Welcome to the September edition of the 2014 Denver Real Estate Market Newsletter.
THE PROS and CONS OF BUYING AND SELLING IN FALL AND WINTER
The ‘Pros’ of Buying in Fall and Winter:
Over the summer many sellers and their Realtors were unrealistic when pricing their home for sale and are now having to substantially decrease the price. Of the 50 homes currently listed for sale in Highlands Ranch, more than half of the listings have had a price decrease, averaging a reduction of more than $17,000. Seller motivation increases as we approach fall and winter. TIP: The best time to buy is when a seller is motivated to sell.
Seasonal home prices are lowest in January and February, meaning home buyer affordability is at its highest. With interest rates at the 2014 lows, home affordability is further enhanced. Increased home affordability means 1) it costs less to buy now than it will in spring or 2) you can buy a more house (more square footage, higher level of finish, better condition and more desirable location) for the same money.
The ‘Cons’ of Buying in Fall and Winter:
Less Choice: During the busy summer months, buyers may be able to choose from 5-10 homes that closely match their needs. In the winter months, there may only be two or three homes to choose from.
The ‘Pros’ of Selling in Fall and Winter:
Buyers looking this time of year are ‘motivated’ buyers. You don’t see many lookie lous.
With fewer homes for sale, buyers must choose from a more limited inventory, making it harder for the buyer to object to a feature of the home. For an example, if Home ‘A’ needs the carpet replaced and Home ‘B’ already has brand new carpet, most buyers will choose Home ‘B’. Assuming Home ‘B’ has already sold and there are no other competing properties, Mr. and Ms. Homebuyer will select Home ‘A’ regardless of the objectionable feature. TIP: I always recommend replacing that worn out carpet. Homes that show well and give the appearance of being well maintained tend to sell more quickly and for a higher price.
The ‘Cons’ of Selling in Fall and Winter:
Seasonal home prices reach their peak during the months of June and July. Selling in winter may result in a lower sale price. BUT WAIT! This can be a ‘Pro’ if you’re a move-up buyer. Let’s say home priced drop, due to seasonal factors, by 3%. If you’re selling a $400,000 homes then you may have left $12,000 on the table. As a move-up buyer, you save the same 3% on the purchase side. If you purchase a home for $600,000, then you save $18,000. That is a net benefit of $6,000!
Many buyers and sellers aren’t thinking about making a move in the fall and winter months missing out on a great opportunity. Please call me today to discuss the Pros and Cons of buying and selling real estate during the fall and winter months.
FACEBOOK AND PAUL’S MOBILE REAL ESTATE APP
Please ‘Like’ my Facebook business page. Use this link to be redirected to ‘Paul Sobania – Real Estate’ and click on the ‘Like’ button (log in to Facebook.com if needed).
Search homes for sale on your smart phone or tablet using my home search app. Log in to the iTunes Store or Google Play and download the Keller Williams app. When prompted, type in the code ‘KWKB85L’. For simple downloading instructions use this link, www.PaulMobileApp.com.
AUGUST 2014 REAL ESTATE MARKET TRENDS
DENVER REAL ESTATE MARKET TRENDS
REAL ESTATE NEWS
Denver rated 5th best market for selling a home Read more
August real estate market cools, still the 4th best August for home sales Read more
Denver in top 5 most affordable cities for millennial buyers Read more
Oil and gas industry plays major part in propelling metro Denver’s economy Read more
Metro Denver unemployment at 5.2% Read more
Colorado unemployment falls to 5.1% Read more
Colorado’s gains in manufacturing jobs outpace the nation’s Read more
Metro Denver population reaches 3 million mark Read more
Wildlife Experience donated to University of Colorado Read more
Centennial to begin Arapahoe Road Project Read more
Colorado obesity rate back to lowest in country Read more
GE to sell appliance business to Electrolux Read more
THANK YOU FOR YOUR BUSINESS AND REFERRALS!
If you or someone you know is thinking about buying or selling a home, please let me know. It would be my pleasure to work with you or your referral. My commitment to my clients is to treat them with the utmost care as they work towards buying or selling a home. Referrals are the core of my business and are always appreciated.
Free Real Estate Tools
When searching for homes for sale anywhere in the Denver metro area use this link, Interactive Map-Based Home Search. This interactive, map-based home search tool makes looking for homes fun and easy. If you are interested in a specific neighborhood, whether it is your current neighborhood or the one that you hope to move to someday, this site can send you e-mail notifications when new homes come onto the market. Happy home searching!
Please call me with your real estate questions. I’m always happy to help you navigate through this constantly changing real estate market!