I was talking to a friend the other day and the subject of real estate came up. It seems like these days everyone likes to talk about the real estate market.  This friend wasn’t in the market right now to do anything, instead she was just curious about home values for her Highlands Ranch neighborhood.

If you read my blog regularly then you have likely heard me talking about absorption rates, especially regarding market statistics.  I’ve tried to explain how it relates to home sellers and buyers but it occurred to me that for many, the idea may not be too clear. Basically, absorption rates are derived from dividing the number of active listings by the number of sold listings for a specific period of time.  This is the basic and easiest way to determine absorption rates.  There can be other methods, such as using pending sales, etc…but generally this is it.

So, what can absorption rates tell me and why do I care? Once you’ve done the math, the number you come up with will be the amount of time the local real estate market is absorbing the current inventory.  In other words, this shows how fast are they selling.  Nowadays, this number is typically a number of months of inventory in a particular area.  As a home buyer or home seller this number can provide you a valuable target.  Sellers can determine for themselves how long the market is absorbing homes in their area and then determine how to price and market their own home to be on the front end of that time frame.  Buyers can use absorption rates to help determine the relative strength of a neighborhood and how to price an offer.

I hope this brief explanation helps you understand this key real estate statistic. If you are considering selling or buying a home in the Denver metro area, and you would like to discuss an effective strategy for your success then please contact me, I would love to help.

This is the time of year that the Denver real estate market always seems to heat up. Sellers begin to put their homes on the market and buyers begin to actively look to purchase.  It seems that nearly every year the trend is mostly the same.  We have had a few tough years lately in the Denver real estate market and the activity has been down but the trend is relatively the same. This year can potentially be a more vibrant real estate market due to several factors, including the current buyer tax credit which is set to end April 30th.

So, what are just a few things sellers can do to improve the odds of selling their home in this prime time of the season? Well there really are no secrets that we all haven’t heard or read before.  The basics remain the key to success.  In working with buyers in the Denver market and listening to their input, I can offer a few suggestions that may be useful.

1.  Curb Appeal – Take a little time to spruce up the yard and outside of the house.  We had some early snow here in Denver, perhaps you never even had a chance to do that last of the year clean up before the snow started. Add mulch, mow, trim, maybe power wash or at least hose down the cobwebs off the siding, especially at the front porch and door.  This is the first impression and if your otherwise beautiful home has no curb appeal, sometimes the buyers won’t even bother to come in.

2.  Clean and Declutter -  Don’t take this lightly!  Also, don’t take it too personally either.  If your home is cluttered and maybe in need of some elbow grease then take care of it.  If your agent or someone else has told you this, then don’t take it personally, just take it as good advice and act on it.  You probably wouldn’t try to sell your car or any other valuable asset without first cleaning it up a bit, would you?

3. Stage it - The feeling a buyer gets when touring your home is so important.  You want to make sure your home is staged to offer a warm, comfortable feel to the buyer.  Sometimes this is just a matter of using what you already have and strategically placing it.  Sometimes it may require the services of a professional stager.  If it is within your budget, then a professional stager can work wonders for your home’s appeal.  In any case, another set of eyes can usually make a difference.

4.  Exposure – Where is your home being marketed?  You aren’t just relying on a sign in the yard and maybe an ad in the paper are you?  Today’s buyers are first looking to the internet by an overwhelming majority.  You need to make sure your home is exposed to the millions of potential buyers out there with a solid internet strategy.  This should include not only traditional websites, but a strong social media exposure as well.  This is vitally important and crucial to your success.

5. Price – Yes, its true.  No matter what you’ve done to prepare and market your home to the buyers out there, if it is too overpriced it still won’t sell.  You’ll need a good pricing strategy.  Pay attention to market reports and absorption rates for the local real estate market.  Be realistic and flexible.  Your price needs to be in line with the fair market values in your area.  You won’t fool the buyers and certainly not the appraisers.  I regularly post market reports and trends for different areas of the Denver real estate market so you can always check back here, or contact me and let me know what area you are looking at & need info for.

I hope these few tips can help you in preparing your home to sell.  Many sellers beat the odds and get top value for their homes in minimal time, even in this market.  Usually, it is because they have taken the time to set themselves apart from the competition.  If you’re considering a move in the Denver area, give me a call or email, I would love to help.

