If you are a resident of Denver, then there is one thing about your city that you definitely know: its popularity is not going anywhere soon.
Over the past year, around 13,00 newcomers have been welcomed to the Denver area, which is included in the over 93,000 individuals who since 2010 have increased the population. This is a significant increase in neighbors, and many changes have come along with it.
People are moving to the Denver area due to its proximity to the outdoors, relative affordability, and increased job opportunities, and they have, in turn, inspired increased day-to-night entertainment and mass transit. Those are, of course, positive changes, but they also lead to increased costs of living, housing shortages, and additional traffic. If you are a homeowner planning to sell your house, then you need to consider all of these things.
It might be a seller’s market right now, but there is still a lot of finesse involved. You don’t want to mistake high popularity for easy profits.
However, you also do not want to get too overwhelmed. So what do homeowners need to know once they are ready to put their houses up for sale.
For one, the demand is very high.
To begin with, it is important to know who you are dealing with. A large segment of the market are transplants, but first-time buyers and empty-nesters are also looking. Everyone who is looking to buy a house has different needs. The next thing you need to do is develop a strategy that will cater to a specific buyer, their specific budget, and also what time of year it is. Also, bring in backup. Because the real estate market in Denver is so hot right now, agents and buyers need to be prepared.
So how can you avoid potential pitfalls and ensure your house stands out from the competition? Use this guide and all of the tricks and tips that we have compiled that you will need in the current booming real estate market to quickly sell your house in Denver.
A recent market report from the Denver Metro Association of Realtors, which focused on the previous month’s statistics, showed that compared to last year, year-to-date closings had increased three percent. However, to accommodate affordability, the market is shifting slightly – a single-family home’s average list price is right about $500,000 (click here for a free valuation of your home). Therefore, it becomes more difficult to pin down buyers who have tighter budgets. When this is combined with a limited supply, it can make the relationship between sellers and buyers tricky.
So before opening your house up to prospective buyers, you first need to know who will most likely be interested in your house. Your potential audience breaks down into three main groups: younger people, nature lovers, and suburban families.
The suburban family typically wants a 2,500 square foot house that has a basement. Nature lovers, on the other hand, want the views and privacy that are associated with being a bit outside of the city. The under 45 or younger crowd basically cares about cost and proximity.
Although not every house will fit with these demographics, selling your property is easier when you are able to imagine a specific type of buyer moving in. Is it an individual who loves to mountain bike during the summer and ski during the winter, since most people who live in Denver love the great outdoors? Is it a married couple with two children who moved to the city recently due to job relocation? Or maybe it is a millennial who lives in Denver due to its relative affordability? Check out your neighborhood and the specific characteristics of your home. Then tailor your property to the individual who sees it with the most potential.
After you have a good idea of who your main audience is, focus on what these buyers want: amenities and location.
A good rule of thumb is that a home’s value is 55 percent based on its location, with square footage accounting for 40 percent and amenities for the other 5 percent.
Families that have above-average incomes most likely will be attracted to your house if it is located in a premier neighborhood like LoDo, Cherry Creek, Hilltop, or Washington Park. Washington Park would be well suited for a family of transplants searching for a classic brick house on a tree-lined street (with a short commute into the downtown area).
Safety is what middle-income families who have young children are most interested in. The suburban Wellshire or Indian Creek neighborhood would be perfect. In a 2015 article, they were ranked as the area’s two safest places.
If the area you are located in is full of new builds, such as Central Park, Lowry, or Jefferson Park, you can instead play up all of the modern conveniences. Once a Denver buyer has found the best surroundings, they are interested as well in houses with certain classic details: wood flooring, yards, garages that fit their needs. If you don’t have these, you can play up things like clean carpets, being close to a park, and easy parking. Every single aspect count in a highly competitive market.
The further away a house is from the middle of Denver, the more likely the owner will need to spend money on upgrades in order to modernize their home for the current buyer, such as creating a chef’s kitchen or open floor plan. It will be easier for those who own houses inside of the city limits to sell their homes without those contemporary features since most likely; buyers will get financing and do it themselves.
Generally speaking, if you are close to the city, you can still get a good price on your house when selling, even without updating it.
