The first day of spring is right around the corner, and Colorado’s housing market looks primed and ready for the busiest season of the year. As we touched on last month, we’ve seen a significant increase in new listings along the Front Range, with about 24% more than February of 2023. At the same time, many homes are only on the market for less than a month - the median days on market in February was about 26, more than a 10% decrease from last year. Some areas and price points are already experiencing the spring effect, but come April we’ll likely see the seasonal trends playing out in most if not all regional markets.
Whether you’re thinking about buying or selling, it’s critical to prepare for the heightened competition that comes with the spring market. As a buyer, you need to get pre-approved for a mortgage if you haven’t already, and be crystal clear on what you’re looking for. As homes begin to receive more offers and sell faster, you’ll need to be ready to make a move when the right home hits the market. Have a buyer’s consultation with your agent to make sure you both are on the same page, so you don’t waste time looking at homes that don’t fit your needs and criteria. Once you’re prepared, you need to be ready to make a competitive offer that will stand out with sellers - that’s where 8z’s modern buyer solutions can really make a difference. With our Cash Buy program, you can confidently shop for homes knowing you have a full cash offer in your back pocket, which is perhaps the most attractive option in the eyes of a seller. If you need to sell your current home, our Cash Buy Before Sell solution will allow you to buy your new home first with that full cash offer, then sell your current home on the open market once you’ve moved out, which will yield the highest return on your investment.
If you’re on the selling side of the equation, preparation is equally important. You’ll want to cover the basics like touching up your home’s curb appeal, utilizing professional photography, and addressing any minor repairs or improvements to your home’s interior. Even the small things can make a big impact - like fresh paint, new mulch, upgrading hardware like cabinet and door handles, or even outdated light fixtures. 8z can help you here as well with solutions like our Listing Concierge, which will cover the costs of any needed home improvements. You pay nothing upfront, then once your home sells you simply pay back that amount out of your closing costs. But if nothing else, there’s one thing you need to make sure you do before putting your home on the market...
So, what’s the most important thing to concentrate on when selling your home? The price - this is the most crucial component of your selling strategy, and you’d be surprised how many people get it wrong. In the pandemic years, you didn’t have to be as tactful here - homes were seeing so many offers that it was rare to be on market for more than a couple of weeks. But now that mortgage rates are much higher, sellers need to be more strategic to ensure that the home not only sells in a short amount of time, but also for the highest price. In short, consider listing your home for slightly below market value. While this may seem counterintuitive, we’ve seen this strategy work time and time again. Especially with our current interest rate environment, buyers are looking for the best deal, and a home that’s priced well will stand out among the competition.
Let’s say we have five different homes in a given neighborhood, all about the same square footage and features. All of those sellers list for $550,000, but one of them lists for $535,000. More buyers will be drawn to the less expensive listing, which will likely result in more competition, and hopefully a bidding war where the final sale price could be $560,000. If you’re looking for the greatest return and priced your home at $560,000 out the gate, you’d likely end up sitting on market longer than all of the other homes in the neighborhood, and you may even need to lower the price to get more offers. You never want to be in this scenario, so it’s critical to work with your agent to dial in a list price that will be attractive to buyers, while also making sure you yield the best return.
If you haven’t already, get in touch with your agent to get prepared for spring. By working with a professional that utilizes the best modern solutions, you’ll be sure to achieve your real estate goals this spring.
