Everything You Should Know About Buying or Selling a Home in Denver
Denver Colorado real estate is known for being a hot commodity. This doesn’t mean, however, that your next transaction is a foregone conclusion.
As sought after as homes are in this awesome area, it’s vital that you arm yourself with knowledge before attempting to buy or sell. Our insights might make it easier to negotiate your next deal successfully, no matter whether you’re a seasoned house flipper or a first-time seller.
What Makes the Denver, CO, Market Special?
Denver real estate listings are uniquely situated among American markets. With average sale prices topping $400,000 in 2015 and homes staying listed for an average of only 26 days before selling, this is definitely a robust place to make a deal.
In recent years, Denver has been somewhat of a seller’s market. This isn’t to say, however, that buyers lack options. A wealth of diverse Denver luxury real estate gives new and seasoned property seekers ample recourse when it comes to choosing the perfect digs to occupy or flip.
Top Tricks for Smart Sellers
Selling your home in a favorable market doesn’t make you immune to fluctuations, random chance or outright bad planning. Keep the following ideas in mind.
Never get married to your initial asking price. It’s almost certain you’ll have to modify it to attract buyers, so why set yourself up for heartbreak?
One good indicator that you’re seeking too much is when nobody shows interest within the first few weeks or month. In such a case, seriously consider whether you can live with a lower asking price and how much you’re willing to slash.
Plan Sales With a Listing Agent
Still unsure what your property is worth on the open market? Talking to an agent can help you get a feel for comparable listings in similar neighborhoods. Because these professionals are experienced at discovering material defects and identifying favorable property aspects, you’ll be able to hone in on a more realistic price.
Constructing your listing with a realtor’s assistance also gives you a major competitive advantage. Instead of stabbing in the dark at current trends, you can portray your home in a way that reflects what people are looking for. You’ll never satisfy every potential buyer, but you’re more likely to tick all the boxes for at least one seeker.
Put Your Realtor to Work
Listing agents aren’t just useful when it comes to marketing your property. They also have connections you ought to leverage.
For instance, your home may have a lot of strengths, but they could easily be overshadowed by a messy foyer or heavily abused kitchen. Even if you’re still occupying the property while it’s listed, you should ask your Denver realtor to put you in touch with home-staging experts who make things look less lived in.
Your agent should also locate rapid, cost-effective cleaning companies, repair contractors and builders. These services play a big role in correcting cosmetic or serious material deficiencies that might knock down your final selling price. Curb appeal, lighting, furniture arrangement and landscaping really matter. It’s best to be on your A-game, especially considering how many other Denver sellers you’re up against.
Have Your Property Inspected Early
Getting your property inspected helps you avoid nasty issues like lawsuits should it later come to light that you didn’t disclose serious deficiencies, such as mold infestations, asbestos construction or lead-painted walls. Inspections also give you the heads up you need to correct these problems and make your property more appealing.
Once again, you can’t rely too heavily on the seller’s market phenomenon. Instead, you have to work to make your home worth buying. For instance, nobody in their right mind wants to purchase property that puts them or their family in danger, so why not fix that damaged roof?
Also remember that buildings with hidden costs and fixer uppers aren’t as appealing to savvy buyers. The sooner you have your home inspected by a licensed professional, the faster you’ll learn about things you need to fix to stay competitive.
Better Buying Strategies Made Simple
How do buyers leverage their consumer power in the Denver luxury real estate market? The following tips might make your game plan more bulletproof:
Find the Right Local Team
Most people know they ought to interview different realtors before choosing one to sell their home. There’s no reason that you shouldn’t be just as cautious when buying.
Your real estate agent or agents need to be intimately familiar with the neighborhoods you’re looking to move in to. These professionals often have the inside connections and advance knowledge required to discover listings before they hit the general market. This is a huge advantage in a city where you might make multiple bids before hearing anything positive back.
Don’t feel tied to an agent who isn’t doing their due diligence. If you suspect your realtor may be under motivated or falling short due to lack of experience, upgrade to someone who better represents your interests.
Be Ready to Adapt
Sellers can afford to pick and choose, so you should expand your reach by considering different areas and Denver real estate listing types. For example, you may be pretty enamored with LoDo, but don’t expect sellers in this in-demand hot spot to reciprocate your affection by cutting you a break on pricing. Staking a claim in Aurora or another nearby region might also make sense depending where you work.
Know Your Rights
Smart home buyers leverage protections like mortgage, appraisal and home inspection contingencies. These contingencies mean that even when the seller has accepted your offer, the final sale depends on the transaction satisfying specific criteria.
With appraisal contingencies, your lender gauges the home’s fair-market value before you actually buy. If they discover that the sale price is higher than the property’s worth, you can cancel the deal. Mortgage contingencies give you a predetermined period of time to obtain a sufficient loan for your new mortgage or cancel the sale and retain your down payment. Home-inspection contingencies ensure your prospective residence undergoes professional inspection and give you the right to cancel the sale if the seller doesn’t agree to make proper repairs.
How do appraisals relate to your rights? You have the power to waive these conditions, and many buyers are tempted to do so while fighting for highly competitive Denver real estate listings. Although such a strategy can make your offer seem more appealing to sellers, it might also put you at increased risk. For example, you could lose your deposit or have to pay for repairs yourself. It’s especially important not to waive your appraisal contingency as a first-time buyer who lacks sufficient cash resources to fund the difference between what your lender covers and the selling price.
There are ways to make your offer more competitive without sacrificing helpful rights or contract clauses. For instance, if you don’t plan on moving in right away, you may benefit from giving the seller the opportunity to rent the home they just sold you for a few weeks after closing so that they can find a new place. Staying adaptable when it comes to specific appraisal, inspection and closing dates also makes sellers more inclined to negotiate with you.
Pick a Good Lender
If you’re like most consumers, you’ll rely on lending to fund your purchase. While your seller may not judge you based on who you apply for a loan with, finding a financial agency that provides prompt, flexible service grants you more offering power. Choosing lenders with established reputations also gives the impression that you’ll actually close the deal.
Go Beyond Internet Listings
The homes you find on popular national real estate websites are indeed varied, but are they the cream of the crop? Those in the know may disagree. Just as you ought to favor local agents, using local listing websites could help you find properties you’d never normally encounter. These sources may also feature listings much earlier, which is fairly useful in Denver.
Of course, these tips are highly effective, but they only scratch the surface. Whether you’re buying or selling property in Denver, it’s vital to start by studying the market. You also need to be aware of potential pitfalls, such as picking an appropriate home insurance policy and negotiating a sale commission you can live with.
It isn’t impossible to enter the world of Denver Colorado real estate and emerge with awesome results. You may have to work hard to put a smart plan into action, but you’ll definitely benefit from your perseverance in the long run.
Ready to discover more about mastering the market? Talk to one of our Denver realtors today. You can also check out our other blogs and social media posts for extra insights, or just leave your questions and thoughts in the comments below.