Location is definitely one of the main features to the success rate of any house on the market. However, when considering the diverse spread of Denver’s 78 neighborhoods- from its central Uptown and LoDo neighborhoods to hubs that are artsier, like Capitol Hill and RiNo and their high traffic, relief is something that homeowners are definitely looking for.
It is estimated that around 88 percent of the residents of Denver commute by car. Public transportation is used by the rest for commuting. However, light rail has been expanding its reach over the past few years. Last month a report was published by CityLab that noted that Union Station, the central hub downtown, now connects to Aurora (11 miles to the east), Jefferson County (26 miles to the west), and Boulder (28 miles to the northwest). Theoretically, seven projects are completed, with five more still on their way. This should provide Denverites with a turning point. For now, commuters are still using cars. However, as the lines begin focusing on urban cores instead of the suburbs, the trend will likely change.
We are also beginning to see many buyers who want to buy properties that are located near mass transit.
It was found last year by the Colorado Real Estate Journal that prices for land located close to light-rail stations over the past five years have doubled. Downtown properties near stations have increased by $300 to $600 per square foot. If your property is located in popular Central Park, the light rail is like a miracle. Over the past three years, the price per square foot increased to $45 from $14-15. Millennials, in particular, want to be near light rail, so if your house is in a prime area, consider that demographic.
Many amateur real estate agents assume that a majority of sales must occur during the warmer months… For Denver, this is generally true. It is not as hard to sell a house when you don’t need to worry about showing a house in the evening after dark or snowy weather. However, winter months are starting to heat up.
In the past, the best months for sales were May through August. However, over the past two to three years, it has started to be earlier and earlier. Right after the end of the holidays, starting in late January through June, is now the best time to sell your house.
According to our research, typically, the best sales occur during the Spring and early Summer. The worst times are November and December as well as July and August.
There might not be as many buyers on the market. However, those who are searching are wanting to buy. These people are often those with children who are wanting them to be settled as soon as possible into their new school. However, it could be anybody wanting to make a fast sale, either due to a lifestyle change or a new job. Less competition and the higher potential for a close with winter buyers make this a more seamless process for sellers.
However, due to the limited supply and popularity of the city, do not worry if you want to sell your house outside of this time frame.
Denver is not a little city any longer. Actually, due to all of the new people moving in, Denver is a fairly large city. So no matter what month it is, there will be people moving.
The most important advice that we can give to sellers is to take the house selling process seriously and to hire top Denver real estate agents who earn their real estate commissions. It is the biggest transaction that many people will make in their lifetimes. Also, if it is not done correctly, there could be legal consequences. There is a lot more involved than just simply placing a “for sale” sign up in your front yard.
After you hire an agent who knows how the house selling process relates to your specific needs, they can work to get it sold fast.
The key to selling your house is to sell it as quickly as possible, particularly in today’s market. If your house is on the market for longer than one month, people will start to wonder what is wrong with it. That will ultimately result in a lower sales price.
When you are searching for a real estate agent, ask for recommendations from close friends and family. After you have a few agents to consider, ask them some questions to prove their expertise. According to our study, some of the most critical information to have is the agent’s knowledge of the local area, determining their sale to list price ratio, the number of homes the agent has sold in one year, and their average “days on the market.”
The key to selling or buying a house is to find the best agent who will meet your needs. It might not be the individual who offers you the lowest brokerage or commission.
There are a huge number of Denver agents that are listed online, so be sure not to get lost. Use comprehensive data instead of dubious five-star reviews in order to analyze the qualifications of an agent and make sure the individual knows exactly what you are looking for. Potential agents need to be communicative, understanding, and knowledgeable throughout the entire process.
You need an agent who will explain the entire process to you and will show the comps in order to determine what the property will be valued at by the appraiser.
Call us today and we will help you every step of the way. Why choose one agent when you can get the power of two. We know Denver like the back of our hands: (720) 352-7704 or [email protected].
Scott Jensen, a Denver Native, started his Real Estate career off investing. He owns multiple properties from Mobile Homes to an Apartment building. He has built, developed, and helped many clients buy and sell.
Lisa grew up in Fort Collins, Colorado and moved to Denver in 1999. She loves this city and can’t imagine living anywhere else. Real estate investing is what brought Lisa to be a real estate broker.
