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Best time to make a price adjustment - Don't ignore key market signals

by Allison Simson

Don't ignore key market signals

Question:  Allison, our Frisco, CO condo has been on the market for only 4 months.  Our realtor is telling us we need to reduce the price to sell it.  We priced it where he told us to when we listed it, so how can we be sure we need to reduce the price?

Answer:  Good question!  I only wish that pricing were an exact science, but the truth is that it is an art AND a science.  Your property could very well have been priced “correctly” when you listed it, but the market has changed – and continues to shift. 

There was a time when a price reduction tainted a listing. That was several years ago when listings in many areas (Summit County included) sold quickly. At that time, it was assumed that something was wrong with a listing if it needed a price reduction.

In today's market, price reductions are common. Sometimes, sellers aren't content with listing unless they try a price that's higher than what the comparable sales data indicate. Or, a price reduction could be necessary simply because it's difficult to price homes in a changing market, particularly if the local housing stock is varied in size, condition, age and style.

It's easier to establish current market value in subdivisions and complexes where the properties are similar to one another, particularly if there are a number of recent comparable sales. It's hard to price right for the market in any neighborhood if few or no homes have sold recently.

It's best to list your home at a price that buyers will perceive as a good value. Overpriced listings sit on the market. Real estate agents and buyers forget about them.

Today's buyers are cautious about buying. Some are on the fence waiting for a clear sign that the market has hit bottom and that prices won't drop further.

Although some markets appear to have stabilized, there is no guarantee that prices won't slip. Buyers who realize that they can't time the market and who want to take advantage of low interest rates are moving ahead with their home search. They are very selective, are buying for the long term, will wait for the right home and won't pay over market value.

HOUSE HUNTING TIP: As difficult as it may be for sellers to consider a price reduction after only a couple of weeks on the market, this is often the best strategy. Buyers and their agents focus on the new listings. If you bring your property on the market priced too high, but it's otherwise a nice house in good condition and in a good location, a price reduction early in the marketing period is likely to attract the attention of brokers and buyers who still have the listing fresh in their minds.

Make sure that your broker gives your listing a renewed marketing effort to generate enthusiasm about the property. More than 85 percent of today's homebuyers use the Internet to search for a home. Some sign up for services that notify buyers when a new listing is submitted to the multiple listing service (MLS) and when there is a price reduction or pending sale.

Your broker should schedule an open house for brokers if possible after a price reduction to alert real estate agents who may have missed the price reduction when they ran an MLS update. MLS updates list price changes.

Depending on your local market, you may need to lower the price more than once, particularly if you waited months to make a price adjustment. If market values have moved down since you listed, you could find yourself out of sync with the market again. Don't rely on what your neighbors are asking for their homes. If they aren't selling, they are probably overpriced for the market. Rely on sales of comparable properties that closed after you put your home on the market.

THE CLOSING: Ideally, you want to reduce the price before your competition does.

 

 

For answers to your real estate questions, call Allison at 970-468-6800. Email - [email protected]. Allison is a Certified Residential Specialist (CRS), the highest designation awarded to a Realtor in the residential sales field.  Her philosophy is simple, whether buying or selling, she understands that the most important real estate transaction is yours.  Want to know the value of your Summit County property? Visit www.SummitHomeValue.com   

End of Year Real Estate Info!

by Allison Simson

Let it snow!  Let it snow!  Let it snow!  It has been snowing like
CRAZY up here in Summit County, Colorado.  The skiing is fantastic and it is just gorgeous!

Bright blue-bird sky today after another few inches last night. 

It's so sparkly and bright - looks just like a postcard!

Click on the cover page below to enjoy our latest

edition of Summit Real Estate News & Views filled with informative real estate and community information.



Happy Winter Solstice to you!

by Allison Simson

 Happy Winter Solstice to you!  I love this day that comes in the midst of the Christmas/Hannukah/Holiday fun.  I love the shortest day of the year because it is the beginning of more and more light coming our way here in the northern hemisphere!  I love the physical fact that more sunlight is heading our way every day but more so, I love the emotional/spiritual feeling of more light and a "lightness of being" coming our way through the holiday and the coming year.
 
It's easy to get swept up in the commercial aspect of the holidays making it easy to forget what the true meaning really is.  It's fun to go to parties and give and receive gifts, but I believe that the most important thing is to pause and reflect on what we have to celebrate.
  

I hope the light and love of the holiday will fill your hearts! 

Now, get up here and come skiing!  We have more SNOW right now than we've had this time of year in FOREVER!  It's absolutely gorgeous and the conditions are PERFECT!  

   
See you on the slopes! 
  

And Here's Your Morning Coffee! 

List Your Summit County property for Sale in the Winter??

by Allison Simson

List Your Summit County property for Sale in the Winter??

Sellers will often take their properties off the market if they have not sold by Fall or they will wait to list until Spring because a common belief is that homes do not sell in the Winter months.

Although there are fewer buyers looking during the 2nd Season (Fall to Spring) than during what is considered the hot Selling Season, a lot of the people looking when the weather is nice and school is out, never buy anything.

I have found that if people are looking at homes during the 2nd Season (Winter) are serious buyers who intend to buy. Fewer showings but the buyers are ready, willing and able to buy. Since showings tend to follow the light of day, the showing hours are compressed and evening appointments are very rare. Fewer, more convenient and better quality showings are less intrusive.

Since most Sellers believe nothing sells in winter, there is less competition for the buyers who are looking.

Less competition, less intrusion, better quality prospects.... Three good reasons to market your Summit County property now.

Of course, we offer Buyer and Seller Consultations with no obligation.  If you have questions, just ask!

And Here's Your Morning Coffee!

Displaying blog entries 1-4 of 4

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Summit Real Estate
The Bright Choice
330 Dillon Ridge Way, Suite 10
Dillon CO 80435
970-468-6800
800-262-8442
Fax: 970-468-2195

Allison Simson, Owner/Broker, is a licensed Colorado Real Estate Broker