Wednesday, February 20, 2013

3 Mistakes Sellers Make in a Hot Market

With the market and temperatures heating up moving into the spring months, chances are there will be even more activity and tight competition in the real estate market.  Even in a highly competitive sellers market there are some major issues that can keep your home from selling.  Read on to understand how you can avoid these pitfalls:

1)  Over-Pricing and Being Reactive

Let's face it, when there is more demand, prices will go up.  The only problem is these prices don't just go up over night.  It takes months and usually years to see major price increases in a given area (if the market isn't artificially inflated of course).  So assuming just because your neighbor sold his house for full asking price means that you can add a few percent on yours, won't pan out.  Be realistic and review the comparables when setting list price.  Also, if you get feedback from showings saying the home is great, but over priced, take that as a sign to adjust accordingly.  Lack of showings might not mean it's overpriced, but a price reduction resets the listing in all agent and buyer saved searches, and gets more people interested in seeing your home.

2)  Being Arrogant and Stubborn
Of course your home is the best on the block, and of course you've kept it beautiful, clean and pristine.  Most sellers have an emotional attachment to their home, whether it's a sentimental attachment or perhaps an attachment based on all the work you've done over the years.  My advice is to break that attachment and view it as just another house - have a Realtor's outside opinion on condition and value.  You can't be over confident in this market because you'll only be setting your expectations higher than where they should be.  Here are some common over-confident and arrogant assumptions to avoid:

  • Assuming that any buyer is lucky to have your house.
  • Assuming you can charge a premium because your home is so much better than the entire neighborhood.
  • Assuming multiple offers are coming your way.
3)  Accepting The Wrong Offer
There are two separate problems you will face when accepting offers, what to accept, and when to accept.

Accepting Any Offer:  A buyer comes to see your house and automatically offers 3% above asking price.  You've got other offers but they don't compare to this one.  You accept it.  Three weeks later when your home appraises around your original list price (not the 3% inflated offer), the buyer refuses to go forward unless you drop the purchase price to match the appraised value.  Some buyers and scheming Realtors will do this in order to get an offer accepted over others, knowing it won't appraise.  This is where carefully knowing your comparables comes in.

Accepting the First Offer:  If you're very well priced, you should receive a large amount of showings within the first week.  If you have a slate full of showings and great feedback, only then can you expect to have multiple offers.  If that is the case, don't just accept the first offer.  Have your Realtor follow up with all buyers that have shown interest and understand how many other offers may be coming in.  At that point, you'll have the opportunity to get buyers to compete with their highest and best offer.  Having multiple offers allows you to pick the best terms, conditions and most qualified buyers, not just the best price.  

It's always good to understand where you can go wrong even when the market is tilted in your favor.  Avoiding these mistakes will help you keep your cool during this hot market.

Jared Reimer is a real estate expert at Prudential Rocky Mountain Realtors in Northern Colorado.  Real estate is his passion and he always wants to connect with like-minded and savvy real estate fans.  For more information or to get in touch with Jared, please visit his website at or email him at

Tuesday, February 12, 2013

3 Ways to Win in Today's Competitive Real Estate Market

Have you noticed how competitive the real estate market is getting?  If you're not in the market, you're missing out on all the fun!  If real estate was a game, the commentators would say "It's getting chippy out there".  And it certainly is getting chippy.  

In today's market, when buying a home, you're opponent is not the seller, it's all the other buyer's jockeying for the very few homes available.  If you want your offer accepted here are three ways to make it stand out.

1)  Work with the Best
It goes without saying that if you're working with high quality professionals, you're more likely to get the outcome you want and deserve.  Professionals know how to get the job done while preserving your best interests.  A hardworking and well respected Realtor will know how to craft, present and negotiate your offer and make it stand out.  A proactive lender will not only have you pre-qualified, but will also advise you on which loan programs will make your offer more acceptable than others.  A great team of professionals will make you and your offer look great.

2)  Convince them til Closing
Knowing what can go wrong from offer to closing can help you craft your offer in a way that is more appealing than your competition.  Low appraisals, inspection issues and loan approval are the three biggest hold-ups that can kill a deal.  To beat the possibility of a low appraisal, submit your offer based on neighborhood comparables and add them to your offer.  You won't have control over the final appraisal figure, but knowing that you aren't drastically overpaying will assure both parties that the appraisal won't be an issue.  To cover the inspection issues, decrease your contingency periods.  I still suggest doing normal due diligence and inspection, however, tighten those periods so if you do have to back out, your seller will only have the home off the market for a short period of time.  To combat a loan approval issue, make sure you are fully qualified with your lender and have your pre-approval letter ready to go.  The more down payment you're able to bring to the table will make you look financially stable and in a better position compared to other buyers.  Being proactive is the best way to make your offer stand out.

