You’ve heard the expression “Sell the sizzle, not the steak.” Selling a home is just like marketing any other product. The more effort you put into the marketing, the more results you are likely to see in terms of activity and offers.

The first thing to realize is that whatever condition your home is in, it probably is not in “show” condition. There are items we learn to live with to the point that we forget the little eyesores and honey-do’s that never got done. Over the years, clutter accumulates. Our eyes adjust to that low light and that fading paint color. We love the home as it is, and fail to see what the home is like compared to others. Other homes – your competition – may be in show condition. If yours isn’t, it will look tired by comparison.

Second, your buyer is going to view your home with the opposite attitude from yours. You are presenting something you are proud of – the buyer is going to do his/her best to find as much wrong with it as possible. If they find too much wrong with it, they’ll walk. If they like the house, they will try to find enough wrong with it to make a lower offer. The reason they do that is to get you to lower the price. Remember the buyer and the seller have opposite goals. You are trying to sell the home for the most money – the buyer is trying to buy it for the least.

Your best strategy to stick to your goal is to disarm the buyer before they even get through the door. Make them want the house so much from the time they drive up in front that they are willing to come up in price to get it.

That’s called curb appeal.

What makes curb appeal? Curb appeal is an intangible, subjective quality – but it is the one thing that can really sell a house. It is that quality that makes the buyer start thinking emotionally instead of practically. It builds desire, the desire to own and to live a certain lifestyle that the exterior of the home appears to advertise. It can take you back to your childhood to when you had a home just like this one with the flowers in the front and the winding walkway to the door, and a beautiful brass doorknocker on the front door. It is the quality that makes you want to go inside.

That is why if you have a limited budget to spend on marketing your home, you want to put the majority of it toward sprucing up the front entrance to your home. And a lot of improvement you can do with a little elbow grease. Here are a few ideas.

* Clear away anything dead – dead leaves, dead flowers. Trim the trees, clean up the flower beds.

* Tune up the grass – make it as green or greener than your neighbors. Clean up any winter kill.

* It’s spring time so plant some blooming flowers for color. Add some potted plant containers.

* Paint the front door, trim, fence and anything else that needs painting. Try to choose a neutral color that goes with the brick, roof or trim of your home.

* Open the front curtains. Clean the windows. Turn on the lights.

* Put out a clean, new welcome mat.

* Check out your gutters and downspouts.

* Consider repairing or redoing the concrete flatwork if it is severely cracked or dangerous.

* Polish the brass doorknocker, the mailbox, light fixtures, and address numbers.

* If you have a front porch, keep it swept clean.

* Take the hose and wash down the front of your home removing the winter dirt and grime. And while you are at it, you may as well do the rear and the patio.

* Keep the garage door closed. Make sure it is clean. Put bikes, tricycles and children’s toys out of the way.

* Safely lock away pets. If you have a pet that remains in the back yard, let the showing agent know in advance. If your dog is a barker, overly protective, or otherwise ill mannered, arrange to board it or take it with you during showings.

What your buyer sees from the street is the first impression they will have of your home. You want it to be a good one, especially if there is a home down the street for sale that may be a little bit prettier, a little bit bigger, or a little bit less money or something more. Don’t worry, you aren’t out of the running yet.

Remember that your buyer’s first impression of the exterior of the home is important because it sets the tone for the rest of the buyer’s walk through. If the buyer has fallen in love with the exterior, they will look more favorably on what they find inside.

Ask your real estate professional to critique your home and offer suggestions for developing curb appeal. And then, get started inside!

The real estate sales figures that we report each month are calculated from information received from IRES which is the multi-list service owned by the Realtor brokerage firms in northern Colorado. The Fort Collins figures are ‘Area 9’ as reported by IRES and includes all of northern Larimer County from CR 32 north to the Wyoming border. In addition to Fort Collins, this includes areas like La Porte, Bellevue, Livermore, Red Feather and Wellington. It also includes areas on the east side of I-25 like Ptarmigan but it does not include Highland Meadows or any of the areas to the south of the border line. These home sales are reported in the Area 8 sales which include Loveland, Berthoud and all the areas in south Larimer County.

