Thanks to an abundance of tech and oil jobs, as well as being consistently ranked among the top 10 places to live in the U.S., Colorado finds itself in an unabating, unrelenting, undeniable sellers’ market. Prices in the state have been climbing as fast as those in California—and faster than New York. Given the buying frenzy, maybe you’re thinking about selling your home? If so, you need to understand your options and decide on the right approach for you. If you’re ready to feed your home to a ravenous market, here are a few ways to sell in Colorado.
Traditional Real Estate Agent
With your run-of-the-mill real estate agent, you’ll get a full suite of services. This includes all the listing details and getting your property seen by a decent selection of buyers. A traditional real estate agent can also arrange and conduct showings and tours of your home. However, there are some distinct disadvantages you will want to keep in mind.
The Disadvantages of a Traditional Real Estate Agent
Of all the drawbacks to hiring a traditional agent, the first three are the most important, namely: Money, money, and money. In a seller’s market such as Denver—where we have seen a consistent increase in real estate prices, you should be optimistic about the amount you can fetch for your home, and it wouldn’t be unreasonable to expect to make a profit. After all, your home may be the biggest investment of your life, and it may also deliver the heftiest return. With average year-over-year increases in Colorado home values reaching as high as 9%—or even higher—you could be looking at a handsome payday. For example, according to the averages, if you bought a single-family home for $408,357 in 2015, given the rate of growth in real estate prices in Colorado it could now be worth north of $600,000. Not bad.
The problem with using a traditional realtor is you usually have to chip off a big chunk of your profit to pay commissions. It’s not uncommon to see commissions go as high as 6% or higher. If a traditional real estate agent were to charge you even 3% on the sale of a $601,893 home, you’d have to cough up over $18,000. For that reason, a lot of home buyers have been opting for less-expensive solutions.
Listing it Yourself
Selling your home on your own appears to be one of the cheaper ways of taking advantage of a hot market—at least on the surface. When you take on the task of selling your own home, you assume all responsibility for the listing, where it will be published, and any pics, showings, tours, and closing details.
The upside, however, is that after paying lawyers, inspectors, and others involved in the process, you get to keep more of your profits. Some homeowners opt to get some help, even if they have the time to sell their own home.
The Disadvantages of FSBO (For Sale By Owner)
In many cases, you still have to pay a realtor when you sell your home on your own. Why? If the realtor brought in the buyer, they’re going to want their cut. This is typically 2-3% of the sales price.
Also, according to recent statistics, homes represented by agents sell for significantly higher prices than DIY sales. That’s a lot of cash. Granted, if you find a buyer who isn’t represented by a realtor, you stand to keep more of your profits, but the lower price may offset much of your gain.
Another drawback is that it tends to take longer for your home to sell when you do it on your own. This may be due to the fact that as you list it on MLS sites and classified spots like Craigslist, you may miss a few, limiting your exposure. In addition, an agent, in most cases, will know buyers who are already looking for a home—or may have friends who are agents that don’t mind sharing some of their business. All this results in more eyes on your property, which leads to higher demand, higher prices, and a quicker sale.
Sell to an iBuyer
When you sell to an iBuyer, your buyer isn’t an individual or family looking for a place to live; it’s an investor looking to nab a quick profit. iBuyers specialize in obtaining properties quickly and then selling them soon after purchase. They’re similar to flippers, but they often focus on properties that are already in fairly good shape. Selling to an iBuyer can help you sell your home quicker than some other options. However, there are some significant downsides.
The Disadvantages of Selling to an iBuyer
In exchange for an expedient transaction, you may have to sacrifice a lot of your profit—so the iBuyer can get theirs. An iBuyer is, essentially, a middleman that has to make money. They have to mark up the price of your home before selling it to a buyer. It’s common for iBuyers to offer you less than your home would get if you used a real estate agent. If you sell to an iBuyer, you may leave several thousand dollars on the table that should have gone in your pocket.
IBuyers also tend to charge higher commissions than real estate agents. It’s not uncommon for an iBuyer to charge 7%—or more—to the seller for their services. In addition to the money you leave on the table by accepting a lower offer, the higher commission also slices several thousand dollars out of your profits.
Use Homie to Sell Your Home
Homie gives you all the advantages of a seasoned, experienced real estate agent but without the hefty price tag. Homie also provides qualified buyers who have the financial power to give you a great price.
Homie Provides You with Expert, Local Agents
Homie’s team of agents give you the advantage of not only knowledge and experience in Denver but expert insights into the ebbs and flows of the local market and economy. Each market is different, and knowledge of local developments, trends, and sentiment can all be used to help sell your home quicker—and at a better price. With Homie, you get agents who have their finger on the pulse of the local economy and who know what makes local buyers tick.
Homie Markets Your Home for You
For the low fee you pay to Homie, you get professional, polished, thorough marketing to help power a quick sale of your home. This means your home is listed in several outlets, getting you the eyes you need to draw in offers.
Homie also provides you with pristine photos that showcase the best sides of your home. This gives buyers the chance to imagine how it would feel to live there, bringing them one step closer to signing on the dotted line.
The Colorado market is humming with buyers. If you’re ready to take advantage of one of the hottest selling seasons in recent history, click here to connect with us or call (720) 513-7607 to start selling your Denver home.
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