Tag Archives: Colorado Springs REALTORS

December 2010 Market Report: A Difference of 10%

Moving into 2011, there are several trends worth paying attention to:

  1. Buyers are refusing to pay top-of-market prices. Quite simply, price sensitivity is enormous. If a home is nice and of interest, but overpriced by 2 or 3%, a buyer simply won’t offer. Last month in Briargate, the price differential (sold price divided by final list price) was 99.5%. In Central, it was 104%.
  2. There is really no such thing as an improvement or updating to a home any longer. Updating or improvements are expected and required for a home to sell at market value. A home that doesn’t have updating or improvements still might sell, but at a fractional percentage of market value.
  3. The buyers are younger than ever (47% of buyers in the last 12 months were first-time buyers. Average age of first-time buyers: 30).
  4. Sellers are wising up to these trends and getting increasingly aggressive with their pricing, matching it to market needs.

For the year, there have been 15,927 new listings (a 4% increase over 2009, but the pace of listing has slowed since August). There have been 7,554 sales (down 7.0% from 2009). In normal every day terms, a 4% gain here and a 7% drop there are incremental movements. That is not the case with these percentages. The probability of sale marketwide this year is 47.4%. At this time last year, the probability was 53.0%. That is a 10.6% difference in probability. That means it is an additional 10% MORE DIFFICULT for a seller to sell their home this calendar year than the previous year.

That 10% is expressed in Buyer’s Actions. Buyer’s are:

  • 10% more price-conscious¬†¬†¬†
  • 10% more suspicious of defects
  • 10% more demanding of perfect condition
  • 10% more likely to expect updating carpeting, paint, lighting and plumbing fixtures
  • 10% more likely to associate this “updating” as “standard” and not as “improvements”

The big question moving forward in 2011 is who the buyer will be. Will the buyer be as tough and as demanding as the 2010 Buyer? Will the buyer be making cold-hearted economic calculations on every single decision? Or will the buyer be a different buyer, one who is moving on with life and has to actually buy something to change a situation that is no longer tenable? (job relocation, expanded family, marriage, divorce, long commute, change in lifestyle… you know, the reasons people used to buy homes)

What the Consumer Wants Now

It is foolishness for the real estate profession to say that they know what the consumer needs now. That answer is so obvious (sarcastic emphasis intended). Consumers clearly NEED to buy, right? Say YES to this contract. Say YES to this lowball offer. Say YES to this uninformed decision.

Press hard. Five Copies. Even on e-contracts.

Really?

Pick apart the differences between the words Need and Want. Move from “Need” to “Want” and the consumer becomes a far more complicated animal. All of a sudden, they don’t “Need” to buy anything. They don’t “Need” to accept an unfairly low offer. They don’t “Need” advice. They really don’t “Need” anything. But they do “want” somethings.

They want deep smarts.

They want objective data.

They want pricing presented in many different ways.

They want to understand the risks of their decisions, and implications of outcomes.

They want empathy.

They want consistency.

They want options.

They want accessibility.

If things stand in the way of giving the consumer what they want, and instead, propose from some ivory tower that this is what they need, consumers tend to act like cats being summoned inside.

They run away.

Our goal in business is to listen to what you want.

Benjamin Day and Hannah Parsons have formed Pikes Peak Urban Living at The Selley Group. Today is day one of boutique brokerage empowering consumers with both measurable data and human empathy.

Small is the New Big: Pikes Peak Urban Living

The Catalyst of Change in the Real Estate Market

The over-used word of the decade is synergy. People drop the word with such frequency, it dilutes the power of it’s physics-defying implications. Wiktionary says it means this: Synergy, in general, may be defined as two or more agents working together to produce a result not obtainable by any of the agents independently.

Flush it out: one can be one, but it will never get to two, let alone three by simply being one. Unless another agent comes and acts upon, through and with the first agent, nothing happens. No one (or thing) goes anywhere.

People know they like synergy. They know they want synergy. But how often do you actually see synergy?

How about a band of REALTORS realizing efficiencies, holding one another accountable to growing their business and their lives, and posting things like this on their website: Core IdeologyOur brand is fresh, healthy, progressive, innovative and forward-thinking. Succinctly stated, our core ideology focuses on education about real estate over the “profit-driven” tactics of sales. Our clients’ interests become our interests. We are meticulous about hearing the true heart of our clientele, and we thrive on providing better solutions so our clients might experience the fullness of Colorado living. Well said, Gordon & Cherise.

Multiply that times two.

Now multiply that by two, again.

Can you hear it? It’s the sound of small making a big noise…

Benjamin Day and Hannah Parsons have formed Pikes Peak Urban Living at The Selley Group. Today is day one of boutique brokerage empowering consumers with both measurable data and human empathy.