Market Insights: Sold in 67 days: The fundamentals
October 26, 2012
Editor’s note: This is the second in a series of articles about how to get your property sold in 67 days. To view the first article, which includes an example of a $1,000,000+ home in Breckenridge that sold in 67 days, go to http://www.summitdaily.com and search for “market insights.”
The process involves a dozen simple steps: 1) Plan ahead. 2) Know the market. 3) Make the commitment to sell. 4) Select your Realtor. 5) Work as a team. 5) Prepare your property. 6) Explode onto the market. 7) Listen, listen, listen. 8) Take action. 9) Don’t worry, be happy. 10) Snag the right buyer. 11) Keep every commitment. 12) Sign on the dotted line.
There are three fundamental steps that come before selecting your Realtor. Over the years, I have found that sellers in Summit County dive into selecting a Realtor as their first action. Not a good idea. My colleagues and I are paid on commission, which means, human nature being what it is, the Realtors you meet are likely to encourage you to sell. That is not what you need.
Three aspects to think ahead about:
1) What you will do with the profit or loss.
2) The lifestyle changes the sale will trigger.
3) The timing of the sale that best suits your needs.
Regardless of whether you walk away for the closing with a check, or you step into it with a check in your hand (due to the loss), you are best to figure this out from the very beginning.
Let’s start assuming you have a profit. Do you have a use or need for the money? One of my current sellers plans to buy an engagement ring with the money. Another, earlier this year, used the money to pay off the mortgage on a primary residence. A third invested the money in the stock market the day of the closing. I don’t give two hoots what you do with the money, I just believe that before you proceed in the process, you are best to know.
Flipping the coin over is not much fun; however, ‘it is what it is.’ On Aug. 17, I had a seller arrive at a closing in Frisco with a certified check for $86,290.24. He said, “It’s OK. I bought the house at the peak of the market and I ended up with a tax write-off that I need. Heck, it is what it is.”
The title company closer could hardly believe how relaxed he appeared. One reason he was so easy-going is that I met him at a friend’s 60th birthday party and he asked me if I would market his home.
Over a beer I asked him, “When did you buy the house?”
“In November 2007.”
My next question was as straight-forward as it can get. “Are you willing to be bringing money to the closing?”
“Yes.” And that’s why he seems so unperturbed when, after 52 days on the market, his home was sold and he knew he had lost.
This week I had a closing that was really, really tough. This seller, a young woman under 30, paid $315,000 at the peak of the market and it closed for $200,000. In her case, my team and I negotiated a short sale with her bank so that she would not owe them any money. She walked away from the closing without a dime, a credit score that is in shambles and a gigantic smile. She was happier than just about any seller I have seen.
See you next week when we continue talking about the steps to take before you talk to a Realtor. Love life …
Daniel Webster Johnson is a very active, full-time Realtor in Breckenridge who has earned the national Quality Service Certified Platinum award, recognition of 100 percent client satisfaction. His is one of the team members at Resort Brokers Real Estate. He loves feedback so call him at (970) 393-3300 or him drop him a line at Daniel@YourMountainBroker.com.