Real Estate Articles

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Should I Drop My Listing Price?

 

How To Set your Listing Price

This question of whether or not to drop your listing price comes up often. Of course, everyone wants to get the best price possible for their home. We also know that if a house is priced too high, it signals to the market that a seller is not ready to sell and your house may be ignored by some potential buyers. So it’s important to know how to set the price…and know when to drop the listing price.

Pricing your home requires a specific formula, but a key factor is your competition – other properties listed nearby. For example, let’s say you are selling a 10-year-old post and beam home with 5 bedrooms and 5-1/2 baths. We would look at other similar homes that are currently on the market. You would assume that a potential buyer would see all other post and beam homes in that price range. You must think like a buyer. Buyers are always trying to get the most for their budget. Which one would you buy?

Secondly, we would also look at similar homes that have sold in the past year. This gives us an idea of the average length of time homes in this price range are on the market, as well as an average cost per square foot.

So now that you’ve set your listing price, how do you know when its time to drop the listing price?

Dropping your price on a house is a decision that clearly affects your net proceeds. When we take a listing we always tell our sellers to leave some room for negotiation, and plan on a couple of price reductions if needed. So always have that bottom line in your mind when you are pricing. Many times the sellers here in the mountains will just wait until the market reaches their asking price. Our resort real estate market in Breckenridge is not the same as a primary residence market, where you have to move by a certain date for a job change or children transferring schools etc.

You should also have an idea of how quickly you want to sell. Are you in a hurry to sell, or are you ok with carrying it a while longer? Can you continue paying the mortgage or taxes and any other ongoing obligations? These things should be into consideration when dropping the price also.

Keep in mind that when negotiating on a house, if you have reduced your listing price, the buyer will not see that as a negotiating concession that benefits them. A potential buyer is making an offer on the current price only (but their agent will likely share the listing history with them).

Signs That It’s Time To Drop Your Listing Price

Should I drop my listing price

One of the biggest indicators that a listing price is too high is feedback from other Realtors. If you are getting feedback after every showing that your home is priced too high, then we know that it is true. Of course, you will always get a few people saying this but if we are consistently getting this feedback, it’s important to pay attention to it.

Know that dropping your listing price is not uncommon. It doesn’t mean your home has a stigma or something is wrong and that is why it isn’t selling. While this may be the case in many areas, we are a seasonal resort market. We have a constant flow of buyers different times of the year and from different parts of the country, so it isn’t the same as when there is a fixed group of local buyers looking at a particular neighborhood and waiting for something to go on the market.

Another time you should think about dropping your listing price is if the homes around you or in the same basic price range are selling and yours is not.

The bottom line is: if dropping your price gets you to the next place you want to be, then it is the right thing. If you can hold on longer then at some point the market will rise (hopefully) to meet it.

Roger and Teresa have 22 years of experience selling properties in Summit County and have learned the ins and outs of pricing. They can walk with you through the process of choosing a listing price. Let this expert real estate team sell your home in Summit County and get you the best price possible.

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Why We Love Summer in Breckenridge

Summit Activities in Breckenridge

In Breckenridge, we have a saying that we use to describe our area. “I came for the skiing, but I stayed for the summers.” Yes, Breckenridge is an international ski resort. That is what it is known for and has been for many years. And the skiing is some of the best in the world.

But in the past decade or so, we have also seen a huge influx of tourism descending upon us in the summer months. Everybody is catching on that the summer here in Breckenridge is outstanding!! We now have people that come to bike, hike, paddle board, camp, attend music festivals and parades, mountain bike, etc, etc. No longer is summer the slow season.

The Activities

The town of Breck puts on many activities that you and your family will love. GoBreck.com, the local tourism office, hosts arts festivals, beer and wine tasting events, concerts and two classical orchestras to name a few. The best place to find out what to do here in the summer is www.gobreck.com. They will list all the upcoming events.

We also have a new Backstage Theater with great live performances.

Family Adventure Park

Vail Resorts put $9,000,000 in to the family fun adventure park a couple of years ago. Vail did extensive research to substantiate their major renovations to Peak 8 for this park. This is good news for all property owners. There is much construction going on here in the Breckenridge summers. Lots of construction means a healthy market.

So Much To Do

What to Do in Summer in Breck

The good news beside the fun to be had here in Breck: if you don’t find something you like, then you can go to Dillon for some free outdoor concerts on the lake or a great Farmer’s Market in the summer. Silverthorne, Keystone, and Frisco all have great activities. We sell properties in all of them!!

If you are a homeowner in Breck, or looking to buy in Breck, this is great news for your family to have all these activities to enjoy. If you are an investment-minded person, then the benefit to you is that a few years ago the summer rentals were minimal and if you made a few dollars that was a bonus. Now it is a substantial amount to add onto your yearly rental income. As the summer income builds, so does your repeat business on your investment property.

Breckenridge summers are a must-see. It is a whole different feeling. Give us a call to see what Breckenridge summers have to offer!

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5 Things to Think About Before Buying a Home in Breckenridge CO

You can see it now: your serene mountain dream home, nestled among the trees and wildlife. You and your family speeding down the slopes. But before you buy a home in Breckenridge, there are things you should know. Living in the mountains can be peaceful and magical, but new challenges and difficulties can present themselves.

How to Buy your Breckenridge Property

Buy a Home in Breckenridge CO

If you are getting a loan to buy your home, there are a couple of options. You can purchase the home as a primary residence, a second home or an investment property. Each methods has its own programs. They will require different amounts down or different percentage rates etc. It is always best to speak to your lender and your accountant as each variable has different tax ramifications.

Choosing a Lender for Your Loan

We always suggest you use a local lender when buying a home in Breckenridge. There are enough lenders in Summit County to choose from and they have competitive rates. Many times buyers will find a lender online that offers them incredibly low rates or they get a lender that says yes to your loan without the knowledge and experience of the local resort town market. Remember, lenders are a commission-based business. For example, there are some condos that many lenders cannot loan on such as a condo/hotel. This is due to the difficulty selling the loan on an open market and often times the loan rate is higher. Using a local lender saves everyone involved potential disappointment and headaches.

Think About How You Will Use Your Mountain House

Buy a House in Breckenridge, CO

If you are buying a house in the mountains with a plan to rent it out short-term or long-term, you need to ask yourself if the numbers are of primary concern or is the emotional component. Is this a family dream cabin in the woods or a ski property for the family? Do you want to realize the highest return on investment? Your answers to these questions will be the deciding factor on where you are going to buy a home or condo.

When To Buy A Home

When you buy a home in the mountains, in a resort community, everything is driven by the seasons. Breckenridge is a ski town so the most inventory to choose from typically is in the summer – July and August. Many sellers have kept their property for the winter to ski one last time or if they are renting their property out they want those peak ski seasons rental income dollars. Many times they are preparing their property for the market on the off season, so summer is when the inventory tends to be the highest.

Consider the Time you Invest in Buying a House in Breckenridge

Buy a Home in Breckenridge CO

Are you going to rent out your property yourself? Do you have time to book reservations, keep up maintenance, etc, or do you need a rental company that is full service and just sends you a check every month with little to no involvement from you?

Secondly, decide when you buy, do you want a condo where the HOA handles so many of the items so you don’t have to, such as snow removal, hot tubs etc? If you buy a home there are options for hiring someone to come in and check on pipes and make sure they don’t freeze, do walk a through every week and keep and eye on things for you. There are many options for you to find one that works for you and your family.

We have been buying and selling homes for our clients in Breckenridge for over 22 years and can help you make the right decision for your family. Give us a call today to get the ball rolling to realize your dream of living in the mountains.