Colorado House Finders

A report produced by Standard & Poor and Yale University economist Robert Schiller states the Denver Real Estate market is showing early signs of recovery.  This is based on results from the study that illustrates how the Denver Real Estate market has seen a 1.3 percent appreciation in home values between May and June 2007 and 0.8 percent between June and July.

According to the study, the Denver Real Estate home appreciations peaked in February of 2001 after a 15% year-over-year appreciation for the past decade.  Whereas, several other markets around the country continued to see significant increases in home value appreciations.  Since Denver’s rate of home value appreciation stabilized before several other markets around the country, S&P Vice President Maureen Maitland stated “Now,

Economist Michael Kone, principal of Boulder-based Housingmetrics, said there is still “intense pain” for the lower end of the housing market in the Denver area, with a “huge bump” in foreclosures to come, as subprime mortgages adjust upward.  Colorado is on pace to see more than 37,000 foreclosures filed this year, a 30 percent increase over the record set last year. Colorado and the Denver area are among the top 10 worst areas in the county for foreclosure rates.  Expensive houses, Kone said, are doing much better in the metro area.  Also, as always, there are pockets of strength.

Based on analysis that was performed by Bright Rain Solutions between July 2005 through June 2006 and July 2006 through June 2007, there are 30 Denver neighborhoods that have seen between a 10% and 36.6% increase in home prices.  However, on the flip side, there are another 30 neighborhoods that have seen between an 11.2% and 57.2% decrease in home values during the same timeframe.If you are interested in additional information regarding the topics covered in this article or need additional information regarding real estate in the Denver Metro Area, please contact us at info@coloradohousefinders.com.

Just the other day I was at a listing presentation with a prospective client discussing how to sell his home faster than the other active listings during the Denver Colorado real estate housing slump.  He of course wanted to know about our marketing strategy, communication plan, and competitive listings in the area and what I suggest for a listing price.   

Most successful agents who practice selling real estate in Colorado full-time instead of part-time will deliver a comprehensive plan for marketing and communication, however, there are very few within the Denver real estate market that have the experience or skill set to analyze any market and determine the optimum price that will sell their client’s house in the shortest timeframe. 

When evaluating your listing agent, it is important to pay attention to the marketing and communication plan, but it is absolutely imperative that your agent can recommend a listing price for your home and concisely illustrate the methodology to arrive at the listing price. 

The analysis should illustrate the general market conditions of the area, inclusive of current market conditions, employment factors, increases or decreases in property values during a 36 month timeframe, owner vs. tenant occupancy and comparable units for sale.  It should illustrate the marketability of the subject property inclusive of neighborhood value ranges, marketing time in the area, and specific comments regarding the positive and negative characteristics of the property that could affect the value. 

If your real estate agent provides you the analysis illustrated in the paragraph above, you are working with an agent that is a step above 90% of the other real estate agents in the Denver CO real estate market.  However, if you want your home to sell faster during a buyer’s market, you need an agent that will comprehensively evaluate the following characteristics of your home to arrive at the optimum listing price.  Such market factors and home characteristics as seller concessions, days on market, neighborhood location, site size, front and back yard views, house style, condition, room count, basement finishes, heating and cooling features, energy efficient items, types of porches, patios and decks, fireplaces and basement types.   

 If all of the following home characteristics are evaluated and compared against three to six past neighborhood home sales and current listings during a twelve month timeframe, it is without question that your agent will be able to recommend the optimum price to sell your house in the shortest timeframe.  Remember, 80% of selling your home in the shortest timeframe is a result of pricing it at market value from the beginning.

Just the other day my partner and I where showing a new client homes in the Highlands neighborhood in Denver CO.  The Highlands neighborhood is a very desirable neighborhood in the Denver real estate market, due to the bungalow style homes, urban feel, local shops and restaurants and proximity to Downtown Denver.   

Unlike many real estate markets in Denver and throughout the country, the Highlands neighborhood is one of the magnet communities that have experienced double digit (13 percent) home appreciation over the last year.  The problem with the high appreciation in a market like the Highlands neighborhood is that you get inexperienced agents that are unknowingly providing their buyers and sellers wrong advice.  This wrong advice could lend itself to a home buyer paying more than the house is worth and unforeseen negative home appreciation for many years. 

My client that I spoke of in the beginning of the article was working with an inexperienced agent who did not understand the Highlands neighborhood. However, they were fortunately also working with one of the Colorado House Finders’ appraisal consultants well versed in the Highlands community. 

The situation with our new client occurred when their inexperienced real estate agent made an offer on a house in the Highlands neighborhood that was overpriced by another inexperienced real estate agent.  Not understanding the Highlands market, this agent did not have the competency to advise the client on a reasonable offer to make on the house.  As a result, they made an offer on the house that was thousands of dollars over market value.  Fortunately, this client sensed doubt in their agent’s competency and as a result contacted one our appraisal consultants.  Our appraisal consultant provided a thorough analysis of the subject property and the Highlands neighborhood that clearly illustrated the subject was significantly overpriced for the market.

You are probably asking yourself why the purchase would have occurred and how the property would have appraised?  (more…)