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After four years of a down-turned market, more buyers are eager to jump in, invest in their mountain sanctuary, but remain cautious about fair market value and making a smart investment. These are not the days of the ‘emotional’ buy.
What about sellers? What’s it like to be a seller in a recovering market? Well, it’s tough. Owners watched property values sky-rocket from 2004 into 2008. Some of these owners purchased during the peak market days, and had hopes of selling at a substantial profit.
And some of those owners have been chasing the market down since 2009.
In reviewing properties today, I came across a home that has been on the market since 2009. It was originally listed at $1,015,000. I remember previewing the home the summer it came on the market, thinking it was unrealistically priced, and would not be selling that year. I thought $800,000 was a more realistic number. Since then, the property has had ten (ten!) price reductions. Its latest reduction brought the price to $699,000 – 31% less than its original price.
I wonder how frequently this home has showings. Probably not often. The MLS system that Realtors use tracks when a property is first introduced to the market, all of its subsequent price changes, when it’s taken off the market, and when it’s again brought back to the market. So even Realtors that have never been in this home know it’s got a can’t-get-it-sold history. This can influence a Realtor’s decision to recommend a property to a buyer – if no one has made the move to purchase the property in four years, what’s wrong with it?
What is wrong is the seller has been chasing the market down.
Chasing the market down happens to sellers that don’t want to believe the data, but do believe that somehow their property is different and unique; they believe some buyer will be willing to pay more than fair market value to become the next owner.
If the owner of this property had been willing to listen to the cues of the market in 2009, this property could have sold, and most likely for more than the current list price of $699,000.
So if you’re a seller today, listen to the cues the market is giving you. What are the comps? Where is your competition listed? What’s the selling price of recent like-kind sales? What’s the square-foot price for a property with similar location, qualities and upgrades?
No seller wants to sell for less than market value, and with the right price and the right marketing, a seller doesn’t have to. Understand that in today’s market, what’s consistently selling is what’s most competitively priced. So if you’re a seller, or thinking about becoming a seller, be smart, and don’t chase the market down. If now isn’t the right time to sell, hang on until it is.
Susan Gunnin, Broker/Partner
Breckenridge Real Estate Group
Direct: (970) 389-0182gunnin@colorado.net
www.breck4sale.com
