Many people assume that after Labor Day the real estate market shuts down for the winter. Not true! It is very common for real estate sales to remain strong throughout the fall. This year is no exception. We are seeing activity throughout the market. Many buyers are taking advantage of low interest rates and wanting to be settled before the holidays.
Each week I track the real estate market activity in Boulder County. I track the number of new homes which came on the market, the number of price reductions, the number of homes that went under contract and the number that closed.
Through the first three quarters of the year sales are down roughly 7% from last year countywide. However I expect that we will cut into that deficit this month. Since the second week in August, weekly sales this year compared to last have been higher on a weekly basis. The only exception is this week. Given the common lag time of 30 – 45 days between contract to close I predict that this October will be stronger than last. The graph below shows weekly under contract data for Boulder County for 2010 and 2011. The second graph shows sales so far this year compared to last.
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Today was a beautiful fall day in Boulder. The leaves have not yet changed in town but are past their peak in the high country. I took a walk through campus and many students were enjoying the beautiful lawns.
The month end real estate statistics for Boulder County during September did not keep up the pace we had seen over the past few months. Sales were almost exactly equal to what we saw one year ago. Sales year-to-date continue to lag 2010 by approximately 7%. We are now heading into fall where we normally expect sales to start decreasing as the holidays approach. The weekly numbers of properties that have recently gone under contract show promise that we will still have a chance to eclipse 2010’s year end sales totals by the end of the year.
Interest rates are still super low so I’m sensing that there are buyers out there taking advantage of this great opportunity to lock in a low payment.
There are many tactical ideas about real estate negotiation but in my opinion not enough is said about the emotional relationship between a buyer, a seller and an agent. Buyers and sellers don’t often meet in person. This can be a very good thing in many ways because the agents take the direct confrontation out of the process. But the downside of this lack of interaction is that buyers and sellers don’t get a chance to make a personal connection. They don’t get a chance to like each other. Their first interaction is the offer for purchase and this can be a very explosive introduction. “Hello Mr. Seller, nice to meet you. You don’t know me but I like your house but I think you are stupid to ask that much. I only think your house is worth $xxx. Oh, and by the way I want to keep your refrigerator, your window coverings and your grandma’s chandelier.” This usually doesn’t inspire an invitation to dinner.
Stephen Covey’s idea of an emotional bank account in “The 7 Habits of Highly Effective People” can be easily translated to the parties in a real estate transaction. Watch the video to see what a buyer, seller and agent can do to make friends with the other sides of the transaction. In doing so, negotiations will go much more smoothly and buyers and sellers won’t mind sitting together at the closing table (this by the way is getting less common).
Advice for Home Buyers:
Don’t make an unreasonably low offer.
Don’t ask for personal items which have been excluded from the sale.
Don’t be unreasonable and uncaring toward the seller.
Do write a personal letter so that the sellers can get to know you as a person (family).
Do compliment them on their home.
The goal is for the seller to want you to live in their home.
Advice for Home Sellers:
Have the house in tip top showing condition.
Fill out all disclosures accurately and thoroughly. Don’t try to gloss over the details. Giving more detail will earn the Buyers trust and respect.
Respond to offers quickly.
Keep the communication lines open.
Advice for Realtors:
Treat the other Realtor with respect, courtesy and go in with a win-win attitude.
Remember that you are not the one who is buying or selling. So don’t make decisions for your client. Lay out the options and let them decide.
