Hello and welcome to the November edition of my monthly real estate update. My hope is that my e newsletters provide you with valuable information and a quick overview of what's going on in our market currently. I've made some modifications to the newsletter to make it easier for you to 'Refer A Friend' and receive $500 cash and created links to my listings and video blogs. Hope you enjoy.
October was a fairly strong month for purchases but with a slight weakening over last month and last year. Closings were down 5% in October compared to September and down 10% from a year ago. New listings to hit the market were actually down 8% last month compared to September but were up 18% from a year ago showing that sellers are finally getting the message that it's a good time to sell. Obviously with closings down and listings up we have a bit of a more balanced market compared to the crazy Spring and Summer frenzy. I'm still seeing multiple offer situations and prices being driven up on price ranges between 250 - 500k frequently but above that homes are sitting longer and some sellers are having to the price. Just in the past week I had to negotiate 3 properties with as many as 8 offers and encouraged my buyers to go over asking price and with some creative negotiating I was able to secure all 3 homes for my clients.
There is still a strong expectation that the Fed will raise interest rates in December so unfortunately we've seen mortgage rates rise some in step with this prediction. Hopefully they rise slowly and not very much or it could certainly have negative impacts on buyers and sellers alike. I'm asked often where do I think interest rates will go and honestly its a bit like shaking the magic 8 ball. Nobody really knows but since they have been so low for so long it's safe to bet they will go up it's just a matter of when.
Please enjoy the articles below and I hope you find them helpful.
All signs point towards a strong real estate market for Denver over the next 6 months so if your plans include buying or selling a home call me and we can figure out a plan that will best suit your needs. Troy Warrick
Homes on Market both Single Fam & Condo = 8,563 down 5% in listings over September but up 7% compared to the number of listings a year ago
Home Sales in October = 4,644 or down 5% from September & down 10% from last year
Under Contract October = 6,341 down 1% from September but up 8% from last year
My New Listings
2239 Lasalle St in Superior - $599,900 Under Contract 3
9062 Copeland St in Littleton - $647,900 Available
Gorgeous 5 bed, 4 Bath semi-custom home in Province Center with finished basement. Very luxurious!
Selling your home is a big deal — so while it may be tempting to go with the first word-of-mouth recommendation you get, when it comes to choosing a real estate agent, it pays to do a bit more research. Your real estate pro will be responsible for setting the sale price, marketing your home, running open houses, speaking with potential buyers and ultimately, walking you through the selling process. To make an informed choice, ask friends and neighbors for personal recommendations, but also take the time to interview several of the best candidates before making a decision. Here are 15 questions to ask potential real estate agents.
1. What is your experience and education? Though a new real estate agent can certainly be motivated and eager to please, a pro with years of experience will have the knowledge and skill to face unexpected challenges. Taking continuing education courses shows a commitment to keeping up with changes.
2. Is this your full-time job? Having another job shouldn’t necessarily cut a potential real estate agent out of the running, but you need to be aware if this is a part-time gig before committing. Someone who also works somewhere else may be harder to reach and could miss out on opportunities to show your house.
3. Are you a member of the National Association of Realtors? Membership in this professional organization is what allows a real estate agent to use the title Realtor. Being a Realtor means that the person has agreed to follow the organization’s ethical guidelines and to keep up with continuing education.
4. What’s the price range of most of the homes you have sold? You probably already have a ballpark figure in mind for your home’s price. Does the agent typically represent homes in that price range? If most of the homes the agent sells are in a far higher — or lower — price range, he or she may not be as familiar with how to market your home.
5. How many homes did you sell last year? This will give you an idea of the volume of work a real estate agent is used to taking on. This number alone is not enough to base a decision on, but keep in mind that a very high number may mean the agent is not able to give each client as much personal attention, whereas a very low number could be a clue that homes are languishing on the market.
