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Selling in the winter - no problem!

January 2nd, 2009

As I’ve mentioned a number of times in this forum, I LOVE to sell homes in the winter months. Many realtors don’t touch listings right now because they either take the time off or they simply don’t want to market in the snow and cold when homes don’t look their best.

Ahhhh, that’s not the way to look at. I call this reluctant selling attitude a case of “bellying up to the Excuse Bar.”

I love listing homes now because a seller can truly be more competitive and is likely to get a better price for the home. Sure, there are fewer homes on the market (less inventory) and there are fewer buyers looking. But, I’ve found that the majority of buyers this time of year are far more serious about buying. They usually NEED to buy when they’re looking in the winter, and don’t spend a lot of timing looking. They find a home and buy it. So, if you decide to get on the market before spring when thousands of other seller’s will increase the inventory and the buyer’s pool will grow accordingly, here are a few tips to give yourself a better chance at being successful.

Find an enthusiastic real estate agent: Make sure you’ve hired an agent who is ready, willing and able to sell your home this time of year. Don’t settle for one that hates the snow and cold and has no intention of truly marketing your home. Also, insist that your agent update the exterior photos of your home often. If the initial exterior pictures include snow on the ground, make sure new pictures are taken when it melts. Come on how lazy can you be! And, make sure he/she replaces pictures everyplace the home is marketed - flyers, brochures, websites and the MLS. What about those beautiful summer pictures of your yard and landscaping? Hopefully you have some. Put them together in a nice album and leave it in the house so people can see how wonderful the home looks when it warms up and everything blooms. One caution here - make a copy of the pictures in case someone helps themselves to the originals.

Take down Santa and Rudolph: If you haven’t done it already, get off the couch (the Broncos are out of it anyhow) and take those lights and decorations off the house - inside and out. You risk offending a potential buyer anyhow with holiday decorations. They may not share your views and how you choose to celebrate this time of year. Why take the chance of offending someone who otherwise might buy your home.

Show off your “green” home if you have one: In other words if your home is energy efficient, make note of it for showings and the marketing material. If your water, electric and gas bills are low due to efficient appliances and systems in the home consider leaving copies of your monthly bills out for potential buyers to view. If your pipes are wrapped or there are other visual clues about the homes efficiency have your realtor put “feature cards” up in the home to remind people of the “green” atrributes. Again, a caution here - black out anything on the bill you don’t want known like your SSN or account numbers.

Winter maintenance updates: Be careful about things like icicles hanging around the house especially from the roof or gutters. And, inspect your weather stripping to make sure doors and windows aren’t letting in cold air that buyers might be able to feel when they’re in the home. Keep your sidewalks, driveways, decks and porches clear of snow and ice. You don’t want anyone slipping or hurting themselves. That could be a real legal nightmare. Also, keep an eye open for any downed or broken trees or branches.

Common sense is the rule with just about all these tips. I hope you find them useful.

Hurry, jump from that fence Mr. Buyer!

December 15th, 2008

The buyer’s market that we’ve been in for some time now is cyclical and it’s also a paradox. It’s a buyer’s market and that means if you’re a buyer, you’re supposed to buy in this kind of market. I know that seems like double speak and a foregone conclusion, but it’s not for many buyers.

Here’s the issue. Far too many buyers right now are what we call fence-sitters. You know, folks who can’t make up their minds and are waiting on that fence until the real estate market hits bottom. The problem is nobody knows when the market will hit bottom or even what that looks like. If you can picture a graph showing a line trending down as the market continues to decline. That line represents a buyer’s market. When it starts to head back up that’s when fence-sitters think they should buy. But, it’s usually too late at that stage. That’s when sellers can begin to get more for their home and the buyer’s market starts to turn into a seller’s market. That’s when all those fence-sitters are going to take a hard fall. They’ve waited too long and the buyer’s market doesn’t exist as it did even several weeks earlier.

So, when the seller’s market starts to strengthen another paradox is born. That’s when the former-fence sitters start buying like crazy. Sellers at this point may be getting multiple offers and each buyer is putting a little bit more money on the table. The fence-sitters can’t wait to play this bidding war game. However, if they’d just bought several weeks earlier when the buyer’s market still existed, they would have gotten a far better deal. Good real estate buyers and investors know not to wait for the so-called “bottom” to hit. Instead, they buy in what Gary Keller calls “the safe zone” strategy. While you can never time the market accurately, being in the safe zone is as close as it gets. Smart buyer’s agents know to advise and consult their clients to buy when the market is declining, but never wait or try to speculate on where the bottom might be. In the safe zone, it’s always the right time to buy because the market will turn back up and quickly surpass the price point where the home was purchased. The buyer is truly living in the area of certainty.

So, if you’re a buyer wanting to purchase a home in this declining market and you’ve been approved to borrow money at unheard of low interest rates right now… GET OFF THE FENCE. You’re either going to miss out or you’ll impale yourself when you realize you shouldn’t have waited for something you can’t predict. Drop me an email or give me a call if you’d like to chat about these buying strategies.

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