May’s real estate statistics are largely a continuation of the previous. Most indicators – average sales price, number of listings and sales – are up, while days-on-market is down slightly.
Ask most observers to describe this type of market, and one adjective they’ll likely come up with is “hot.” Taken in this context, “hot” is determined to mean that demand is outstripping supply. This has the effect of pushing prices upward as a greater number of buyers compete for a lesser number of available properties.
Buyers will sometimes throw caution, and things like inspection, appraisal and loan contingencies, to the wind in a desperate attempt to secure their desired property. For sellers, on the other hand, all they need to do is put a sign in their front yard, sit back and wait for the offers to come pouring in. Right?
So, in this type of market, where does the local Realtor fit in? The answer is the same as it always is: at the center of the transaction, whether the market is hot or cold.
For those selling their homes, home sale statistics nationwide show that properties listed with a local, reputable real estate company sell quicker, and for a higher price, than those where the sellers choose to represent themselves.
Additionally, sellers who choose to represent themselves find the most challenging aspects of the home sale process to be arriving at an accurate market price, selling the home in a convenient time frame and understanding and performing their paperwork obligations.
The importance of having an expert on their side who can guide them through this process, interpret the strengths and weaknesses of multiple offers and act as a buffer between the respective parties does not diminish, whether the market is hot or cold.
Statistics also show that today’s buyers, despite being armed with an unprecedented array of market data via multiple websites and on-line forums, are turning in increasing numbers to a local Realtor when it is time to get serious about buying a home. While the internet can be a useful place to glean facts and figures, it is less helpful when it comes to understanding important factors like actual versus perceived value, neighborhood nuance or how the latest implementation of local statute will impact the long-term security and value of one property over another.
Additionally, there are multiple concerns that affect both buyers and sellers equally. Colorado real estate law sets strict guidelines when it comes to obligations of disclosure. What must a seller disclose about the past, present and future of their property? What questions does a buyer have the right to ask? What obligations are each party released from at closing, and which survive?
For most people, buying or selling a home will be the biggest financial transaction they undertake. Having a Realtor involved in the process maximizes both the efficiency of the transaction and the peace of mind of both parties, while minimizing the risk to either, hot market or cold.