Click here to view online with images.
 
 

DMAR Real Estate Market Trends Report | October '16  

Denver metro experienced a seasonal slowdown, but housing indicators point to a hot fall. Days under contract for homes on the market continues to increase.

September produced a seasonal slowdown, however indicators to above normal numbers of active listings. According to the DMAR Market Trends Committee, these indicators combined with homebuyers anxious to lock-down low-interest rates could make for a hot real estate market in the fall.

Read more... 

To view the entire report, click here...

-Don't miss Frankenstein at the Denver Performing Arts Center

-Check out the Fall Festivals happening all around town

-Keep your kids safe this Halloween - Check the Treat Map

-Get above 9000 feet and experience the changing Fall Foliage from an unforgetable perspective

Transaction Advise: What are Pocket Listings?

The MLS cooperative, or multiple listing service (MLS), allows members to provide homebuyers more choices and to give sellers more opportunities to sell their homes. Members agree to share their listings with other members within a reasonable time, typically between 24 hours to a week after the listing agreement is signed between the seller and the broker.

Marketing a home takes time and preparation for the seller and the listing broker. The seller needs time to prepare the home for sale - declutter, paint, plant fresh flowers, repair fences, stage the home and so on. The listing broker needs time to present the listing to the MLS with photos, tours, descriptions, tax roll data and showing information.

Until the listing agreement is signed, the home stays “in the pocket” of the broker, who is free to contact trusted agents and their own qualified buyers and tell them the home is coming to the market.

Why are pocket listings useful? The broker can sell the listing before competitors learn the home is available. The broker’s buyers benefit because they have the first opportunity to view the home and make an offer. Sellers can get their homes sold quickly.

So how does a buyer hear about a pocket listing? A broker will reveal a pocket listing only to a buyer who is qualified to buy that particular home, who understands the home isn’t show-ready or on the open market. The buyer must be prepared to act quickly and make an offer that is attractive enough for the seller to accept.

Fall Tips: Get Your Home Ready for the Chill

The days are getting noticeably shorter, and maybe there's a nip in the air - fall is definitely on its way. Now is the perfect time to get your home in shape before winter rolls in, while the weather is still pleasant enough for spending time outdoors.

Seal it up: Caulk and seal around exterior door and window frames. Look for gaps where pipes or wiring enter the home and caulk those as well. Not only does heat escape from these openings, but water can enter and may eventually cause structural damage and mold problems.

Look up: Check the roof for missing or damaged shingles. Winter weather can cause serious damage to a vulnerable roof, leading to a greater chance of further damage inside the home. Although you should always have a qualified professional inspect and repair the roof, you can do a preliminary survey from the ground using binoculars.

Clear it out: Clear gutters and eaves troughs of leaves, sticks, and other debris. Consider installing leaf guards if your gutters can accommodate them - they are real time savers and can prevent damage from clogged gutters. Check the joints between sections of gutter, as well as between the gutter and downspouts, and make any necessary adjustments or repairs.

No hose: In climates with freezing weather, drain garden hoses and store them indoors to protect them from the elements. Shut off outdoor faucets and make sure exterior pipes are drained of water. Faucets and pipes can easily freeze and burst, causing leaks and potentially serious water damage.

Warm up time: Have the furnace inspected to ensure it's safe and in good working order. Most utility companies will provide no-cost inspections, but there can often be a long waiting list come fall and winter. Replace disposable furnace air filters or clean the permanent type according to the manufacturer's instructions. Using a clean filter will help the furnace run more efficiently, saving you money and energy.

Light that fire: If you enjoy the crackle of a wood-burning fireplace on a chilly fall evening, have the firebox and chimney professionally cleaned before using it this season. Creosote, a byproduct of wood burning, can build up to dangerous levels and cause a serious chimney fire if not removed.

Home Improvement Tip: Five Best Kitchen Remodeling Tips 

Negotiations don’t necessarily end when you and the seller sign the contract to purchase. You have the right to have the home you’re buying inspected for soundness, which you can include as a contingency to your offer. That way, if the inspection reveals a serious issue, you and the seller can address it through renegotiations.

During the inspection process, the inspector is required to tell you about the condition of the appliances, heating and cooling, electrical and plumbing systems, foundation, roofing, exterior materials and so on.

Depending on where you live, you may also get separate inspections for pests and environmental issues such as radon. You’ll also learn if your future home is up to current building codes and what needs to be done to bring it up to code.

Most sellers expect to make reasonable repairs and replacements if the inspection reveals an issue that wasn’t obvious when you first agreed to terms. As long as communication remains open and civil, the seller should have as much desire to make the sales contract work as you do.

Sellers Advice: The Seller Who Tests the Market

When you see the market rising, it’s tempting to price your home even higher than nearby homes that recently sold. So you tell your listing agent that you want to "test" the market to see if you can get even more for your home.

Sometimes, it’s appropriate to choose a list price higher than recent comparable sold homes, but that strategy seldom works unless the market is climbing rapidly. If you’re looking for a quick, hassle-free sale, you need to decide which is more important – getting more for your home or moving on to your new life somewhere else.

Let’s say your neighborhood’s highest, most recent home sale was $500,000, and your agent suggests a listing price of $510,000. You want to test the market at $530,000 - which is $20,000 more than your agent recommends, and $30,000 over the latest comparable.

Your home hits the market at $530,000 and has tons of showings the first week. Your strategy is working, except that you don’t receive any offers. By the second week, there are few to no showings. Agents are reporting back to your listing agent that their buyers said your home “needs work,” or that they “found something more suited to their needs.”

After months of making two mortgage payments, your home finally sells at $518,000. Meanwhile, you paid months of overhead to get $9,000. You actually lost peace of mind and threw away a lot of money.

Overpriced homes simply take longer to sell. If you’re tempted to “test the market”, remember that the market will test you.

Homebuying Tip: Renegotiating After the Home Inspections

Negotiations don’t necessarily end when you and the seller sign the contract to purchase. You have the right to have the home you’re buying inspected for soundness, which you can include as a contingency to your offer. That way, if the inspection reveals a serious issue, you and the seller can address it through renegotiations.

During the inspection process, the inspector is required to tell you about the condition of the appliances, heating and cooling, electrical and plumbing systems, foundation, roofing, exterior materials and so on.

Depending on where you live, you may also get separate inspections for pests and environmental issues such as radon. You’ll also learn if your future home is up to current building codes and what needs to be done to bring it up to code.

Once the inspections are complete, you have to decide if any problems found are worth renegotiating. It’s a risk because your existing contract is no longer in force and the seller is free to accept another offer. Renegotiate only for a system that is unsafe or expensive to replace.

Most sellers expect to make reasonable repairs and replacements if the inspection reveals an issue that wasn’t obvious when you first agreed to terms. As long as communication remains open and civil, the seller should have as much desire to make the sales contract work as you do.

Kelly Elizabeth Westergren

Broker Associate, Realtor
Kelly@KellyWestergren.com
303-883-4913
www.kellywestergren.com

Visit me on TwitterVisit me on LinkedIn
Share this with someone:

2500 E. 6th St., Ste. B Denver, CO 80206
©2017 BHH Affiliates, LLC. Real Estate Brokerage Services are offered through the network member franchisees of BHH Affiliates, LLC. Most franchisees are independently owned and operated. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc.® Information not verified or guaranteed. If your property is currently listed with a Broker, this is not intended as a solicitation. Equal Housing Opportunity.