By Michael Hughes February 15, 2010 *Please leave comments*
Ockham’s Razor: “Everything should be made as simple as possible but not simpler.”
A seller the other day said “Why am I getting such a low price for my property?” Well in most areas it’s a buyer’s market right now. The market is telling us that the price for your property is too high for the type of property it is. The market is screaming “lower your price.” I don’t make the market I interpret what the market is telling us by buyers buying or not and sellers selling or not at a given price. Who tells you what your property is worth? The buyer who is willing to buy it at a given price.
Some sellers will say “well there is a buyer for every house and there’s a buyer out there for my house.” I say they are absolutely correct. Unfortunately that buyer was just born 3 days ago at Boulder Community Hospital.
The great thing in the market today is this. And this hold true for whether you are buying a home in Boulder or selling a home in Boulder. If you are selling a property and buying a replacement property you may get less than you think you should get for your house when you sell it. The up side to this is that you will most likely get a great deal on your replacement property off setting any loss you may have perceived initially on the sale of your property.
As a Realtor® I utilize a system called Velocity Marketing™(Quantum Management Systems). This system is very similar to what a traditional economist would do in looking at any commodity or shelf life of any inventory, it predicts market activity. VM™ begins with the traditional approach to identify a likely listing price. Then the market attributes for properties that demographically profile. The formula used predicts the price at which a specific property will turn over. The more turn over, the more pressure on the price of the property, i.e. appreciation or depreciation. The belief is because this system describes the buyers attitudes toward future purchase and therefore more accurately the market. This system gets houses priced properly. The results are quickly apparent.
If you have questions regarding this article or Boulder Real Estate please call me 303-359-6627 or e-mail Michael Hughes at Fuller Sotheby’s International Realty in Boulder, CO
