Tag Archives: colorado

Free Resource Guide for Selling Your Home

Selling Your Denver Home

Questions to consider when selling your home

This year in the Metro Denver market we have had a strong appreciation, where home prices are returning to their former levels.  Many homeowners who were “underwater” with their mortgages are now finding they have equity.  This is good news because it opens up the opportunity for homeowners to sell.

Is now a good time to sell?

In a word, yes!  Due to the high demand for homes to purchase, sellers are enjoying a “seller’s market”.  A seller’s market is defined by the “days on market”.  When the days on market is 25 weeks or less (6.25 months), it is a seller’s market.  We go even further to define the seller’s market as “Extreme Seller’s Market” when the available inventory is from 0-12 weeks.

How do we calculate the number of weeks inventory?

This is a simple math calculation.  The number of homes for sale (during the month) is divided by the number of homes sold (during the month)=weeks of inventory.

This is not a perfect calculation as these numbers fluctuates as home come on the market. But still, it gives us good guidance as to know if values are increasing or decreasing.  This is important for a home owner to know when they are preparing to sell.

How do I determine the price?

As a Realtor, I can evaluate these numbers when preparing a pricing strategy for the home.  Looking at comparable sold properties that happened in the past is one portion of pricing equation.  One needs to evaluate the future home price based on demand.  The value could be significantly more if there is a great demand for the home.

At the same time one needs to be very cautious about getting to aggressive and over-pricing the home.  Over-pricing can be detrimental in the long run, causing the home to become “shop-worn” from being on the market too long.  Buyers are weary of homes that don’t sell quickly. They are concerned that there is “something” wrong with the property they might not be able to see.

How long will it take to sell my home?

Good question and one that I can only answer based on past history.  I look at the “days on market” other homes in that price range and neighborhood have sold for and usually can give you a good estimate.

Right now in Metro Denver the days on market varies by price range.  Of course it only makes sense that more houses sell in the “average” and below price range than above.  If your home is in the average or below price range it stands to reason the timing for sale will be very similar.

There are extenuating factors that could change the days on market

  • Condition
  • Location
  • Accepting a contract with buyers who aren’t qualified, committed, reasonable

Condition of your home has a bearing on who will buy it.  If your home is in need of updating or major repairs, not everyone in the market is up to do that.  The home will need to be priced right so buyers who want to do repairs can afford to purchase AND do the repairs.  There are many companies that will offer to “buy your ugly house” but beware they are in the business to make a profit and the offer they give you will be a “wholesale price”.  I can guarantee I can find a buyer for more than they will pay you, including what you need after you pay me!  

Location is really a tough one. You’ve probably hear the real estate mantra, location, location, location.  Well if you are in a good location, you did well.  If you purchased in a poor location or the location has gotten poor since you bought, you will just need to deal with it.  That means compensating for it in price or providing irresistible terms to a buyer.  There are many strategies to get you out of a bad location, it all depends on the situation.

Don’t despair just remember “one man’s house is another man’s castle.”

Contract fallout is a huge issue right now with our fast paced Metro Denver real estate market.  Buyers are literally purchasing homes and then getting buyer’s remorse and walking away from the contract.  I think it’s because the competition demands that they act before they have fully digested the big decision they are making.  People really need to have choices. When that is taken away from them they become uncertain.

How do we prevent this?  Working with the seller, I dig as deep as I can into the buyer’s qualifications.  Just because they wrote an offer doesn’t necessarily mean they can and will perform.  By researching their qualifications and asking more questions I hopefully can ferret out the unserious buyers.  It means a lot to my sellers when they have the piece of mind the transaction will go as planned.

Free Guide: Things to Consider When Selling Your House.

Keeping Current Matters offers a wonderful resource guide for Home Owners with questions about selling their homes.  You can click on the link below that will take you to my Evernote account where you can download/view the book at your leisure.  If you have questions about the local market, please feel free to send me an email or call.  I welcome your contact!

