Our guest post this week is written by Roberta Murphy, one of San Diego's finest REALTORS®! Roberta and I have shared social media space for years before we met in person. I've always appreciated Roberta's quick wit and well spoken words of wisdom. She tells it like it is and does so with such charm and grace it's impossible not to trust her. Let's welcome Robert...
The three hardest words for our San Diego home sellers (and surely those in Denver) to hear are:
Drop the price.
They would rather clean closets and carpeting, replace appliances, stage the home and employ Feng Shui. And perhaps Denver real estate broker Kristal Kraft might find the 237th site on which to advertise the listing--but little can replace what buyers want:
A bloody bargain.
If you are thinking of selling, go ahead and mercilessly undercut your competition. Put a bridge between the seller’s desire to sell and what buyers are willing to pay. To get their home sold, sellers should become temporary and tight-fisted home shopper. Study your competition and match or beat their price. In many neighborhoods, sellers are forced to compete with area short sale, foreclosure and bank-owned offerings and may have to price their homes accordingly.
Your goal in selling a home, whether it’s in Denver or San Diego real estate, should be to get an offer in the first 30 days. All too often, we have sellers who price their home above market so that some room is left for “negotiation” in pricing. Bad move. Calculate a realistic sales price with your Realtor and then list your home slightly under that price and nearby comparable offerings. Doing so should generate significant buyer interest--which could result in multiple offers--and just might pull the final price into your desired range.
According to Trulia, 28 percent of Denver homes cut their list price prior to sale, and the average first price cut for the year ended March 20, 2011 was 6 percent. Wouldn’t it be better to bite the bullet initially, list below market and avoid the trap of chasing the market down?
Finally, it’s perfectly acceptable to reject ridiculously low hardball offers--especially when the buyer won’t negotiate. But if the buyer exhibits some flexibility, negotiations can begin in earnest. If sellers have a genuine bottom line that isn’t too far off the mark, perhaps they can offer appliances as a lure for the buyer or even an extended closing date.
Your Turn to Win
Selling your Denver home in this market can be painful, but once done there is a good chance you’ll become a buyer for its replacement. Here’s your opportunity to find dropped prices, bloody bargains and just maybe, the home of your dreams. This is the new market, this is the market that just...is.
And the new reality?
Sell low, and if you’re fortunate, buy low, too. That is advice that holds for both Denver and
San Diego real estate market conditions.