Looking for more info about Selling Your Denver Home? Try these…
What is an Absorption Rate?
Selling Your Vacant Home?
Your House Won’t Sell if Buyers Can’t See It

Steve Scheer, Denver Realty Partners

Search all Denver & Denver Suburb Homes Here

If you would like more information on the Denver area or more information on Denver real estate, contact Steve at 720-849-6101.

If you are planning to sell your Denver home this fall or winter, here is a quick tip for getting a home on the Denver real estate market from October – March, particularly if you have a gorgeous yard.

Take out your camera and snap a few photos.  Your beautiful garden with perennials, flowering bushes and the like.  If your yard is covered in snow during showings, and your landscaping is a true gem, it can be nice to show off what is buried below the frozen ground. 

If you have photos like this at your fingertips come December, your Denver Realtor will thank you.  Your future potential buyers will thank you too.

As a REALTOR® in Denver, I see many homes throughout the Denver metro area all of the time as I have been very busy with home buyers. Lately I have been to homes in varying price ranges and in different areas and neighborhoods. My car has taken us through Highlands Ranch, Parker, Englewood, Greenwood Village, Castle Pines North, and Centennial in just the last 10 days or so. The price range has varied from buyer to buyer from around $320,000 to just under $1,000,000.

For the most part, with some exceptions, the homes when you walk in the door are in stellar shape. They have been cleaned from top to bottom and most would certainly pass the white glove test. Most of them show beautifully. But lately I have seen something across the board – even in one of the higher end properties. Lack of curb appeal. Not even lack of, but negative curb appeal. I know its getting hot and it gets harder to keep the grass green in the Colorado heat. My own yard is needing some TLC – but I am not selling my home.

Here are some tips.

1. You have to figure out a watering pattern that is going to work for you and keep you within watering guidelines as well. Denver Home Buyers do not want to buy a home with dead grass. If its getting brown already, don’t give up, you can bring it back. Grass can be resilient unless you let it go too long. And if need be, bring out a professional to have your sprinklers adjusted. If they are missing spots, they can help you correct that.

2. If you haven’t sprayed or pulled weeds, especially the dandelions, do it now. They are starting to take over in many cases.

3. A potted annual for about $15 at your doorstep could really help make things a bit cheerier – but only if you are going to water it. I have already seen a few dead ones.

4. Filthy doors or door knobs? Wipe them down. I think I saw pink frosting from little fingers on one this week.

5. Cobwebs on the outside of the house, take care of them.

6. Bird droppings on the windows? Get them washed.

7. Dead tree in the yard. Get rid of it.

Curb appeal is the first impression of your home. It is where the emotion of the buyers begin. If they have a positive vibe as they walk in that front door, that is a good thing. No vibe, or worse yet a negative one – not so great.

And here is something else to consider – a bonus tip if you will. Curb appeal doesn’t start at your doorstep. More likely than not, a buyer is not going to pull into your driveway and walk the path that you always walk to the front door. They more likely than not will park at the street or across the street – or if you live on a corner – around the corner.

Take a few steps in these directions, turn around and see the home your are wanting to sell from that viewpoint. Perhaps a look from another angle could shed some light on a hidden item you need to address. If you are on a corner, are there weeds along your fence? Is there a ton of debris in the street in front of your house – sure the street sweeper will come eventually but why not just do it now? Are neighborhood dog walkers leaving presents on your grass near the sidewalk? On on the sidewalk? That would be a turn off.

And here is one more tip. If you have children, do your curb appeal check often. You never know what hidden little jems you are going to find that they have left laying around, especially after a weekend of playing in the yard.

Read Also: Selling Your Vacant Denver Home – Are You Properly Insured? Highlands Ranch Home Sold In 48 Hours! In This Market? Steve Scheer, RE/MAX Masters, Inc. Denver Real Estate

Home Improvements: Will I get my Investment Back?

On a fairly regular basis I will get a call or email inquiry in regards to home
improvements. It is generally from someone not moving now but knows they will
have to at some point and they are trying to figure out where their home
improvement money is best spent.
Usually the asker is thinking about improvements to their kitchen, bath,
basement, or an addition.
And, the question is cut & dry – Will I get my money back out if I need to sell.

