Saturday, January 10, 2009

STATE OF THE MARKET - PART 1

Over the next few days, I thought we'd take a look at some statistical components of our market.

Although overall active inventory is down over 20% from one year ago (a good thing), understanding what that actually means is something different.

Here's a look at the ratio of active homes on the market to properties under contract in a selection of price ranges:

0-$250k: 2.36 homes on the market for each one currently under contract

$250k - $400k: 7.13 homes on the market for each one currently under contract

$400k - $600k: 10.30 homes on the market for each one currently under contract

$600k - $1 million: 18.61 homes on the market for each one currently under contract

$1 million and above: 31.64 homes on the market for each one currently under contract

When you consider that two-thirds of the traffic your home is likely to receive will occur in the first 30 days on the market, can you see how important price and condition are to getting the result you want?

Terrifying statistic, courtesy of Lon Welsh: last year, over 50% of all homes listed for sale in the Denver MLS did not sell. They were withdrawn, expired or (worse case) foreclosed upon.

Deciding to List vs. Committing to Sell

DECIDING to LIST your home for sale is NOT enough. You must COMMIT to SELLING it, and that means focusing on price and condition. It's a beauty contest and a price war. And it takes marketing to attract buyers.

If you're thinking about selling in 2009, let's talk. I offer my sellers a 71-point marketing plan that ensures their homes will be seen where buyers are looking for them. Over the past two years, my listings have sold in an average of 44 days, when the market average was over 100. You must understand the market you are in, you must price them right, and you must promote your properties where buyers will see them.