Offered by: Scott & Lora Nordby – Berkshire Hathaway HomeServices
Current headlines don’t really do a lot of justice for buyers and sellers in the real estate market. For example, the average home sale price just hit an all-time high in the Denver Metro Area, at $533,371. When buyers and sellers read that headline, it shapes how they set expectations about their experience.
Buyers may be inclined to jump at the first house that meets most of their needs, and possibly regret not looking at more houses during their search. Sellers, on the other hand, may feel like the new record indicates that they, too, should price high and get in on that kind of high-selling action.
The problem with both of those scenarios is that it flies in the face of conventional wisdom. According to DMAR (the Denver Metro Association of Realtors), the market is beginning to cool. Average days on market went from 6 days in 2018 to 12 in 2019. Inventory was up 35.89% compared with 2018, as well. These stats spell a cool down.
So how do you set realistic expectations in a slowly shifting market?
Know Your Goals
You won’t know when you’ve found what you’re looking for if you don’t define what it is. For buyers, that means a list of what’s important and what are deal breakers. For sellers, it means being comfortable with your listing price and the strategy to get it sold quickly. If your neighbor’s home went under contract in 3 days, but had more upgrades and a lower price point, your sale may not perform the same way. Having all the information will keep you prepared.
Listen to Your REALTOR®
Your REALTOR® wants you to have a great experience. When they say the price needs to come down before you list, ask questions and listen to the answers. Sellers may get attached to a certain price point and find themselves disappointed when the offers don’t come pouring in. Buyers, on the other hand, may find themselves hyper-focused on a neighborhood, feature, or style of home that just doesn’t exist. When they’ve exhausted all of their options, they may become discouraged.
When your REALTOR® asks questions to expand your search, change strategy, or lower your price, be sure to engage in that conversation and ask questions until you understand.
Follow the Plan
There are a lot of moving parts to buying and/or selling a home. From competitive bidding situations to seasonal shifts in activity, your REALTOR® will set the tone and explain the strategy. Sometimes you get 4 offers at your first open house. Other times the offers trickle in over the following few days. You may make an offer on the first home you see, or it may take several outings. Be patient and you will reap the rewards.
If you are ready to buy or sell this spring, give us a call! We’d be happy to answer any questions and get you moving! Call us today at 303-638-6229!