But the answer is not as cut and dry as people want to hear. They WANT me to
tell them, yeah – sure, no problem. But chances are good at this point that I
am the one they will call when they sell and I want to be sure that…
…I have given good advice
…they aren’t upside down in improvements
…they know what to expect
If you are wondering the same type of thing – you need to consider many things
and I even ask some questions to make sure you are thinking of the full picture.
I have learned throughout the years that many times when I get these calls the
homeowner already knows he is going to be moving at some point and he wants to
make sure his house is sell-able and competitive.
Do you think you will be moving in the next two years?
If the homeowner already knows they are moving, they may want to make big
improvements that are not really necessary. Its one thing to replace worn out
old & stained carpet. That would be a good investment. It will help sell
your home overall. Will you get every penny back? Probably not every -
buyers just plain old expect to have decent carpet in a home.

But here’s another scenario – rip out a perfect good kitchen just to have
granite counters, new floors and shiny new appliances. Sometimes worth it,
sometimes, not. Read on….
Why do you want to make the improvements? Are they purely cosmetic or do
things need to be done….

I truly believe that there is a value that you can place on the enjoyment of
your added improvements. And I think its very important for homeowners to
understand this. Many don’t. Some think a dollar spent is a dollar coming
back at them. Often when a homeowner feels that they should ask more for
their home because they finished the basement, or whatever…I will as them if
they would have done that if they knew they were going to sell soon. Almost
all reply with a no. Then I ask why? They say because I won’t get my money
back. It seems that they have answered the question themselves about pricing
it to recoup the money. Back to the granite in the kitchen above. Or this
could even be about finishing a basement. If you are going to spend $30,000
to finish your basement, you probably are not going to be able to get $30,000
more for your home. If you are going to be in your home for 1 year, will that
difference be worth it to you. How about in 3 years? Or 5? Chances are, if
people know they are leaving soon, they will not make a huge cosmetic
enhancement once they really think this through. When they know they will be
staying in their home 3+ years, they will begin to see that there is a type of
non-monetary value in enjoying their new improvements, and they are more
accepting of what their return will be.

You are thinking about adding granite to the kitchen kitchen and stone floors
and plan to be in the house 3 – 5 years. Perhaps you think its worth the
investment when they consider time added value. Now you ask more specifically
- how much value can I add and not overprice myself out of my neighborhood?
You talk more, and they are directly inquiring about the project itself. The
nitty gritties. That is being smart. You need to sure your home is still
sell-able. I would discuss such things as the percentage of homes in his
neighborhood that have sold in the last few months and what is in them. Slab
vs tile granite. Stone vs hardwood floors. Black appliances vs all stainless
steel. Its always nice to have the nicest home on the block. Sure can be
nice to live in. But it isn’t always the easiest one to sell when it comes
time to. Especially if you think you are going to get all of your monetary
investment back. It is very important that homeowners understand the risk of
making their home too nice and pricing themselves out of their own
neighborhood.

But with that said, currently in the Denver area, re-coup of kitchen remodels
is very high – between 75 – 80%. This is definitely one of the top areas that
you can add a lot of value and really enjoy great enhancements. I can not say
this enough though, upgrades to your kitchen do far more than effect the value
of your home – they can dramatically enhance the overall appeal of you home.
The kitchen is often the soul of a home. I have seen kitchens make or break
deals, many times. This is also an area I would recommend that you consult
with a decorator or home improvement professional for planning purposes, even
if you are going to do the work yourself.

Especially in this changing market, homes that do have great improvements will
sell faster than homes needing major improvements. If there are 50 homes on
the market, all equally nice and 10 have a finished basement – those 10 are
most likely going to sell faster – as long as you listen to your agent and
still price it correctly. Again, this may mean not getting every penny back
on the investment of enhancements.

Back to paint and let’s add carpet to the mix. Before considering larger
jobs, don’t forget or underestimate the value of paint and carpet. Both are
amazing at adding value and can dramatically changing a home. Investors have
been aware of these two gems forever!

Outdoor improvements – Building a Deck or Patio: In Colorado we spend so much
time outdoors that a deck or patio is almost a necessity. The question is
deck, patio or either at all? Both can be very beautiful and always make a
great addition to the home. Sometimes you may not have a choice as is the
case with walk out basements. Decks may require more maintenance but for many
they are preferred. Resale value of a deck or patio is around 75% – 80%.
However, living without one may not be as enjoyable.

Roofs: Do you need a new roof? Is the roof damaged? Of course, the home’s
roof is critical. If your roof has been damaged check with your insurance
company to see if a claim can repair of replace the roof or its damaged areas.
If the roof is older or just seems worn out then you may want to look into
replacement. If you are trying to sell, I’m sure that the buyer will have an
inspection that will discover this anyway. Roof replacement can be costly and
will return around 67%, however roof leaks can cause much bigger problems.

