"Coming Soon" Creates Bigger Boom

If there is something I know about selling property it is that when you first get a new property you want to get it out on the market with a lot of hype around it as a new listing. If you drive around town you can see this type of advertising excitement used on new stores or restaurants that say “opening soon” or “new owner”. In real estate, we like to post a “coming soon” sign in front of properties that are to be put on the market in a timely fashion or even write about them before they go on the market to get potential buyers excited and have them start doing their research on the property.

Another way I cause a stir about new properties even before the information is released to the public is by marketing my listings as “coming soon” to other agents as well before putting the property into the MLS. If other agents know what their clients are looking for, and I go to them with a lead on a potential property, then more agents will actively look for my properties in the future as well as want to work with me again.

A study was recently done in Chicago where they took the number of properties that had been advertised as “coming soon” versus properties that did not saw the properties with “coming soon” selling after 28 days on the market versus houses not which sold after 42 days on the market.

These kind of studies continue to show that before it is time to list your property to the public and put it in the MLS, you should marketing the property as “coming soon” to build hype around the new arrival to the market. Like I mentioned before, many companies and business owners use this same tactic when it comes to building excitement over a new business or launch and here I am doing the same thing for my clients and their “coming soon” property.

If you are thinking it is time to put your house on the market then let me be the Realtor to get the ball rolling and get people and agents interested in your place with a “coming soon” announcement. Or if you are starting to look for a house but want help finding houses before they have even hit the market, give me a call and let’s grab coffee and discuss finding your “coming soon” home and making it your forever home.  

Sprucing up your home for the big sale

Spring and summer here in Colorado are the biggest seasons for selling and buying houses. Sellers know when the weather changes, buyers are out and about looking for their next purchase. These sellers also know that putting in some money to the appearance of their house after the winter will attract more buyers, add value, and potentially give them more offers at the end of the day. One of the biggest recommendations I have for homeowners is to keep your house up-to-date with inspections, presentation and overall wellbeing. If you keep your house functioning but don't give it updates when needed or replace appliances when they falter, you will have a much bigger job on your hands when it comes time to sell your home. To be able to put your house on the market with little work will keep your selling experience less stressful and will keep buyers more interested in what your beautiful house has to offer.

I have compiled two lists; one is for things to do during the years to keep your house up-to-date and the other is what to do when it is time to put your house on the market, how to get your house selling ready!

List 1 - What to do yearly to keep your house in good condition:

• Have your appliances checked - There are professionals out there who would be happy to stop in and check on your appliances from your water-heater to your stove. Keeping your appliances up-to-date and working properly will keep you from having expensive replacements if the new buyers find issues with the appliances before moving in.
• Maintain your yard - Your yard really is the first things buyers will see when they pull up to your house so keeping a good curb appeal is like putting the finishing jewelry or shoes with a great outfit, the wrong shoes could wreck the whole outfit just as a yard unappealing to the eye could turn buyers off immediately. Mow, prune trees, cut bushes, pull weeds, and plant flowers yearly to keep your yard looking extra beautiful.
• Paint, it's cheap and makes things look fresh - If you notice the paint on your house or inside your house is starting to look a bit drab, maybe it is time to add a fresh coat. Giving your house this extra love is a sure way to show potential buyers that you care about this house and care about who the house is sold to. 

List 2 - Preparing to put your house on the market:

• First impressions are everything - This is more true then you would expect but you want every buyer to pull up to your house, enter your house and think to themselves, I could definitely live here. Curb appeal as well as entrance appeal are a must to make a potential buyer see what your wonderful house has to offer.
• Paint, paint, paint! - Again, paint is cheap and can really add character to a room. While many of the rooms in your house should be neutral to let buyers put there own vision in each room, adding a bit of color throughout will give the house a unique appearance. Maybe even having a room or two have a theme when staging them, from a beach room to your backwoods room, giving your home that homey feel and character can really help buyers imagine what can be done in those spaces.
• Keep it light and keep it bright - Don't over clutter your home with a bunch of furniture and decorations, you want buyers to see the amount of space in each room so arrange your furniture in each room to show off the whole area. Also, let the sunshine into each room, make sure shades are open and drapes are pulled back to let all the light into each room.
• Focus on the heart of the home - As many people will tell you, the heart of the home can be found in the kitchen. If you are going to put money into redecorating or refurbishing rooms in your house, the kitchen is a great place to start. Update appliances and make sure to give the kitchen a real warm feeling so buyers can envision family dinners and friends coming over for potluck in that space.
• Don't forget the garage - Yes, buyers will go look at this space!  First, make sure it is clean and then try to put up shelves and organize the area to show how that space can be used in many ways not just as a place to park cars. 
• Hire a realtor - I cannot stress enough how much work goes into selling a house and to help you with that, make sure to really consider having a real estate agent help you. If you are looking to sell your house this summer, give me a call and I would be happy to sit down with you and go over recommendations I would have to spruce up your place to get it market ready. 

