I have heard that there is a shortage of houses on the market in Eagle County. Does this mean that we can finally list and sell our house at the price we want?
Dear Price Maximizer,
The answer to your question is a qualified “yes.” Of course the qualification I am speaking of is what you consider “the price you want” to be. If it is unreasonably high, then the answer is no ... not yet; unless your home is in an extraordinary, prime, luxurious location and then often you can command the price you want because you have a one-of-a-kind property. The fact that there are so few of these special properties definitely supports your theory that the “shortage” can drive the price up. It is the basic law of supply and demand.
If your home is located in a good, but not necessarily a spectacular location, you should discuss what pricing you can get in today’s market with your trusted Realtor, and hope that you might be pleasantly surprised.
I worked with a family that needed to get a minimum amount for their home or it was not worth selling, as they would not have enough money to go on to their next home. We discussed the family’s plans for two years during the downturn. Then, in the last six months, I called them because their neighborhood finally had a shortage of inventory, especially well maintained homes. We put their home on the market immediately and were able to get the highest sales price that the neighborhood had in the last three years.
Price is an extremely important part of any sale, but there are three other factors that have a lot to do with maximizing your sale opportunity. According to the Harvard MBA curriculum, there are the 4 “P’s” of selling: product, place, promotion and price . The product is your home and it definitely matters what condition it is in compared to the other homes in your area. The place is your location in the valley and your specific location within your neighborhood. Promotion is your trusted Realtor’s expertise. Today’s marketing takes an ability to consistently tap into the Internet via a multitude of websites, multiple MLS systems, international marketing sites and much more. Print media has a place, but has definitely taken a back seat to the Realtor that has the Internet connections to have your property exponentially marketed to local and international clients. Price has been the topic of this discussion from the start. The important part in today’s market is to not overprice, but rather to hold firm to the price you list for. Buyers won’t look or make an offer unless they perceive that they are getting a good value. So don’t start way over your target price — it will not help in the long run. Call a knowledgeable Realtor today and see if you can accomplish your goals in today’s improving market.
Joan Harned is an owner/broker for Keller Williams Mountain Properties and heads up Team Black Bear, her own real estate team of qualified experts. Harned has been selling real estate in Eagle County for 27 years, is a past chairman of the Vail Board of Realtors, past Realtor of the Year, past director on the Great Outdoors Colorado Board and a member of the Luxury and Land Institutes. Contact her with your real estate questions at firstname.lastname@example.org, 970-337-7777 or www.teamblackbear.com.