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Selling Your Home? Consider These 3 Pricing Factors

Thinking about listing your home for sale? Today’s buyers will appreciate more inventory and your home is likely to sell shortly after hitting the market. While it’s easier to get top-dollar for your home in today’s market, setting an appropriate listing price still matters. Below are some tips on how to price your home to sell in any type of market!

The housing market is always changing and it’s important to focus on three things when determining the price to list your home. Please take a SEC (yes, an acronym: Statistics, Environment, and Condition) and consider a few things!

1. Statistics

99.9% of all real estate professionals will check past sales when determining a listing price for a home.

In a fast-paced market, past sales alone won’t cut it, as the data that is available today is most likely from negotiations and deals that were put together over 30 days ago. In addition, your broker will need to look into comparable properties that have recently gone pending and dig a little for info. Fellow listing brokers will usually provide the details on what they went under contract for, how many offers they received, etc. This helps to further refine a listing price.

Lastly, you need to keep an eye on your competition and their pricing. When potential buyers are touring homes they are searching in their desired neighborhood, price range, and home specs (bedrooms, bathrooms, square footage, etc.). If your home is priced too high, it may take longer to sell.

2. Environment

Have you ever seen a listing online and said “WOW, I need to go see this home — I think it’s the one!” Then, you arrive and find out there is a 12-story building blocking the view that they conveniently “shot” around during the marketing process. Environmental factors need to be factored into your list price. Buyers are usually making the most expensive purchase of their life and they are going to notice and analyze everything. Just because you don’t mind the 12-story building, buyers may see it as a negative if your competition doesn’t have the same issue. Some other examples of environmental issues are:

  • Busy streets
  • Interstate noise
  • Distressed neighboring property
  • Loud neighboring commercial property
  • No street parking

Most homes have something environmental that could affect the final sales price.

3. Condition

The condition of your home will have a huge impact on list price. If you are considering making updates or repairs before you list, consult with your real estate broker for sound advice. By taking needed repairs and updates into consideration, you will have already addressed items buyers will most likely push back on. Pricing your home accurately based on its current condition will be apparent when buyers search online. There are a ton of buyers out there that are looking for homes that aren’t updated and are willing to pay a fair market price for them.

In Conclusion

You only have one opportunity to make a good first “pricing” impression on the market! There are a million articles on overpricing and how it’s a bad strategy. Taking a SEC to come up with a solid list price will ultimately net you more at the closing table!

Only One Month of Housing Inventory in Denver!

The story remains the same: no inventory!

When I say “no inventory,” I mean that we are consuming homes as fast as the market is producing them (1,429 new listings vs. 1,416 sold units in August). We typically see a reduction in active listings around mid to late fall but not during the summer months. Active listings for August were nearly as low as what we saw this past May. Buyers who were searching back in May suffered through several offer rejections before they were able to get under contract.

It’s not all doom and gloom though! 30-year mortgage rates continue to decrease, homes are taking a few extra days to sell, and the median price dipped slightly from June’s highs.

Pro-tip to buyers: keep your guard up, and treat every new listing like one that will be gone on Monday. Rely on your broker’s offer recommendations and don’t forget the competitive market clauses as a free insurance policy in the event that the home you are submitting an offer on is “the one.”

Want more detailed information about the market in your neighborhood? Please reach out!

U.S. Real Estate News Recap: August 2021

Here’s a quick digest of what happened in U.S. real estate last month:

+ CoreLogic forecasts that homes will appreciate a more modest 3.2% over the next year compared to the mind-boggling 17.2% gains they saw over this past year.

+ COVID may have killed open houses, but it hasn’t stopped home sales. Live video and virtual 3D tours are helping the 10% of buyers that purchased homes this year without physically seeing them first.

+ Home prices have risen for the third straight month nationally, which are up 18.6% from a year ago. Denver is one of the six cities leading the hot housing market, seeing record price appreciation over the last year.

 


 

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Real Estate Finance News Recap: August 2021

Here’s a quick digest of what happened in real estate finance last month:

+ Mortgage rates have stabilized around 2.87% (as of 9/2/21), as economic growth and inflation have moderated in the last month.

+ 1.71 million borrowers currently remain in forbearance. Of those, 400,000 homeowners will enter their final month of forbearance in September, unless the maximum term is extended.

+ With rates remaining low, some homeowners may want to finally get around to refinancing their home. No-cost closings can help some homeowners refinance without out-of-pocket costs.

 


 

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Denver Real Estate News Recap: August 2021

Here’s a quick digest of what happened in Denver real estate last month:

+ Downtown Denver has been starving for new condos over the last decade. Its hunger pains will begin to subside when the the largest condo project since 2009 breaks ground soon at 18th & Glenarm.

+ Median home prices fell for a second month in August. Buyers, don’t be relieved yet — inventory is tightening again, as active listings fell 11.7% between July and August.

