Lightvision, LLC/Getty Images
If you’re thinking of selling your home in Denver, you’ll want to get started quickly. While the Mile High City has been a strong seller’s market throughout the pandemic, buyers now have more bargaining power as the hot the housing market is cooling. Actually, real estate company Knock predicts that the Denver metro area will favor buyers by the summer of 2023.
While this information may be concerning to sellers, Denver is a highly desirable location for buy a house in colorado, and one of the main markets in the country. There still isn’t enough housing to keep up with demand, as more and more people seek to live so close to the beauty of the Rocky Mountains. Read on for everything you need to know to maximize your profits in a changing market.
Sell your house fast
While it used to be easy to sell a home quickly in Denver, the time frame seems longer these days. In January 2023, Denver homes spent an average of 48 days on the market before selling, according to the Colorado Association of Realtors (CAR) — a massive increase from the 17 days it took in January 2022. from downtown, the wait may seem even longer: the typical number of days on the market for Douglas County homes was 57.
If you don’t have that kind of time, consider these routes to a sale that can feel like racing down a mountain:
- Find an iBuyer: While iBuyers have slowed down their activity in much of the United States, the two biggest names in the industry, Block of offers And open door, are still actively buying homes in Denver. The “i” in iBuying stands for instant: these deals are usually made in 24 hours or less. Just be aware that iBuyer offers will likely be lower (in some cases, much lower) than a traditional offer.
- Sell cash: Companies that buy houses for cash are still taking houses in Denver, like We buy houses, the Buy-Out Company and Blue Halo Homes. When a house is paid for in cash, there is no need to formally take out a mortgage, which saves a lot of time.
- Work with a local agent: An experienced seller’s agent can help you strategize for a quick sale. Local real estate agents know their markets well and will ensure your listing appears in the right places. From picking the right price to attracting the most qualified buyers, a good real estate agent can be your most valuable asset if you’re trying to sell quickly. Moreover, according to National Association of Realtors datathe typical For Sale By Owner (FSBO) listing in the United States sells for around $100,000 less than agent-assisted sales.
- Being flexible: The most important rule for getting a faster sale right now is to be prepared to negotiate. While you may have heard stories of homes in Denver receiving multiple offers and selling well above list price, those days are over. Consider each offer and be prepared to provide seller’s concessions if requested. Data from Redfin shows that more than 58% of Denver sellers were offering concessions to buyers by the end of 2022.
How to sell your home in Denver
There are many nuances to determining the best way to sell a home in Denver – here are some more things to consider.
How much will the sale cost?
It takes money to make money – and selling a house is not free. The costs of selling your home will vary depending on the approach you take. With the estate agents involved, you will hand over approximately 6% of the purchase price to cover commission costs (unless you manage to negotiate lower fees). Even with an iBuyer, you could still pay high service fees.
There are others closing costs for sellers in Colorado too. For example, sellers typically pay the tab for title insurance here. On a $500,000 home, you’re probably looking at around $1,575 for a policy. Also, while the state doesn’t require you to hire an attorney to oversee the transaction, doing so anyway is a smart move. Real estate is a complex business, so paying for a real estate lawyer guarantees that you are protected in the transaction.
How is the local market?
The Denver metro area is large, so it’s important to think about what the market is like in your specific area of town. For example, the median sale price in Denver County is $590,000, according to CAR, while the median price in Douglas County is $680,000. It is important to work with a real estate agent who will guide you through a comparative market analysis for your immediate area. Translation: If you live in Arvada, you don’t need to focus on the price of homes sold in Lone Tree.
Are you trying to buy another house at the same time?
If you’re selling the roof over your head, you’ll need to figure out where you’re headed next. Buying a house while selling a house at the same time can be complex. You’ll need to pay close attention to your schedule and consider whether you want to add any additional provisions to the contract, such as a tenancy agreement that gives you a bit more time to move out. Your agent can help you work out the details.
Preparing your home for sale
When you’re ready to move forward, follow these three steps to a smooth sale.
- Find a real estate agent: All agents are not created equal. To find the right one for you, interview a few different candidates to get an idea of their marketing strategy, their thoughts on the market value of your home, and their plans to pivot if the sale takes longer than you’d like.
- Determine what to fix: If you were the buyer, would you be discouraged by problems in your home? For example, is the paint peeling in the living room or is the shower constantly dripping? Work with your agent to get their expert opinion on what is worth fixing. It may also be worth exploring simple ways to increase the value of your propertyand be sure to ask your agent if staging would also help.
- Competitive Price: Estimate how much is your house worth can be tricky, but your real estate agent will help you find the right number. Keep in mind that while overbids were common during the pandemic, Denver homes are now selling for about 2% less than their asking price, according to CAR.
Should I sell my house quickly?
If you’re in a rush to move, selling your home quickly can save you from having to pay two mortgages. And if you’re in the midst of a major life change, like a divorce, selling quickly can help reduce family friction.
However, if you are hoping for maximum profit, patience may be key. Maybe you can work for synchronize your ad with late spring or summer – usually a time when more buyers are looking and homes spend far fewer days on the market. For reference, Denver homes only spent nine days on the market in June 2022.
Next steps
Once you’ve accepted an offer, your job isn’t done yet. Before you can access the closing table, you will need to fill out some paperwork. There is the Colorado Seller Ownership Disclosure Form to be completed, informing the buyer of any defect of which he should be aware. If your home is part of a owners association, be sure to also request copies of previous board meeting minutes and governance bylaws, as a buyer will also want to see this information. You will also have to put the house back in good condition for the buyer’s final visit. Once everything is settled, you’ll be ready to hand over the keys to your home in Denver.
FAQs
-
Probably the fastest way to sell your home in Denver is through an iBuyer. Opendoor and Offerpad are still buying homes in the Denver metro area, and the companies are operating on a model that will give you an almost instant offer with the ability to close quickly — possibly within days.
-
Although home prices aren’t going as high as they used to, it’s still a good time to sell a home in Denver. There simply isn’t enough housing supply to meet buyer demand: According to figures from the Colorado Association of Realtors, there was only about a month’s supply of housing in the city in January. Such conditions greatly favor sellers.
-
Working with an experienced local real estate agent is the best path to your bottom line. It’s an agent’s job to know the best strategies to sell your home for the best price. Although you have to pay a commission fee, the cost is usually worth it: nationwide, agent-assisted sales bring in an average of $105,000 more than For sale by owner house lists.