Homes with a Fort Collins mailing address account for 85 to 90% of the sales in Area 9. The home sales reported are actually a total of all residential sales, as opposed to commercial, investment and farm properties. There are four sub categories of residential sales: single family detached homes both new and resale and attached homes new and resale. The largest category is single family resale homes which make up about 70% of the total sales and total resale including detached and attached are 85% of total sales. New home sales make up the balance.

The sales for the first three months of 2008 compared to 2007 are shown on the chart. March is the seventh month in a row with a double digit decrease in sales but we have now rung up five consecutive months with an increase in the average selling price.

By sub category, sales of single family resale homes are down 13.8% for the first quarter and the average selling price is up 7.9% to $272,790. Resale attached homes are exactly even with a year ago and the average selling price is up 5.9% to $150,059. New home sales are down 25.3% and the average price is up 0.7% to $350,892 and new attached sales are down 31% with an average price of $236,686, an increase of 13.8%.

One reader has questioned whether the local market has actually experienced an increase in the average selling price, calling into question the statistics with the old line: “there are lies, damn lies and statistics”. Naturally with the very narrow average price increases we have experienced over the last few years; like a total of 3.4% since 2005 and less than 20% compounded since 2002, there are going to be examples of some homes which have not benefited by appreciation. With the choices that buyers have today, any home that does not show well, has not been sufficiently maintained or is in the ‘wrong’ location, is going to be a challenge to sell in this highly competitive environment. And given the costs to sell a home it is certain that some sellers have taken less than what they might have invested in their home.

But the local average price increase seems to be supported by the quarterly reports issued by the Office of Federal Housing Enterprise Oversight (OFHEO). They prepare a ‘purchase only’ house price index (HPI) from data reported on mortgage financings on same home sales. In other words, they are not using average or median prices but they are tracking the change in value on the same home over a period of time whenever that home sells. Their most recent report covering the fourth quarter of 2007 showed a 1.8% one year increase in the Fort Collins – Loveland metropolitan district. This is exactly the same as the 1.8% increase in average price that we reported for Area 9. For the last five years OFHEO calculated a 12.3% increase which is somewhat less than the average price increase of 19.2% reported using IRES figures. This difference however is not out of range statistically, averaging just more than 1.0% per annum.

As we have repeated many times, the bad news is we never got to participate in the double digit annual home price increases experienced in many areas of the country over the last few years but the good news is, we are not facing a depressed market with declining home prices.

Pam & Dave Pettigrew, Real Estate Brokers and Certified Residential Specialists are available to answer your questions on real estate. Write to them at Prudential Rocky Mountain, REALTORS, 2700 S. College, Fort Collins, 80525, call them directly at (970) 282-9305 or email FCRealtor@msn.com. For an archive of past columns and market information visit their award winning web site at www.FortCollinsRelocation.com

Supply and demand is the driving force behind the pricing and marketing of most commodities. If the supply is increased without a corresponding increase in demand, prices tend to decrease. Alternatively, if there is an increase in demand without an increase in supply, prices tend to increase.

Real estate is no exception. Our local real estate market has been helped by a reduction in supply which in turn has helped to maintain selling prices. A balanced real estate market is considered to be a six-month supply of homes. One of the problems on the national scene is that the inventory of homes for sale has increased from a 4 month supply to a 9 month supply over the last couple of years. The inventory or supply is the actual number of listings for sale at any one time. The demand is usually calculated based on the last twelve months of sales.

As shown on the graph, the current inventory of active listings in the Fort Collins area is 2,028 homes. The sales over the last twelve months have totaled 3,550 homes so the demand is 296 per month. The inventory therefore equates to a 6.9 month supply based on demand over the last year. This is in the buyer’s market territory but supply / demand / days on market vary significantly by price range as shown in the table.

In the price range up to $300,000 there is a fairly balanced market but it certainly turns into a buyers market in the higher price ranges. Homes priced above $400,000 are in the top 10% of the market with just 31 sales per month. The current inventory of 448 homes is equivalent to a 14 month supply. The top 5% of the market is homes priced above $500,000 and the demand for just 16 homes per month gives us a 19 month supply. Based on sales, there is a two to three year supply of homes priced above $750,000.

We have to remember that these are averages and in almost any price range there will be a home that sells in a matter of days and there will be another home that will languish on the market and be passed over again and again because it is not in the same condition or does not have the same appeal of other similarly priced properties. As a seller you need to remember that your home is in competition with a lot of other homes in the same price range and the more homes that are available the tougher the competition. As a buyer, you are also in competition with other buyers looking in the same price range for the same features you want. If there are more homes for sale than the current demand can support, you may have the luxury of time, but the home that represents the best value can still sell quickly.