Photo By: Victor Fossen

Paying Over List Price

Spring has sprung around the Denver area and with the changing of seasons and new life sprouting everywhere there also begins the new busy season in the housing market. Have you decided this spring might be the perfect time to start looking for that dream home of yours? There is no time like the present and as Denver continues to grow on the daily, if you are ready to purchase a home, start looking today but be prepared for what you might run into along the way.

 In the Denver market, many buyers are paying over the list price, which can be hard or uncomfortable when you are entering the market with a specific budget in mind. Due to this being a sellers market where homes sell quickly and sellers have a lot of pricing power often even the appropriately priced homes in the Denver metro region sell quickly and receive multiple offers and even cash on the spot offers. In the last month alone, 48 homes in Denver urban neighborhoods went under contract in 7 days or less and sold for 102% of their original list price. The seller and the listing agent determine the list price based on the current market and by comparing recent sales of similar homes. If priced well, the home will fall within a verifiable range based on those sales. Please understand this is a range and there is not set number.  To ensure the home is priced accordingly, ask your Realtor to look at sold and under contract comps in the neighborhood and to discuss those with you.

 With record low inventory and high buyer demand this is causing homes in the Denver metro region to appreciate rapidly. The rule of thumb is to look at comps within the last three months.  If you look back further than three months this can skew your price point and your mental willingness to aggressively pursue the home. Denver homes appreciated at an average of 17% over the last year. This means that the home you could have purchased 12 months ago for 400k is now worth 451k. This provides a solid case and can make you more comfortable when offering over list price. One thing not to do is wait to make an aggressive offer until you have searched for months and lost out on several homes due to being outbid because you could very well price yourself out of the market.  Here are some guidelines you and your agent can employ to help you get under contract and into your next home:

·       Pursue homes priced below the top of your price range. Giving yourself a 3-5% financial buffer will allow you to comfortably bid over list price, providing you a competitive edge and more leverage.  

·       Unless you are paying cash for the property, an appraisal will be required. The appraisal is an official report comparing similar properties (comps) to determine the value of the home you are purchasing. The lender will use this appraised value to determine how much money they will lend to you. If the offer you submitted on the property is higher than the appraised value, you will need to account for the difference.

·       As the buyer, be prepared to make up that difference by bringing cash to the closing table. If the seller is willing to negotiate, they may adjust the purchase price or look to find a compromise between the two. If you reviewed the comps with your Realtor prior to making an offer, you should have a realistic idea of the value of the property.

If your offer far exceeded the homes estimated value, in order to get under contract, there is a good chance the deal will crash at appraisal. Another buyer, the one with the solid and realistic backup offer, is waiting for this to happen. Moral of the story: Make sure you can follow through on your offer before submitting it.

·       Consider terms when writing a competitive offer. The highest offer is not always the deciding factor for sellers. In other words, those with the most money do not always win. A well-written contract with terms that address the seller’s needs is equally important. Does the seller need to find a replacement home? If so, your offer should allow them time to do just that. Will they consider making a concession for updates or closing costs? If not, don’t ask for them in your initial offer. Are there any other offers on the property? If so, you need to adjust your offer accordingly. An experienced Realtor will call the listing agent to ask questions specific to your purchase, allowing you to craft an offer that works well for both parties. The fact of the matter is: If multiple parties are imagining living in the home you love, you’ve got to move past the list price before putting out the welcome mat. Talk to your Realtor about thoughtful strategies to secure your next home.

 If you think you are ready to dive in and start looking, start your search here. I know how daunting it can be to begin looking for that dream house of yours and I am here to help you take those first and last steps to securing that special place. 

Photo by: Walnut Street Photography  Flour Mill Lofts - Denver