The good news is it’s definitely not too late. The busiest months of the year for real estate in our mid/downvalley markets are July and August, so this is still a prime opportunity if you find yourself in a position where you need to sell. It usually takes a broker anywhere from one to two weeks to provide quality marketing materials in order to make the best first impression.
It’s still a seller’s market simply because of supply and demand. Inventory is low and demand is high for most of our markets in the Roaring Fork Valley. We all know luxury properties in Aspen-Snowmass continue to sell at high prices, but that’s not the direction I’m going or the story I’m interested in. When you start to understand real estate, it’s a pretty simple equation.
The question is, what if you’re a professional working-class person living in the valley who has a life-changing event that requires you to sell your home? Most property owners have discovered their monthly payments will double or even triple if they sell their current home and buy another property in today’s lending environment. Interest rates are higher and a lot of people do not want to let go of their lower rates. Still, sometimes life happens — divorce, death, birth, a new job — people might be in a position where they have no choice but to move. What then?
The first step is to speak with your real estate adviser. The most important thing is to price your home appropriately. The highest sale prices usually happen with properties priced in what I consider a fair-market value range. If you want to capitalize on your sale and make as much money as possible in the current market, you need to understand what the true value of your property is. If you are priced appropriately, then you’re going to get much more activity from interested buyers and that’s what’s going to generate quicker offers, and maybe even a bidding war, to drive your price a little higher. That is usually how you’re going to make the most money.
I know there are people out there who will research every improvement they think will increase their return on investment but let me spare you the trouble: It’s not necessary most of the time. With inventory as low as it is, most buyers understand that homes are going to need some work — to a certain degree, it doesn’t really matter what improvements you do. Most of the time, the best thing you can do is clean, declutter and simplify your home. When selling a home, less is more.
If you are priced too high, you will most likely need time for the market to catch up and you usually deter buyers from coming to look at your property and make offers. This happens all the time. The property will end up sitting, and the listing will get stale. Once you start racking up days on the market, don’t be surprised if you receive a lowball offer. Buyers become more suspicious and cautious about buying your home. The first question they’ll ask is, “What’s wrong with it?”
The answer is simple: you’re overpriced for your property’s location and condition. You are probably not going to sell soon either. If it’s priced “fairly,” it will generate activity and garner the best price. None of us can control the market, or when homes are going to sell, but a true real estate professional who lives and breathes real estate will help you get the most out of your property if you are willing to take their advice. Remember though, you get what you pay for.
For most, the best way to assess value is to look at comparable properties and calculate the value based on recently sold, pending and active comparable properties. Homes in your neighborhood that are similar in age, size and condition are your best comps. Location is the first thing to consider, then narrow it down based on size and condition.
In today’s high-demand market, if the house does not need to be torn down and is livable, the year a house was built isn’t going to matter too much with regard to your ability to sell. Older, more dated homes are going to sell for less than new-construction homes, but they will sell when priced appropriately.
Obviously, you want to make sure your property is as presentable as possible and the easiest way to do that is to simplify and declutter. I tell my clients to visualize an Airbnb that they have stayed in. We choose those Airbnbs because they look comfortable and inviting. That’s a great example of what a property should look like when you are trying to sell. Making major updates can help, but it is not always necessary.