6. Which neighborhoods do you primarily work in?
If the agent typically works in areas far from your home, it may mean that he or she is not as familiar with the market in your area. 7. How many homes have you sold in my neighborhood?
Good word of mouth tends to spread within neighborhoods, so if your real estate agent has had a lot of home sales in your area, that’s probably a good sign. Familiarity with your neighborhood can only help your agent sell your home. 8. On average, how close to the asking price is the final sale price on homes you have sold?
This figure will give you a good picture of whether the agent tends to price homes well. If most of the homes the agent has represented have sold for far less than the asking price, that’s a sign they were priced too high. Realistic pricing results in home sales that are close to or at the asking price. 9. How will you market my home?
There is a lot more to marketing a house than putting up a for-sale sign on the lawn. In addition to MLS
, on how many websites will your agent list your home? Where will he or she look for buyers? A good marketing plan can be what makes the difference between a speedy sale and a home that languishes on the market. 10. What are the negatives of my home?
You are not looking for a rainbows and unicorns response here. An agent that is a good fit should be able to name several potential drawbacks to selling your home, from repairs to location and beyond. That said, you will be spending a good deal of time with your real estate pro, so seek out someone with a realistic but tactful approach. 11. Do you work on your own or as part of a team?
If the agent you are interviewing heads up a large office, it may be that he or she will not be the one doing business with you the entire time. If that’s the case, you should know up front exactly how the agent will be involved, and you should be able to meet the other agents who will be working with you. 12. How many clients are you currently representing?
There is no magic number to look for here; just use your common sense. If the number is very high or very low consider that a red flag — you are looking for someone with a thriving business who still has time to devote to your home sale. 13. What type of support staff or resources do you have?
This could include anything from technology help for creating a beautiful website for your home to an in-house real estate attorney. 14. How will you keep me informed about progress?
Find out how frequently you can expect your agent to check in with you, and when he or she is available for you to call with questions or for updates. 15. Can I see your references?
Ideally, ask for the names and phone numbers of three of the most recent clients. You want to know whether people are happy with the real estate agent’s work now, not five or 10 years ago. When you talk to former clients, ask how easy it was to reach the agent when they had questions, and whether they felt well supported and advised throughout the process. To sum up:
It’s common for real estate agents to prepare an informal presentation to give you in your home. This gives the agent a chance to see the property in person, and explain what he or she can do to represent your home. Consider keeping a written list of your questions in front of you during the presentation, and jot down additional questions that occur to you during it. Wait until the end and ask any questions that weren’t covered. Once you have your list of candidates narrowed down to a few top contenders, take the time to call those references, and check to make sure that each agent’s real estate license is in good standing. And when the interviews and research are done, trust your instincts — you’ll be sharing sensitive financial information (not to mention spending a lot of time) with this person, so you want it to be someone you trust (and like).
25% Of The Listings We Had In 2007
Both REColorado and DMAR, two key market stat entities released their October reports last week. DMAR focuses on the 11 county metro area. Here are some great stats from DMAR's October RE Report.
Mostly positive news except for the higher end market where homes seems to be in less demand. A 1% increase per month would be pretty manageable growth whereas anything more than that could be cause for concern that prices are going up too fast.
- There were 7,156 single family listings in October, a 6% increase from last October. Personally, I never saw anywhere near this many listings in the MLS in October. On October 31st, I saw 6,446 properties for sale including raw land and multi-units. There were 4,996 homes and condos for sale on Halloween.
- For perspective in October 2007 we had 28,928 listings. The number of listings today is 25% of 2007.
- Anthony Rael, Chairman of DMAR's Market Trends Committee, believes 1 reason the number of listings is increasing is because higher-end homes have been staying on the market longer.
- The average price of a SFR rose 1.7% last month from September to $403,795.
- The median price of a SFR rose 1.8% last month from September to $346,000.
- The average price of a condo rose 4% last month from September to $263,362.
- The median price of a condo rose 1.5% last month from September to $214,500.