Both sellers and buyers need to discuss strategy and have a plan in place prior to beginning the process of buying or selling. For assistance in this planning you should rely on the services of a real estate professional.

Pam & Dave Pettigrew, Real Estate Brokers and Certified Residential Specialists are available to answer your questions on real estate. Write to them at Prudential Rocky Mountain, REALTORS, 2700 S. College, Fort Collins, 80525, call them directly at (970) 282-9305 or email FCRealtor@msn.com. For an archive of past columns and market information visit their award winning web site at www.FortCollinsRelocation.com

04/05/2008

Finding and purchasing a newly constructed home is a completely different experience that looking for a resale home. In the case of the resale home a potential buyer may have difficulty looking past the clutter and condition and picturing them living in the home. Many resale homes do not show well, particularly when compared to builder model homes which may be loaded with upgrades, features and options and are professionally designed, decorated and furnished to show at their best.

Another difference is that interested buyers will normally have to be accompanied by a real estate agent to look at resale homes while a visit to a new home builder model can be undertaken like visiting an open house, with even more convenient hours.

It is wise to remember however, that, just like a professional real estate agent can assist you with researching and finding the right resale home and helping you with the offer and working through the myriad of details as you proceed to closing, they can also play an important role in helping you find and purchase a newly constructed home. It might not seem necessary to involve a real estate professional in a transaction where a buyer can deal directly with a builder. However, by using a real estate professional, you have someone to protect your interests and guide you along the right path. Here are 10 advantages to using a real estate professional when buying a newly constructed home.

Just as a real estate professional calls on experience and knowledge of an area to help buyers locate pre-owned homes in a community, he or she can also direct buyers interested in newly-built homes to developments and communities that match client specifications.

A sales professional can suggest builders with reputations for delivering a high-quality product, responding quickly to issues, and being financially sound.

A sales professional may be familiar with how a builder prices his products and where there may be room to negotiate price or upgrades.

Without representation, you are one buyer purchasing only one home. But a sales professional can significantly impact a builder’s bottom line by providing a steady supply of customers. This leverage may work in your favor at the negotiating table.

The lender approval process may go smoother if a sales professional schedules visits, accompanies you to lenders, and helps expedite required documents.

What may seem like a simple transaction can grow legally complex and risky. On signing a contract you may receive literally hundreds of sheets of papers and documents, covering not only the purchase contract but soils information, builder warranty and other disclosures, home owner association documents, covenants, conditions and restrictions, lists of options and upgrades, title and closing information and much more. A sales professional is familiar with these documents and with the complexities and risks inherent in the home buying process. They can explain the process to you and when questions arise, they can steer you to the right advisors and services you may require.

When relocating to a new area, sales professionals can be particularly valuable resources. In addition to providing local area information regarding schools, day care or elder care services, public transportation, proposed development, and so on. Once construction is under way, they can periodically stop by the work site, supply you with progress reports, and photograph or videotape phases of the construction.

A real estate sales professional can assist you as you face hundreds of design choices and consider which upgrades could potentially add value to the home when it comes time to sell.

A sales professional can accompany you at the site while you okay the plumbing and electrical locations prior to dry walling, as well as on the walk-through or builder orientation.

Lastly, most often the builder pays your sales professional’s commission. You enjoy individual attention and support at no cost to you.

The most important thing to remember is that if you decide to utilize the services of a Realtor to assist you in finding and purchasing a home from a builder, you need to select that person at the beginning of the process. Most builders require you to be accompanied by your agent when you first visit their model home or, at the very least, to register the name of the agent you will be using should you decide to purchase from that builder. This requirement is usually posted at the sales office / model home, if not be sure to ask about the registration procedure prior to signing at any builder model home development.

Pam & Dave Pettigrew, Real Estate Brokers and Certified Residential Specialists are available to answer your questions on real estate. Write to them at Prudential Rocky Mountain, REALTORS, 2700 S. College, Fort Collins, 80525, call them directly at (970) 282-9305 or email FCRealtor@msn.com. For an archive of past columns and market information visit their award winning web site at www.FortCollinsRelocation.com