3)  Put Your Money Where Your Mouth Is
If you truly want the home, put your money where your mouth is, and pay full price or even above asking price.  If you can justify it (using comparables - see #2) then pay what you can.  There are plenty of buyers out there who find a perfect home, then put in a low-ball offer just to see it get rejected.  This isn't a low-ball market anymore and buyers need to understand that.  The more skin you can put in the game, the better the chances are of getting an offer accepted.

It's a tough market out there for buyers.  If you want a winner on your team who can get the job done and beat other offers, call me today so I can get to work taking down your competition.

What is the market like in your part of town?  If you're a buyer, have you seen the increased competition for homes, even missing out on a few?  Sellers - have you seen multiple offers on your home?  Let me hear from you!

Jared Reimer is a real estate expert at Prudential Rocky Mountain Realtors in Northern Colorado.  Real estate is his passion and he always wants to connect with like-minded and savvy real estate fans.  For more information or to get in touch with Jared, please visit his website at or email him at

Tuesday, February 5, 2013

5 of the Most Interesting NoCo Homes

Every couple of months, I love to scour the MLS system to try and find some seriously unique and interesting properties.  Whether they're quirky, expensive, small, or have some distinctive characteristics, they all appeal to the dreamer - those people who long for great mountain home, or that home on the lake.  Those people who what to leave suburbia and fix up an old farmhouse, or those folks who just want luxury, luxury, luxury.  Bringing fun and unique listings to you is one of the best parts of my job.  I hope you find these homes as interesting as I do.

Most Expensive Home
2480 Saddle Notch Road, Loveland, Colorado
Price Tag: $10,000,000
By far the most expensive home, and most luxury mountain property in the region, this 5 bedroom, 7 bath home has anything you could ever need.  Massive theater room, 2 ponds, and horse stables on 375 acres of pristine mountain property.  It's easy to see why this home commands such a hefty price tag.
Click HERE for Pics and Info

Oldest Home
2525 W. County Road 4, Berthoud, Colorado
Price Tag: $1,189,000
Sitting on 68 acres, this Rocky Mountain River Ranch property was built in 1890, and has had many upgrades and renovations since.  With a gourmet kitchen, gorgeous master bath and charming feel, this home is truly special.  Rumor has it that Dwight and Mamie Eisenhower vacationed here often!
Click HERE for Pics and Info

Home that "Has It All"
2225 Rock Castle Lane, Fort Collins, Colorado
Price Tag: $2,999,900
If you really want it all, this is the home for you.  47 acres that backs up to Fossil Creek Reservoir with a pool, a pool house (with steam showers), tennis courts, gourmet kitchen, exquisite bathrooms, horse pastures, a barn, and much, much more.  Even better, this home is a stones throw away from shopping, I25, and all that Fort Collins has to offer.  This home truly has it all.
Click HERE for Pics and Info

Most Unique Home
829 Peterson Street, Fort Collins, Colorado
Price Tag: $625,000
Historic homes are always the most quirky and interesting.  Now, you won't find any secret passages or hinged bookshelves in this Old Town charmer, but you will find a funky mix of classic touches and historic wood work along with contemporary updates.  The narrow curved staircase, butlers pantry, Juliette balcony, and basement kitchenette set this home apart from the norm.
Click HERE for Pics and Info

Smallest Home
9073 W. Poudre Canyon Hwy, Bellvue, Colorado
Price Tag: $63,900
If charm and "coziness" is what you're after, then pay attention this sweet, little cabin.  This well laid out, well designed home utilizes every bit of its 462 square feet - boasting a living room, dining room, kitchen and bedroom!  Plenty of storage beneath the cabin, right on the river with plenty of parking.
Click HERE for Pics and Info
Jared Reimer is a real estate expert at Prudential Rocky Mountain Realtors in Northern Colorado.  Real estate is his passion and he always wants to connect with like-minded and savvy real estate fans.  For more information or to get in touch with Jared, please visit his website at or email him at