Windows: Windows don’t have to be very old before needing repair of
replacement. If your windows are damaged or no longer efficient then
replacement may be a consideration. If the windows are newer and failing,
have a professional window contractor out to determine the cause and recommend
the next step. Sometimes the windows may be under warranty or at times, a
class action law suit that may help with replacement. Window replacement can
also be costly and will return around 80%.

Bathroom remodel: Are your bathrooms too small or outdated? Maybe you just
need one more. In any case, bathrooms can also be costly but worth the
investment. Most bathroom remodel jobs should return around 70% – 75 %

Pop-Tops are still very popular in parts of Denver. Where they can’t expand
out, they expand up. Pop-tops can increase living space enormously and will
continue to be an attractive option for those that need to increase space but
wish to remain in Denver.
In the end the decision is yours but I enjoy providing valuable food for
thought. While I do want you to improve your house if its the right decision
for you, I want you to do it smart. I want you to love your improvements. I
want you to be happy with what you decide to do. When it comes time to sell,
price your home correctly, get a good return but fair on your investment. You
don’t want to be in a position that you think you can overprice your home and
get your money back. Over-priced homes do not sell, no matter how nice they
are.
Recoup statistics used in this blog can be found here and are based on the Rocky
Mountain Region.

Vacant Homes For Sale Are Probably Not The Same As Occupied Homes In The Eyes of Your Insurance Policy

Recently we had breakfast at my mom’s.

The kids had slept over and we went over for some breakfast burritos when we picked them up. Thanks mom! My mom always has a little article or tidbit to share with me when we visit. She just rips them out of the newspapers or magazine that she finds them in. I love seeing what she has to share as its generally rather interesting and I enjoy seeing what sparked her interest. On this day, it was a real estate article as it often is. Common Interest.

She had read an article in the Denver Post a while back and had saved it for me. It discussed the dangers of having your home on the market while it was vacant. It was a good reminder that I should discuss this issue here. You can read the article here. Of course, there are many homes in Denver that are now being sold vacant due to longer times on the market, quick relocations and a variety of other reasons.

And I would be willing to bet that most of those homes that are vacant have homeowners that do not know that they are putting their home insurance policy on the line. If you have to make a claim while your home is vacant, you may not be covered. The majority of home insurance policies are for occupied or owner-occupied homes – and if you are leaving your Denver home vacant – you need to let them know and maybe even make a change.

Whenever I have a seller that needs to leave a home vacant while it is still on the Denver real estate market, I do remind them that they need to check into their home insurance coverage and see what changes need to be made. Recently I was told by the seller when discussing this, that over the years they had sold numerous homes that were in a vacant state and no one had ever told them this.

Now of course I am not an insurance expert. I am a Denver real estate agent. So you need to do your homework to know for sure what YOUR policy covers and when and under what conditions.

But I do know that the chances are pretty good that this is something you need to take notice of if you are going to be leaving your Denver home vacant while it is on the market. If you have pipes burst, a break-in or even worse, a fire, you need to know if your home is covered if it is vacant. Check it out.

Highlands Ranch Real Estate – How Is It Possible To Sell A Home Quickly In This Market?

I have been repeating it over & over in my blogs, on my web sites, on the phone and in emails.

Price and Condition. Price and Condition. Price and Condition.

I recently listed a beautiful home in Highlands Ranch. Beautiful. Talk about Condition. Extra time before going on market was taken to get it in tip top shape.

I did my usual diligent research in coming up with the price. Careful consideration, market research, evaluating buyer trends in price ranges.

I suggested the price – what I knew was the right price – the sellers approved.

Did they want to try and get just a little bit more and see what happens? Did they want to over-price just to see what they may be able to get ?

NO! They listened to their Denver REALTOR®.

Word hit the street of this beauty and the showings were made. Quickly. 48 hours and 4 contracts later the house was Under Contract. That’s right, 4 contracts.

Just to be clear. This house was NOT under priced. It was priced right.

If this home had been priced higher the story would not have been the same. In fact, there would have been no story because it would probably still be an active listing waiting for showings to be set.

Price your Highlands Ranch home right, and get it in immaculate shape. It will sell. And this rings true for other parts of the Denver metro area as well.

