GretchensDenver.com – Gretchen Faber’s Denver housing web site.
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Denver Colorado Real Estate Statistics | April 2011
May 24th, 2011 categories: Market Trends
Denver real estate is always interesting. With April statistics out a little later in the month than usual, and a recent business trip, the April report is finally here!
And… what do we see?
- Inventory is unusually low for the Spring. This could impact prices in future months, if Buyer demand improves and inventory stays low, prices will improve.
- Prices are flat and down from last year. Not a surprise since we’re still recovering and last year’s tax credit generated high demand.
- Under contract properties jumped in a big way over March 2011. A good reflection that Buyers are finding what they’re looking for and executing contracts.
- Home closings dropped from April 2010. That tax credit frenzy last year. Closings are up from March 2011, which shows we’re in a more typical Spring market.
The year 2011 is proving to be pretty much as we thought. Steady. There are no surprises. The well-priced homes in great condition are selling, and often in under 90 days. Buyers are conservative and still want bargains. Mortgage rates are extremely favorable, and jumbo loans are easier to obtain than a few years ago.
All in all, it’s a more normal-feeling Spring than it has been in a few years. Except for the buckets of rain coming down for weeks. Some of us are wondering if we’ve woken up in Seattle!
Enjoy your Memorial Day weekend. Have some ice cream!
Search for your next Denver home at www.GretchensDenver.com.
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Denver Colorado Real Estate Statistics | March 2011
April 20th, 2011 categories: Market Trends
Real Estate is like a box of chocolates. Sometimes you get nuts.
- The nuts have been our foreclosures, our short sales, our underwriting issues and our tough appraisals.
Real Estate is like a roller coaster. Sometimes you go up, and then you fall fast. It takes longer to go up than come down.
- Interestingly, last year’s tax credit made our first half of the year incredibly busy. Then third quarter we fell off a cliff. It was so quiet! We all went to the pool.
- Prices have fallen across the nation since 2008. In some areas, they fell fast. Now, they’ll take longer to creep back up. Appreciation won’t be crazy fast like it was. It will be slower, more rational. This is the new normal.
Real Estate is like babies and teenagers.
- If you own your home, you need to baby it. Feed it with updates to keep it current. Clothe it in great curb appeal, lovely landscaping, an occasional fresh coat of paint and new carpet.
- Some days owning a house is like having teenagers. Temperamental (notice the word “mental” is in there?) Keep your mechanicals, appliances and roof in good working condition so you don’t have to use your mattress money to bail them out of jail.
Whatever your real estate is like, Denver real estate is always interesting. And the homes for sale are the bargain of a decade right now, with prices on the rise again.
In March 2010, the tax credit was just about to end. Buyers were in a tizzy to get their new homes under contract by the deadline. This was driving the market and the main price-point was the lower end, or starter homes.
This year, you can see in the chart that prices are moving back up. We don’t have much appreciation yet, if at all. We have a more normalized market, with the higher end finally coming back. In 2008-2010, jumbo loans were nearly impossible to get. Luxury homes were purchased with cash, so fewer luxury homes were selling. This resulted in significant price reductions by Sellers who wanted to compete and sell. Now that jumbo lending is back, rates are low and prices are low – the high-end is off of life support.
So Real Estate is like life. Ups and downs, ins and outs and always interesting. If you’re interested in searching for a Denver home or listing your fine property, call on Gretchen Faber and The Kentwood Company for assistance. Our company was ranked the #1 residential real estate company in the United States for per-agent sales volume in 2009, with 2010 results posted soon. We’re a dedicated team of professionals, looking forward to helping you find your next dream home.
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Are the real estate doldrums behind Denver?
January 16th, 2011 categories: Real Estate News
Denver real estate is like Denver weather, changeable, unpredictable, and not like anywhere else in the country.
Today’s forecast was for sunshine, temperatures in the high-50’s and slush everywhere. The bitter cold and snow of last Sunday and Monday are past, the famed Denver sunshin
e is back. Denver’s forecast is for more sunshine tomorrow. Get out to one of Denver’s famed parks this week. Cheesman Park has a great view of Downtown, Washington Park has two lakes and City Park is next to the Denver Zoo.
If you’re heading out to the Stock Show this week, look around. You may see more smiles on more faces. Consumer confidence in Denver is on the upswing, and the recent Emerging Trends in Real Estate report echos what we’re seeing here “on the ground.”
Denver’s real estate forecast is sunny too.
Inside Real Estate News, by John Rebchook, reported that by strengthening Denver’s core and adding to the light rail system, Denver is well-positioned to weather the storm. Denver boosters have always touted the quality of life here, but it’s apparent that more and more people are catching on that the quality of life is terrific and the economy is relatively stable. In the report, Denver received a green light and the report goes on to say that our area has stabilized.
Colorado is still wrestling with lack of employment, foreclosures and a stall in new homebuilding, but Denver is poised to have a terrific January for real estate.
January 2011 may post declines in year-over-year from 2010, but don’t think that’s a trend. Remember that in January last year there was a frenzy of tax credit purchasing. 2011 is poised to be a more “normal” year, with a slow steady start and building from there.
Rates have begun their creep. Historically great rates are still to be had – but the guarantee of a rate in the 4’s is elusive at best. Expect to lock in the 5’s now, and rates will probably stay there throughout the year.
Sellers – get your house sold now before increasing rates erode your buyer’s purchasing power.
Buyers – buy now before you’ll find you’re buying less house for the money. Not only will increasing mortgage rates affect your purchasing power, so will home prices. They’re poised to stay flat or even increase.
2011 will be an interesting year, to be sure! At least in Denver, we’ll have guaranteed 300 days of sunshine. We’ve already had 12 sunny days this year.
Look for homes in Denver at www.gretchensdenver.com. Your one-stop shop for homes, neighborhood and relocation information.
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