Life, you might say, is a composite of highs and lows. There are good times and there are not-so-good times. Metro Denver real estate sales follow similar seasons. "Where are we today?" - It's a good question.
Today, it appears, we're in a period of regeneration. The Denver real estate market is settling out; it's regrouping.
Of course, real estate is "location, location, location" and we'll examine the locational differences in this blog during the next few days. But we can extrapolate important facts in the process of studying metro-wide statistics.
In 2006, 5,091 single family homes were sold in Metro Denver. In 2007, that number declined slightly to 4,813 sales; in 2008 there were 4,934.
Today, real estate analysts anticipate 3,900 single family home sales in 2009. That's a steep 23.50% decline in home sales since 2006.
Yet there's a silver lining: Outpacing the decline in Denver home sales has been the decline in inventory. And that's why Denver isn't experiencing a textbook buyer's market. The inventory of available single family homes has decreased nearly 29% since 2006. Stated most succinctly, today's buyers have fewer choices than Denver homebuyers in 2006.
In a traditional buyer's market, the pool of sellers exceeds the pool of buyers. And the sellers have equity in their real estate investment; they can adjust their price according to market demand. Today, however, sellers are not in the equity position needed to lower their price. And many sellers are multinational financial institutions - banks - who establish home prices not on market trends, but upon internal loss mitigation guidelines.
Are we in a distinctly low real estate market period? It's certainly lower, metro-wide, than 2006. However, neighborhood analysis will point to some different trend lines. Tomorrow we'll look at Wash Park.
A client recently asked, "What is the value of my home?" He went on to say, "I purchased the house for $309,000 in 2005, and since then I've made $18,540 in improvements. So it should be worth at least $327,540."
Our Denver real estate team explained to the homeowner that market value is not related to the original purchase price. It's related to the recent sales prices of similar homes in the neighborhood.
We also reviewed the home improvements made by our client. The house was 20 years old, and he had replaced the old windows. He also replaced the old laminate kitchen counter with a new laminate counter, because the old one was chipped. And he replaced the original water heater as well as the original carpet.
The homeowner, in other words, had simply maintained the home in functional condition, just as his neighbors had maintained their homes. His maintenance projects were necessary, not optional.
We examined the Denver real estate sales data for his neighborhood, and we found that six similar homes sold for $340,000-$355,000 during the 90 days prior to our market analysis. It's critical to look at the current market data; sales that are older than 90 days are too old to be considered accurate.
Ten similar properties were currently listed for sale in our client's neighborhood, priced $335,000 to $375,000. Our client wanted to know about the highest priced neighbor. Understandably, he wondered if his own home might be worth as much.
The house priced at $375,000 had been listed for over 8 months. We previewed the home and found that it sported a gourmet kitchen, far nicer than any other kitchen in the neighborhood. The homeowners had also installed a luxurious home theatre, unusual for that community. One bedroom was also painted a dark navy blue.
Unfortunately, unique and over-improved homes priced above neighboring properties do not sell for significantly higher prices. In fact, they tend to languish on the market, just as this one.
When you consider selling your home, hire a professional Realtor that takes a detailed look at the current market trends in your neighborhood. If you have made significant updates to your home, such as replacing the laminate counters with slab granite, and replacing the standard kitchen appliances with top-of-the-line models, your Realtor will know the "Return on Investment" that you can expect in your neighborhood. Together, you'll assess the facts about recent home sales, and you will understand your home's current value.
Finally, prepare your home for sale. Repair the little things that get forgotten, like the worn weatherstripping. When buyers see an exceptionally well-maintained home, they feel confident that it's a solid investment. Handsome homes that are priced accurately sell in every market.
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Kathie Shandro is an experienced Realtor in Denver, Colorado. Visit Denver-HomesForSale.com for Denver real estate listings and information about Denver's neighborhoods, like Stapleton real estate.
Selling your house? Just remember one simple truth: Handsome homes that are priced accurately sell in every market.
In this article, we're going to focus on one aspect of the Handsome Home - the master bath. An unusual luxury in the 1960's, the master bath has become an absolute necessity in our generation.
Yours might be a small space, a three-quarter tucked into a 6'x 6' space. But it can still be a restful place away from the active areas of the home. Simply scrub it squeaky-clean, and invest in the following updates:
1. Paint. Every bathroom needs to be freshly painted before listing. Choose a restful color for your bathroom wall, such as Behr's 'Himalayan Mist'. The color should evoke restful thoughts.
2. Lighting. The light fixture above the vanity attracts immediate attention by homebuyers and their agents. Install a new fixture, such as the Trump Home Brushed Nickel bath light.
