Yahoo Finance 4 Real Estate Trends to Know Before You Sell Your Denver Home
It's no secret that Denver home prices are on the rise and housing inventory is scarce. Although both of these factors seemingly create an ideal situation for sellers, the market isn't foolproof. Many homebuyers in Denver are cash-strapped and weary from searching, which can create problems for sellers who aren't aware of current market trends. Meanwhile, a slew of issues can crop up to make the selling process difficult, from unexpected inspection concerns to contract chaos.
To help you become better informed about current area housing trends, we turned to some of Denver's top real estate agents according to OpenHouse Realty, an agent referral company and a U.S. News partner. Here are some ways they say you can prevent common home-selling headaches.
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Buyers want the outdoor lifestyle. One of the main reasons people love living in Denver is because they can enjoy an outdoors lifestyle. If a home has outside areas like a yard, deck or even a small balcony, it's wise to spend some time and money sprucing them up with a fresh coat of paint or staging them with decorative items like plants and pillows.
"People who live here spend a great deal of time outdoors and, especially this time of year, it's enticing to buyers to have good outdoor space," says Conrad Steller with Keller Williams. "We encourage [sellers] to do a full spring cleanup to get the yard in good condition and make it fresh, because even if you don't have a lot of outdoor amenities, you have a nice blank slate to offer."
If a home doesn't have a private outdoor space, try to bring the outdoors in by buying a few house plants, staging a sunny nook or updating window treatments to amplify natural light.
You're selling more than a house. People are not just looking to buy four walls and a roof; they are looking for friendly neighbors, a safe jogging route, a quick commute to work and an overall place they can call home for a while.
One thing that is unique to Denver is we have several urban pockets that are awesome," notes Susie Best with PorchLight Real Estate Group. "People in Denver love their niche neighborhoods."
"We are selling the area and the activities, the neighborhood, the lifestyle," Steller says." We interview our sellers and find out what they really love about their area. We want to know how they experience life in and around their house, not just how much they spent on their kitchen remodel."
Especially if a home is lacking in modern amenities or outdoor space, it's imperative to use neighborhood features as selling points. Part of this appeal is walkability, an aspect that is at the top of many buyers' wish lists.
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Buyers want a finished product. Although it is common in Denver's competitive real estate market for buyers to submit offers waiving inspections and closing fees, most of them won't overlook a dated home that needs repairs or renovations.
Best speculates that there are several reasons why buyers are more likely to make an offer on a turnkey property. "One is that everyone works so hard they don't want to spend free time working on a house. They would rather spend their time mountain biking or skiing or hiking. Another reason is that buyers are maximizing available cash for a down payment and for purchase and they don't want to have to put extra money into a house after moving in."
Steller notes that move-in-ready homes are also easier for buyers to finance. "With lending being as cheap as it is, it's easier to finance a market-ready home than it is to pay for renovations after moving in," he says.
Moreover, turnkey properties are less likely to draw bids from investors. "The problem with the fixer uppers is that investors are competing heavily for them, and they have a lot of cash," Steller explains. "Fixer uppers are selling at a premium so you can't really get a good deal in our market."
Bidding wars should last a few days. According to Tony English with HQ Homes, sellers who want to get into a bidding war should list their home on Thursday or Friday. "We don't start showings until Saturday," he says. "We wait a day and show them all at the same time so there are three or four couples looking at the same time, which creates a really big buzz."
While this method is great for sellers who want to be able to review several offers and pick the best one, it's possible that some of the offers will fall through because the buyer didn't think it through well enough. Buyers often hastily submit an offer without serious consideration. This is due to the fact that they have learned to act fast after losing bidding wars on other properties time and time again.
"If you're a seller you have to understand buyers and their psyche which is in a state of panic," Best says. "It's like they're just throwing spaghetti at the walls to see what's going to stick."
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If a property falls out of contract it can not only cause emotional strain for the seller, but it can have a negative effect on how other buyers view the listing. "The fast sale isn't always our goal. A lot of those first offers are the ones that fall through because people are so desperate," Steller explains. "If it goes back on the market, then people think something is wrong with your house."
To avoid this, Steller advises that it's best to wait a few days before accepting an offer. "We often see the best offer come in three or four days after coming to market, and we encourage people to wait a few days even if it's painful."
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