Image-SellerGuideSummer2014

Download your free guide here

Click here for English Version “Things to Consider When Selling Your House

Click here for Spanish Version “Que Cosas Tener En Cuenta Al Vender Su Casa”

 

SE Metro Denver Real Estate Report ~ May 2014

Looking to buy or sell a  home call Kristal at 303-589-2022

SE Metro Denver Region Real Estate Report by Zip Code

Neighborhoods in the area include (but are not limited to):

Englewood

Littleton

Greenwood Village or Denver Tech Center (DTC)

Cherry Hills Village

Southeast Aurora

Parker

Highlands Ranch

Sedalia

Castle Rock

SESuburbanDenverRealEstate-May2014

SE Metro Denver stats are green with the exception of one area, Sedalia!  This area is considered a little remote from the metro area and homes just aren’t selling as fast!  With an average price at $426,900 this area has mostly custom homes.  Buyers in this price range have many options and those include building to their custom needs.  High end buyers might find the best deals in the Metro area in Sedalia, so be sure to take a look!

Average days on market for the SE Metro area is just at 33 days.  This means most homes are selling within a day or two taking the rest of the month for the buyer’s loans to be approved!  Sweet news for home sellers who can enjoy knowing their home is sold without having to be showing it for weeks on end.

Questions about your neighborhood? Need more specific data on your home for either purchase or to sell? Feel free to call for more in depth reporting. Kristal Kraft 303-589-2022 I welcome your call.

Request an Up-to-Date Market Report for your Metro Denver Neighborhood.

Based on information from Metrolist, Inc. for the period of May 2014. NOTE: this representation is based in whole or in part on content supplied by Metrolist, Inc. Metrolist does not guarantee nor is in any way responsible for its accuracy. Data maintained by Metrolist may not reflect all real estate activity in the market content.

The Economic Impact of Selling a House

EconomicImpact-DenverRealEstate-KristalKraft

When a home gets sold the impact goes far beyond the buyer and the seller.  The local economy is stimulated by the sale.  A few of those who are impacted are:

  • Home Builders and/or General Contractors
  • Real Estate Brokerages
  • Mortgage Lending
  • Title Insurance
  • Rental and leasing
  • Home appraisers
  • Moving companies/rental truck agencies
  • Home inspectors
  • Home stagers

Home ownership provides stability for the country.  Locally the economy is impacted at macro level, where local business people can continue to operate their businesses, pay for their kid’s soccer/swim/dance lessons, buy groceries, pay their mortgage, take vacations and contribute to their own neighborhoods.

Homeowners create financial security by paying their mortgage and over time developing equity in a home rather than renting and creating equity for a landlord.

How does Colorado rank ?

In Colorado the impact of a home sale is $67,000, well above the country’s average of $52,205.  Why?  I like to think it’s because people love living in Colorado as much as I do.

I know, it’s hard to be humble when you live at the foot of the Rocky Mountains.

Dreaming of Moving to Colorado?

Sand Hill Cranes Migrating to Colorado

Sand Hill Cranes Migrating to Colorado

Yesterday I received a call later in the evening than most people work. It was from a gentleman in Texas who had an opportunity to move to Denver, Colorado. He was excited but overwhelmed at the cost of our housing. He needed to talk.

I always enjoy these chats with people who want to fulfill their Colorado Dream. It wasn’t so very long ago I had the same dream. I remember how I looked forward to living in a beautiful environment where the air is clean and the ever present view lifted my spirits!

Relocation Hurdles

Moving from one part of the country to another comes with much anxiety about where to start. There are questions about the cost of living, distances and amount of time it takes to commute. Families with children always want to know about the school system. Mostly people want to know how much home they can buy with their money.

Denver’s housing market is not the most expensive in the country but it is much higher than many areas, especially Texas! The gentleman I was talking to was overwhelmed by the cost of our homes.