3. Mirror. If your vanity mirror is worn or scratched, replace it with an attractive framed mirror.
4. Towel racks. Unless your towel racks are nearly-new, they should be replaced with an updated design. Be sure to change the toilet paper holder, too.
5. Towels and Bath Mats. Purchase the highest quality towels that you can afford, in a shade that matches your wall color. Be sure to purchase matching bath mats, too. And if your bath requires a shower curtain, purchase a high quality curtain with a very simple design.
Above all, store your cosmetics and toiletries out of site each morning. The countertop should have a fresh bar of soap or liquid soap dispenser, a fragrant unlit candle, and a fresh hand towel.
When prospective buyers step into your master bathroom, you don't want them to feel as if they've invaded your private space. Instead, you want them to feel as if they've stepped into a spa retreat that has been prepared especially for them.
If you update these components of your bathroom and create a clean and clutter-free area for rest and relaxation, prospective buyers will pause and relax in your master bath. And that's the goal. The longer a buyer stands quietly and admires your master suite, the more likely an offer will be written.
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Kathie Shandro is an experienced Realtor in Denver, Colorado. Visit Denver-HomesForSale.com for Denver real estate listings and information about Denver's neighborhoods, like Castle Rock Real Estate.
Your real estate agent has suggested that you hire a home stager, but you're not sure. Or you've heard about home staging, and you wonder what it entails. What is home staging, and why should you stage your home?
Home Staging is the process of rearranging your furnishings in order to make your house the preferred home among buyers. It generally includes packing away unneccessary furniture and home decor, especially objects that reflect your personality.
Home Staging does not include washing the windows, sweeping the porch or dusting the furniture. Any tasks that might be considered home cleaning and home repair tasks are necessary prior to listing. You want to get the highest possible price for your home in the current market, and homes that are well maintained attract solid offers.
When your home is staged, the professional you've hired will stand in your living room, in the likely spot that a homebuyer will view the room. From that vantage point, your home stager will work to open the room, making it feel comfortable and inviting.
"But wait, " you might say, "my home is already inviting. My friends always compliment my home." The difference between your friends' perspective and a new homebuyer's perspective is key, however. Your friend looks for reflections of your personality; the homebuyer does not.
Homebuyers are trying to imagine their life in your space, often in less than 10 minutes. It is critical that your furnishings help the buyer "try on" your house to see if it fits. For that reason, homes that are professionally staged sell faster, and for more money, than other homes.
For example, when children's bedrooms are staged as simply as possible, with most toys and decorations packed and stored for the move, buyers without children can easily picture their home office or guest room in that space.
So embrace the idea. Listen closely to the home stager and follow her advice. You'll be glad you did.
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Kathie Shandro is an experienced Realtor in Denver, Colorado. Visit Denver-HomesForSale.com for Denver real estate listings and information about Denver's neighborhoods, like Cherry Creek Real Estate.
As I wrapped up the first six weeks of 2009, I decided to assess the current state of affairs in the Denver real estate market. The results brought a smile:
1. First time homebuyers continue to find tremendous value in the low home prices, low interest rates and the $8,000 tax credit. I'm currently advising several young professionals who are interested in building wealth through real estate investment.
2. Investors are competitive bidding on bank-owned properties that are priced below market value. One of my Denver real estate clients bid $112k on a house listed for $104k. Think he's crazy? He lost the first two houses to competitive bidding and was tired of not getting the structurally-solid homes that are almost ready-to-go. The appraisal came in today at $129k. He's going to invest about $20k in repairs (new windows, kitchen appliances, flooring, new light fixtures and new interior doors/doorknobs). And then he'll sell it for $170k. Not bad for a month's work.
3. There's a great deal of pent-up demand among move-up and down-size clients. They're watching the market with great interest, and they're ready to list and sell their properties as soon as we see indications of balance in the market.
4. Many Denver neighborhoods have strong home values. Sales in Highlands Ranch were down 48% in January, but the prices weren't down significantly. Wash Park and Potter Highland are doing exceptionally well, too.
5. The Metro Denver Economic Development Corporation issued its study, Toward a More Competitive Colorado, noting several positive factors about Colorado:
All-in-all, it appears that 2009 will be a great year to buy and sell real estate in the Denver area. I'm pleased that I have several clients whose short and long-term financial goals are well-served by the current economic conditions in the Denver real estate market.
I'm open for business. If you have questions about Denver real estate investments, call 800-515-0657. You can find me at www.Denver-HomesForSale.com.
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Search over 25,000 Denver real estate listings on my website, www.Denver-HomesForSale.com. Our team serves buyers and seller's Denver real estate needs throughout the Front Range.
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