+ Relief for Denver renters has dissipated in the Denver metro area. Front Range rents increased 14.4% year-over-year in August and are up 12.8% since March 2020.

+ A San Francisco-based developer has purchased an entire block of RiNo for $27.5M. Plans are still in the early stages, but may include a 500-unit apartment project, stretching 12-stories.

 


 

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Should I Make Any Home Improvements Before I Sell?

One common question home sellers ask is, “what should I do to get my home ready to sell?” This is a loaded question because the answer depends on their timeline, their budget, and the current market (sellers, neutral, or buyers). The answer for you will also depend on these factors.

No matter how much money you have allocated to get your home ready to sell, it’s your timeline sets the stage for what you are able to accomplish. If you need to sell quickly, forget the major upgrades and try to accomplish as many deferred maintenance items as possible, while considering what refresh items will provide the most benefit. Your real estate broker and their team will be able to help you create a punch list and prioritize the items based on your situation.

There are three areas to focus on when it comes to pre-listing home prep:

 

1. Major upgrades

What they include:

Major upgrades include large projects such as a kitchen remodel, renovating a  master bedroom/bathroom, or adding a backyard patio.

Who should do them:

Typically, these work best for those with a hefty budget and lots of time on their side before looking to list.

Best time to do:

A great time to do any major upgrade is right after you buy the home, especially if you know you might sell it within the next 5-10 years. Who better to enjoy the upgrades than you! If you are going to end up footing 1/2 the bill you might as well get some enjoyment from it!

The ROI:

These types of projects will give you about a 50% return on investment. While it will make your home more appealing and raise the list price, you may end up a little disappointed at closing.

2. Deferred Maintenance

What it includes:

Think smaller when it comes to deferred maintenance. Instead of the “oohs and ahs” that major upgrades provide, these are the little items that show buyers you’ve tenderly cared for your home — leaving buyers questioning less about the condition of your home. (more…)

Is the housing market slowing down in Denver?

The current catchphrase in Denver’s real estate market is “market shift.” While my day-to-day observations agree with that, the statistics aren’t necessarily reflecting a shift!

Denver’s median sale price dropped $10k to $650,000 since June, which could indicate the start of a slowdown or it could be an early seasonal cool-off driven by a super-hot spring and early summer sell-off. Inventory remained unchanged from June, but days spent on the market dipped to 13 — the lowest it’s been since we began tracking it in 2007! One thing to point out is the majority of July’s closings are from contracts that were signed in June, and June was still a super-hot month. August’s numbers should be interesting and we’ll definitely be chomping at the bit to analyze the data as soon as we can!

Want more detailed information about the market in your neighborhood? Please reach out!

Real Estate Finance News Recap: July 2021

Here’s a quick digest of what happened in real estate finance last month:

+ 30-year fixed mortgage rates remain below three percent for the fifth consecutive week and 15-year rates hit a new low as the economy works to get back to its pre-pandemic self.

+ As the Fed discusses cutting back on buying mortgage and Treasury bonds, could housing prices finally cool down?

+ Brett Arends of MarketWatch gives us another reason to own our home in retirement — rents are rising three times as fast as inflation. Ouch!


Have questions about what’s happening in real estate in your neighborhood? Let’s chat!

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Denver Real Estate News Recap: July 2021

Here’s a quick digest of what happened in Denver real estate last month:

+ Things may be looking better for home buyers as Metro Denver saw its second biggest jump in its supply of homes for sale — triple the 3.1% jump seen nationwide.

+ … but perhaps not when considering that Metro Denver home prices set multiple home price appreciation records (15.5% in April and 16.2% year-over-year in May) and July rents rose 11.6% statewide. At least we’re not seeing increases like in Phoenix (25.9%), San Diego (24.7%), and Seattle (23.4%).

+ The Biden administration is developing a new eviction moratorium after a previous ban expired last weekend. While 12% of Denver renters owe back rent, landlords do not believe an eviction crisis is looming.


Have questions about what’s happening in real estate in your neighborhood? Let’s chat!

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U.S. Real Estate News Recap: July 2021

Here’s a quick digest of what happened in U.S. real estate last month:

+ Home sellers are still making big profits as home prices keep setting records, but their margins took a hit in the second quarter. Is this a cause for concern? While purchase prices have skyrocketed and length of homeownership has decreased, we haven’t seen a dip in profit margins during the second quarter since 2008.

+ Finding a home to buy can be quite a challenge today — especially when you have one to sell and don’t want to end up without a place to live. NerdWallet offers some strategies to help you avoid this situation. Too much to take in? reach out to us and we’ll walk you through it!

+ The U.S. Supreme Court ruled racially restrictive housing covenants unenforceable, but many property owners are shocked to find these restrictions still remain on paper. State lawmakers are working on legislation to help homeowners remove “whites only” covenants from their property records.


Have questions about what’s happening in real estate in your neighborhood? Let’s chat!

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