If you’re thinking about selling your home in Colorado, you’re in the right place. So far By 2022, homes and condos in the Centennial State will sell for about 3.7 percent of their original asking price, according to data from the Colorado Association of Realtors — indicating the state’s real estate market is hot. However, listing your home for sale doesn’t automatically mean a huge profit. Use this guide to understand when to list, how to attract more buyers, and what to expect from the entire process.
Preparing to sell
Before you start thinking about how much you can get from selling, consider whether you’re ready to part with your current home. There’s an emotional connection, so you need to make sure you’re okay with leaving a place you’ve spent a lot of time with. There are also serious financial considerations, especially if you are trying to sell your home while buying another. If you’ve thought about it and are ready to sell your home, it’s time to answer three important questions about the property.
1. Is it worth improving your home before selling it?
A major renovation or renovation takes a long time and costs a lot of money, and most projects don’t recoup their full value when it’s time to sell. So it’s not worth it to remodel the entire kitchen or build a new home office before listing the home. However, it’s still smart to consider quick or inexpensive improvements that can add value to your home without spending too much.
2. What should you fix before selling your home?
Think of it this way: If you’re buying a home, you should consider fixing anything you need to fix. For example, if a crazy Colorado day damaged your outdoor deck, you might want to fix that before you show the house. Also, think about possible underlying issues. A pre-listing inspection can help you get ahead of any major problems before they are discovered by a buyer.
3. Should you pay to stage your house?
You might also consider investing in a professional home staging service—like dressing up your home in the perfect evening gown to turn every buyer’s head. Home staging costs vary depending on whether you need minor sprucing up or more complex services like long-term furniture rentals, but it can be money well spent. First impressions are an important part of the real estate game, and a well-rated home can make someone looking for a new home in Colorado feel right at home.
When is the best time to sell a home in Colorado?
The best time to sell a home in any market is when you can sell quickly. Historical data for home sales in Colorado shows that June and July are the most promising months for sellers. According to the Colorado Association of Realtors, over the past two years, homes have spent an average of 22 days on the market during these months.
Finding a Colorado real estate agent
When trying to figure out the best time to list your home in Colorado, it’s wise to have a local expert on your side. With the right real estate agent, you can design an effective promotional strategy that gets your listing in front of the right buyers. Of course, you have to pay real estate commissions—typically 3 percent to your agent and 3 percent to the buyer—but that fee is well worth it. According to data from the National Association of Realtors, agent-assisted sales are 18 percent higher than FSBO or for-sale-by-owner listings.
Price your home competitively.
Your agent will have a good idea of the price tag you should attach to your initial listing. You can start by getting a clear picture of how much your home is worth. Your home’s value ultimately comes down to the market, however, so check the comps in your city and area to get an idea of what similar homes are selling for in your area. The best way to an effective pricing strategy is to see what properties have sold recently, say in the last 30 to 90 days.
Documents and statements in Colorado
While your real estate agent does the work, you have important work of your own to do: fill out the Colorado State Seller’s Disclosure Form. It’s about taking a thorough look at everything you know about the property that could affect the price, and you need to be honest about any past issues or defects. Did a hurricane three years ago cause roof damage that needs to be repaired? You need to register here.
In addition, Colorado sellers must fill out a separate green disclosure form that explains all the details about the home’s energy efficiency (or lack thereof). And finally, if your home is part of a homeowners association, you’ll need to share documents about the association’s financial health and any special assessments on the horizon.
Want to sell your Colorado home fast?
Don’t feel like waiting for a traditional sale – or can’t afford it? You have options. Here are four quick ways to sell your home in Colorado.
- iBuyers The “i” in iBuying is instant. Enter your address online, and companies like Offerpad and Nook will often give you an offer within 24 hours. But be aware: iBuying offers quick cash, but it may be less than what you’d get with a traditional sale.
- Cash discounts; If your home is in poor condition or you simply need your money ASAP, you may want to look into companies that buy houses for cash. While individual buyers may see your home as too much of a money pit to fix up, many real estate investors see it as an opportunity to fix up and flip.
- In case of sale: When you list your home as is, you are declaring that you are not willing to make a deal or negotiate back and forth with anyone interested in the property. Therefore, it avoids many long delays that can occur with other sales like sales.
- Adding curb appeal: Clean the windows, paint the front door, install a new mailbox – there are quite a few ways to add instant curb appeal to any home. First impressions are important, and a welcoming home can be a fast track to an offer.
What to expect at the closing
Costs of selling a home in Colorado
The most important thing is to understand how much the closing process will cost you. The buyer may be paying for the house, but you need to open your wallet. The biggest expense will be paying the real estate agents involved in the transaction. Although commissions have been declining recently, the standard fee is 3 percent for your agent and 3 percent for the buyer’s agent. So, if your home sells for $700,000, the realtor fee is $42,000.
Seller’s closing costs
- Warranty of Ownership: Title insurance falls on the shoulders of the seller in Colorado. This price depends on the selling price and the location of the house. For example, if you have to pay for a title policy that covers about $500,000, you could pay somewhere between $1,500 and $1,900 based on Stewart Title Guaranty Company’s rates.
- Transfer Taxes: Colorado imposes a real estate transfer tax to cover the cost of transferring title to the county or city records. But you’re in luck: the buyer typically covers these, so sellers don’t have to budget for this expense.
- Accommodation Fees: Sellers in Colorado may need to shell out some cash for additional fees that cover the cost of managing the funds in the transaction. This cost varies, and can be split with the buyer.
- Dealer discounts: If the buyer finds inspection problems, they can ask for a discount to help cover part of their closing costs. You don’t have to say yes – do the math and work out with your agent whether or not you can offer discounts, and if so, how much.
- Attorney Fees: You are not required to have a real estate attorney to sell a home in Colorado. But still consider hiring one: you’ll sign a lot of papers, and a lawyer will read them all, look after your needs, and notify you of any issues.
Take the first step
Are you really ready to move? Start by interviewing a few different local real estate agents – preferably those who come with high recommendations from friends or family. Be sure to ask these important questions about how to sell your home.