Driving with the Rear View Mirror

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Note to sellers.   Marketing your house without a deep knowledge of current market conditions and the prevailing trend is like driving your car while staring in the rear view mirror.     If you don't want to leave money on the table, look to the future.

I just completed a detailed analysis of market conditions for one of my most analytic clients.    I put together a spreadsheet to help paint the real picture of the market for his home, carefully analyzing homes sold over the last few years.    I included negotiated discounts, days on market, and adjusted for seasonal factors.   I also looked at expired and withdrawn listings, plus the current competition.      

For this client's Boulder home, I'm recommending a strategy which prices it above the comparables.     The market - again for this particular house in this particular location - is showing signs that it will support higher prices.     As part of a comprehensive marketing strategy, my conclusion is that we can safely test the market.

I also recommended that if he can hold off selling it and rent it instead, the market will likely be higher next year.  Yes, being a landlord is hassle but if the rent supports the mortgage and you pick a good tenant, it might work out for the better.      And in case you're wondering, I'm not in the rental property management business.  

Price It High - Really?
Lead the market, do not follow it.  This has always been my advise to sellers.   When the market is soft and the trend is downward, sellers who test the market with a high price risk chasing it down.    The result is a lower selling price and very long marketing period (i.e. the Walk of Shame).  When the market is strong and moving upward,  sellers have the advantage.    Testing the market for a short period with a higher (but not ridiculous) listing price is a wise move.   Make no mistake, this strategy is advisable only if the house is truly buttoned up and ready.    It also helps to time the listing for peak seasonal absorption (usually June or July).

If you're thinking about selling your home and would like to talk to me about a listing strategy that maximizes your selling price and minimizes your hassle, give me a call.     My goal is to help you make a smart decision about your real estate situation.    ph: 303.746.6896.

---Note: Our goal is to provide exceptional service to our clients. The ideas and strategies in this blog post are the opinion of the writer at the time of publication. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.