July 19th, 2014 10:21 AM by Taydus Taydus, AHWD, CNE, CRS, GRI
heck is happening in the world of local Real Estate?! Part 2 of a 3 part series
explored last week, many buyers are experiencing frustration over the local
market and the lack of available inventory.
I work both Boulder and Broomfield counties and have seen both markets
(especially Boulder) hit with low inventory and rising home prices. There are multiple factors that are
contributing to the situation:
are hesitant to sell for fear that they will not find a replacement home.
inventory is putting sellers in the driver’s seat, and is encouraging them to list
for an inflated price.
market – especially within the City of Boulder – is flooded with sophisticated
buyers that can often afford to pay cash for their purchase, thus paying the
high prices sellers are demanding. This
makes it complicated for a buyer that needs to finance to submit a competitive
new sale at an inflated price raises the bar for the next listing – each sale
continues to build upon the last, causing home prices to keep rising.
For now, this
is the nature of the local market. So
you have outgrown your home, and you are ready to move up…what should you do? This is part two of a three part series that
will take a look at some suggestions as to how to best navigate today’s market
based upon the unique needs of the seller / buyer looking to move up. Please check out next week’s blog when we
discuss the unique needs of the “Getting Ready to Downsize” buyer / seller J
Selling and Moving Up!
This can be
a very exciting and also a very stressful time; often times buyers in your
position need to close on the sale of their current home, in order to purchase
their new home. Timing is everything. Having
an experienced Realtor to help coordinate the sale of your home with the
closing on the purchase of your new home is imperative.
Get your finances in order. If you are financing your purchase, you need to speak with a
lender ASAP. A good lender can advise
you how to best structure your loan and assist you along the way so you avoid
any pitfalls that could potentially derail your financing. Your lender and Realtor work as a team to
make all of the pieces fall into place.
You may also have financing options available to you just in case you
find that “perfect home” and need to submit a competitive offer before you
close on the sale of your current home.
Check out my Service Provider Directory for the names of some reputable,
List your current home. Once your finances are in order and you understand your
options, put your home on the market and start looking for your new home. This is where communication with your Realtor
is imperative. There are options that
may be available to you that you are unaware of. You may be able to delay the closing on the
sale of your home, or do a “rent back” to give you extra time to find your new
home. These options allow you to move
forward with the sale of your current home (and not miss out on a strong
seller’s market) and still have time to find a replacement home.
Be realistic! As a seller you need to be
realistic about the condition of the home you are selling and price it
accordingly – this is where you need to trust your Realtor, remember your
Realtor is there to help you and they want to see you succeed! Be realistic about what you really need to get for your home (this
may be very different from what you “want” to get). In this market you will hear a lot of stories
from well-meaning friends, neighbors, etc. about the value of your home. Your Realtor will discuss the most recent
comps with you and go over what you can realistically
expect for your home based on your home’s current condition, location, and what
the market in your area will support.
Keep in mind that getting greedy based on market hype will benefit no
one, and could derail the sale of your home and stall your plans to move on. Stay focused and don’t lose sight of your
objective; to move up into your new home / location.
It is also important that you stay realistic as a buyer. Moving up into a more desirable neighborhood
/ school district and / or into a larger home may mean that you need to see the
“potential” in your new home. It can be
difficult to leave behind a home that you have improved and fixed up, only to
purchase a new home that needs paint, or maybe a kitchen / bathroom
remodel. But try to stay focused on the reasons you are moving; more square
footage, better public schools for the kids, a bigger yard or garage. Staying focused will help you see past any
eyesores that can be remedied in time.
Remember, updating a kitchen is doable. Location and school districts are not something you can “fix” but
will help you gain more equity in your new home. Keep your eye on your motivation for moving and what is important.
The good news is that you may get more for the sale of your
current home. The reality is you are
probably going to pay a little more for your replacement home.
Most importantly work with a Realtor! We are the ones that
are out here working the market day in and day out. We see the different scenarios and can advise
you about market value, and what strategies work best. Remember, your Realtor is on your side and
wants to help you J
the challenges of the current market there are steps you can take to achieve
your goals if you are willing to be realistic, keep an open mind, and stay open
to new possibilities!
Again, it is
more important than ever to engage the services of a licensed Realtor that is
accustomed to working with buyer / sellers that need to sell in order to buy,
and can assist you with your unique needs.
You will need to be ready to act quickly when the right home comes
along. Your Realtor can help you so you
are prepared and don’t miss out on that “just right” home.
I work with both buyers and sellers
and am available to answer any questions you may have!