Friday, September 30, 2011

Nerd Corner: August MLS Stats

There are a number of positive continued signs in this months report: August 2011 combined MLS Residential Statistics had the following changes compared to August of 2010.

One thing to take note of is the absorption rate: under 6 months of house inventory means that it is a SELLER's market - there is more demand than supply. This is very interesting, because the doom and gloom national real estate news is obviously not what is happening in the Metro Denver real estate market.
  • The Number of Closed Sales had a significant increase (up 28.4%, to 3,177)
  • Average Days on Market increased slightly to 96 days
  • Number of Active Listings decreased 24% to 13,436
  • Absorption Rate declined a whopping 39% to 4.4 months
  • Average Sold Price decreased slightly from $295,516 to $284,065

Wednesday, September 14, 2011

10 Costly Mistakes to Avoid When Selling Your Home

Selling your home can be an exhausting experience, so it is imperative to be aware of the mistakes a seller can make that could cost them thousands of dollars. Last minute walk-throughs, inconvenient calls, difficult negotiations, price adjustments, and the possibility of being stuck with two mortgages are indeed real concerns. If you are not completely prepared, and don't have the proper professional help, you could end up losing thousands of dollars in profit.

A fine line is all that separates a profitable smooth transaction and a break-even, miserable experience. In the majority of cases it all comes down to the subtle knowledge of your real estate agent. By utilizing the knowledge of a well-trained Realtor, the sale of your home will be quick and profitable. Familiarize yourself with these common costly mistakes and you'll be ensured a rewarding home-selling experience.
  1. Refusing to Make Profit Inducing Repairs
    It always costs you more money to sell 'as is' than to make repairs that will increase the value of your home. Minor improvements can yield larger results than most sellers think. Consult your Realtor to find out what improvements will increase the selling value of your home.
  2. Not Providing Easy Access for Showings
    Accessibility is a major key to profitability. A lock box makes your home the most accessible, while appointment-onlys make your home the least available for buyers. Remember that the more people that you show your home to, the more likely you are to find someone willing to pay your asking price. You never know if the one that couldn't get a viewing was the one that got away. If your lifestyle keeps you away from home with work or travel, developing a trusting relationship with a Realtor will allow he or she to show your home with your best interests in mind.
  3. Priced Too Low/Priced Too High
    If the property is priced too high it will sit and this could not only ruin your plans but mark it as a "problem property". If it's priced too low it could cost you considerable profits. The real estate market has subtle nuances and market changes that should be re-evaluated by your agent every 10-14 days to help you maximize your return.
  4. Relying Solely on Traditional Methods To Sell Your Home
    A sign in the front yard is certainly not enough in this internet world.  Did you know that a knowledgable and tech-savvy Realtor will expose your home to over 4,000 websites? Having a real estate professional who is innovative and willing to offer new strategies of attracting home buyers is often the key. Demand around the clock advertising exposure, innovative lead generation methods and lead accountability. These services exist and should be offered to help you sell your home quickly for a good profit.                                      
  5. Timing the Market Wrong, and Believing in 'Seasonal Selling'
    Just as a broker who continually follows the trends of a stock, your real estate professional continually follows trends of your home market. They will know if the market cycle is poised to net you the most money. Avoid believing that property sales are seasonal... property is always selling.
  6. Refusing to Make Cosmetic Changes
    The prospective home buyer's first impression is the most important. Many buyers walk away from a perfectly good home due to unkempt lawns, cluttered rooms, bad stains, or unpleasant odors. Imagine you were the home buyer and clean your place from top to bottom... military style. Think of packing up books, movies, kids toys, posters, or other clutter to make rooms more spacious.
  7. Wasting Time With An Unqualified Prospect
    Your representative's responsibility is to screen a prospect's qualifications before valuable time is lost. Seller's have lost weeks and months dealing with buyers who were NOT pre-screened by their agent. Be sure to align yourself with the right professional and eliminate negotiating with unqualified prospects.
  8. 'Testing' The Market
    Never put your property on the market to sell unless you are serious. The right professional will find you buyers and if you are harboring indecision... you can blow the sale.
  9. Believing You are Powerless to Make a Difference                                                                       Be a part of the team! Take an active role with your Realtor to see what you can do to facilitate your sale. Networking with professional peers and personal friends often results in the sale of a home. It's surprising how many homes are sold this way.
  10. Believing Real Estate Agents and REALTORS are the Same
    With all the intricate details and critical decisions to be made concerning your home sale, why should you rely on anyone but an experienced REALTOR? Your home sale is a time consuming, difficult task. Maximize your profit by utilizing an experienced REALTOR.