Historic evidence shows us that at any given time in a healthy real estate marketplace that 25% of its standing inventory should be under contract at all times. This is not the case in Boulder’s luxury real estate market and it concerns me. Are we really in a healthy place or are we fooling ourselves? I think the latter and the numbers and statistics are proving me right.
So … it is time for our friends and clients to take note and make real changes. Price Changes! In the past I have on occasion lost listings to other brokers. On my exit interview with the seller I have more often than not heard “ Why didn’t you tell me it was price, we are flexible”. Well now it is official, we need price reductions of some consequence to function correctly to get us back to normal.
If there are 115 homes listed over $2,000,000 and 5 of those homes are currently under contract, we actually need 25-30 homes under contract to mark the bottom of the market and put full recovery under way. I want our listings at Colorado Landmark, Realtors to lead the way to that recovery. So when people ask me about the local real estate market, market recovery and the “reality of realty”, I would love to say we lead the way from stagnation to normal and beyond.
Sellers … here is your mission for the next 90 days:
- Lower your listing price – your agent can help with strategic price positioning
- consider owner financing as a way to attract additional buyers
- stage your home and don’t forget about the front yard
- anticipate and neutralize known cosmetic or maintenance issues that could pull buyers off the fence in the wrong direction
- look into solving buyer problems with creative ideas and methods, such as exchanges and leasing options
… and most of all, full out effort by the whole team – sellers, agents, and companies.
We can do this and do it together. Don’t come to me months from now and say “I wish I had lowered my price for the spring market” and be disappointed that you are headed into next fall or winter still sitting on the sidelines. Now is the time!
Owner / Managing Broker
Colorado Landmark, Realtors