Tag Archives: Denver Real Estate

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”

 

Denver Market Update May 2014

Homes for sale, average sale price for Denver homes and condos, average days on the market, absorption rate and total number of combined sales.

Denver Sales Statistics

May 2014

Metro Denver Prices:

Single Family Average Price: May 2014 – $371,611
(Detached Dwelling) Apr 2014 – $361,098
Ma7 2013 – $334,927
Condo Average Price May 2014 – $230,157
Apr 2014 – $225,305
May. 2013 – $202,543
Combined Average Price May 2014 – $333,478
Apr 2014 – $327,618
Ma7 2013 – $308,537
Percent of Sales Price Change: (from May 2013 to May. 2014)

Single Family +10.67%
Condo +15.88%
Average +8.08%
Total Combined Number of Homes for Sale May 2014 – 5,370
Apr. 2014 – 7,854
May 2013 – 8,214
Percent of Change in Available Inventory:
(May. 2013 vs May 2014)
+10.15%
Number of Combined Homes Sold this Month May 2014 – 5,370
vs. the previous month Apr. 2014 – 4,729
vs. the same month last year: May 2013 – 5,884
Average days on Market – May. 2014 vs May 2013 May 2014 – 31.86
(combined sales) Apr. 2014 – 41.20
May 2013 – 48.40
Absorption Rate: May 2014 – 6.75 weeks
(number of weeks necessary to sell current Apr. 2014 – 7.50 weeks
combined inventory at current rate of sales) May 2013 – 6.28 weeks

Prepared byLarry D. McGee, CRS, CRB The Berkshire Group
From data provided by Metro List, Inc., does not include private or builder sales.

NE Suburban Denver Real Estate Report ~ May 2014

Buying or selling a home? Call Kristal Kraft, Denver Realtor 303-589-2022

Neighborhoods in this Northeast Suburban Area of the Denver Region include, (but are not limited to):

Brighton

Commerce City

Henderson

Northeast Aurora

NE Metro Denver Real Estate Report May 2014

Northeast Suburban Denver continues to offer the lowest average home price of all the Metro areas.  Here one can find a new or newer home in the mid-$200’s.  Still inventory is diminishing with some of the lowest average “weeks of inventory” in the area.

Weeks of Inventory is just a gauge of how long it would take to sell the existing number of homes based on the numbers of homes for sale at the current time.  It does not take into account new homes that come on the market.  As a gauge of the market we can tell how competitive it is for sellers and how long it will take for them to receive and offer on their home.  Right now Sellers have the upper hand.  It is a strong sellers  market.

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.

Contact me for information about Metro Denver Real EstateRequest 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.

A Comparison of Denver Real Estate vs. National Inventory

OK so this week I’ve been raging on and on about the lack of housing inventory in the Metro Denver Real Estate Market.  Sorry, but the fact remains we are selling more homes than we are listing!

Across the Nation there is an inventory shortage, but Denver’s shortage is even more severe.

Interesting comparison!