If you are a seller in Highlands Ranch in the high 200’s to low 300’s listen to your REALTOR®. This really stands true for all home sellers but I see the most interest in that price range currently. Purge your home. De-clutter. Clean up and make your bath tubs sparkle. Start packing and getting rid of your "stuff". And price it right.

There are home buyers in the Denver real estate market. Willing and able and approved buyers. I know. 3 of them didn’t get my listing and they could be waiting for yours.

Every now and then I get a call from someone either relocating to Denver or needing to leave Denver that is directly tied to a Corporate Relocation package. Some are past clients that I have sold Denver real estate to, others have been referred by my clients or found me in other ways. In any case, it seems that there is, at times some confusion tied directly to corporate relocation.

The number 1 question that is asked over and over: Do I have to use the Denver Realtor® that the Relocation company has suggested? And the answer is: probably not. I almost can say, that answer is no – but there are a few very unusual circumstances where that may not be the case – so we will leave it at probably not.

Now that doesn’t mean you shouldn’t. It just doesn’t mean you have to. Its your house, your transaction, your comfort level, your decision.

If you have a Denver REALTOR® that you have used in the past, that you were very happy with and you trust, there is no reason why you can not tell the relocation company that you would prefer to use them. Yes, the relocation company is going to ask that REALTOR® for a referral fee, and I can speak for myself that I do and have paid this fee at closing – that is how they partially fund your relocation in the first place.

Now its true, if you already knew the REALTOR®, they aren’t truly referring you – but that is how it is done – and that is fine. Its just the way it is. Would you receive any less service from me because I have to pay them? NO! I have even encountered from time to time that an individual has felt that they had to use someone the relocation company has suggested and has later been shocked to find out that is not the case.

There are a variety of reasons why someone may have felt that way, perhaps even a miscommunication – but the bottom line is – if you have someone you want to use – just tell them!

Now in the case of relocation out of Denver, often times the relocation company will want you to "interview" more than one agent before listing your home. In many cases this is the way that they get an accurate feel of how much your home is really going to sell for – by getting more than one opinion. They may even make a suggestion as to who they want for the listing.

But if you have a strong opinion one way or another – this is your chance to speak up and get the ball rolling. If you tell them, I want to use ___________, they most likely will be fine with that.

I have done many corporate relocations with all of the major relocation companies and am very familiar with their guidelines, forms, processes and all the additional pieces that in entails.

I am prepared to make your relocation in or out of Denver as easy as possible for you and if that involves a corporate relocation company – I am more than happy to work for you.

Scenario: You are out with your Denver REALTOR® and you have searched high and low to find the perfect house to call home.

And then it happens. You find it! You know you want it! Its got your name all over it. You are excited! Very Excited!

But wait! Its not yours quite yet. May I make a suggestion? Shhh! Keep your lips sealed!

Over the years I have encountered numerous occasions where a buyer’s excitement is their own doing-in. What do I mean?

Here are a few scenarios. They are all real life experiences that I have seen occur, no names or telling details of course – just lessons to learn by.

Scenario #1 – You found the perfect home in the perfect neighborhood. Its a brand new listing, you were one of the first to view the home. You just made a decision to buy and you are meeting your Denver REALTOR in one hour to write the offer. In your joyful exuberance you BLAB to your next door neighbor the news. You happen to include the price you are going to offer.

You are so psyched – you are buying a new home! Fast forward two hours later and you find out that another offer came in that was just a little better than yours. Fast forward to a month later, you find out the person that got the house happens to be your neighbor’s (that you blabbed to) cousin. Of course you didn’t know the cousin was searching for just about exactly what you were wanting as well.

Scenario #2 – You are leaving a home that is high on your short list. As you are leaving you decide to come back later without your agent and walk the neighborhood. Upon doing so, you meet a lovely lady that is taking out her trash and you stop and chat. You find out all sorts of wonderful news about the neighborhood. She asks you if you are going to make an offer. You say yes, probably.

24 hours later you decide for sure to make an offer. Your REALTOR calls with the bad news, I am sorry, but that home is suddenly Under Contract. Fast forward to a month later, you find out sweet old lady knew someone also interested that was waiting to see if the price went lower. She tipped them off that they better make a move.

Bottom Line – Its a Very Small World Out There. Even in the south metro Denver real estate world, the communities that we live in and want to live in are much smaller than some people understand. Chances are not bad that someone you know will have some sort of connection to a home buyer or home seller in your future.

Keep Your Lips Sealed. One the deal is done you can shout from the rooftops your excitement & joy!