Granted our median sales price in metro Denver is $250,000, our property taxes are the fifth to the last least expensive in the county. Comparing the final house payment in Denver to one in Houston where the taxes are higher would compensate. Houston has the 5th highest rate of property taxes while Denver is ranked at 45th in the nation.

Comparing Square Footage

Another thing we discusses was the difference in the size of homes. Unlike Texas, Colorado homes typically have basements. This extra square footage in not always represented in the listings found on the Internet. Thus when comparing homes you are getting the size as measured “above ground” leaving out a significant portion of the home that is “below ground.”

While these differences may not totally compensate for the price differential, they certainly help. Living in Colorado is more expensive, but if you ask people who live here, it’s worth it!

Your Denver Relocation Resource

Have questions about a possible relocation to Denver?  Give me a call, I can help answer some of your pressing questions and help you make that move a smooth one!

 

Source of information on State Tax Rankings: http://taxfoundation.org/article/facts-figures-2013-how-does-your-state-compare

Tricks of the Trade – Offering a Quick Closing to the Seller

Getting Your Offer Accepted – Offering a Quick Closing & Deliver It! (Part 3 of the Series)

Denver Real Estate is experiencing a very unusual market right now. To illustrate what is happening we have

  • Minus 10.9% less inventory than last year
  • Last month we sold 17.7% more homes than last year

We are selling homes at a faster pace than we are putting them on the market. This fact is causing some buyers great distress, because each home they find, someone else is finding it too. It is not unusual to put a home on the market one day and have it under-contract the next! Buyers are competing with each other and yes, there is blood in the streets!

What is a buyer to do?

Be ready at the starting line for a fast finish!

Be ready at the starting line for a fast finish!

To be the Winning One, you and your offer must stand out in the crowd of other offers. Your offer must be strong in benefits to the seller, that includes any number of features.
One strong selling feature is to offer a short time to closing. The time from contract to closing is a very stressful one for the seller. Yes, it’s tough for the buyer too, but in this instance we need to focus on the “other guy” and try to determine what feature in your purchase offer is going to really make his day.
Knowing you have a sure thing in hand is often better than the uncertainly of not knowing. It’s really hard for a seller to make plans for the next move when they run the risk of a buyer who isn’t 100% ready, willing and able to move forward.
Offering an early close means you and your lender have to be able to prove you can do it. This is where you really must be in sync with a good lender you can trust. I’ve talked about the value of using a good lender in previous blog posts.
A lender is an intricate role in the process. The contract you and the seller will sign has specific dates that must be met. If these dates aren’t met by your lender he actually risks losing YOUR earnest money! Sadly, many lenders don’t pay any attention to these dates. They just put your loan in process and hope for the best.
Obviously that type of lender is not someone you want to deal with!
If you want to get a quick closing on your transaction, you need to start before you find the home. Yes, before!

You have another challenge:

The average transaction from start to finish is 5-6 weeks from going under-contract. According to Ellie Mae a loan processing software firm that keeps statistics, the time it takes to process a loan has been increasing. This is a factor of the changing market coupled with the extra burden of financing regulations.
This process can be shortened up considerably with prior planning. Getting your documentation to the lender for a formal PreApproval is critical.
Once you find the home the next steps are inspection and appraisal. Typically in the past we would do the inspection before ordering the appraisal. Now, buyers are finding the fastest way to get to closing is to do these simultaneously.

Warning: Yes, this is risky, if the home has inspection issues that cannot be resolved it is possible you may have to pay for both an inspection and an appraisal on a house you end up not buying. Still ordering both the appraisal and the inspection immediately will help shorten the contract to closing time.

The key to making this work is having a good team that is working together to get the job done!

Being the One Winner in the home search contest requires attention to many details.  I created this series of posts to help illustrate how to become that One Winner!  If you are ready to begin your home search right now or in the near future, please give me a call.  I look forward to being of service to you.

Begin your home search here.

Call direct 720-279-4599