Although there are signs nationwide that indicate the housing market is slowing, the luxury Denver real estate market remains highly valued and sought-after. If you’re looking to sell a house in the Denver luxury real estate market, you’ve come to the right place. Here’s what you need to know when it comes to selling an exclusive home in Denver:
Denver luxury real estate listings are special because they are uniquely situated among American markets. A luxury home includes homes that sold for over $1 million. The number of these homes in the Denver metro market have demonstrated a significant year-over-year increase.
In fact, according to the Denver Metro Association of Realtors’ latest report, the average metro Denver luxury home price (single family and condo) was a healthy $1,494,090 in July 2019. This was 1 percent less than last month but still over 5 percent above last year. Luxury single-family homes average sold price was $1,515,458 in July, a 2.28 percent increase from June and almost 5.5 percent above last year
Sales volume year-to-date for luxury properties is a record $2.222 billion, a 6.25 percent increase over 2018 YTD.
As one of the fastest growing states, Colorado’s growing popularity has created a fortified luxury sector since 2015. Overall, the number of Denver luxury homes sold continues on a trajectory of upward growth in Colorado. In 2015, 654 luxury homes sold from January-July. In 2019, 1,439 luxury properties sold during the same time frame. That illustrates a 120 percent increase! Even looking at the overall picture from a smaller time frame, the number of sold luxury homes has increased 53 percent from 2018 to present.
Because these homes attract a certain buyer, it’s important to keep in mind the following tips when getting ready to sell a high-end home in Denver’s luxury real estate market:
Plan and Prep
In order to secure a high sale price in the Denver luxury real estate market, it’s important to complete an assessment of the home. Then, with the help of an experienced real estate agent, you can determine what needs to be done to present your home in the best possible light. Put your Denver realtor to work. Listing agents are critical for more than just marketing your property.
Stage Your Home
A key strategy is removing clutter and personal items from each room, investing in updates and doing some home staging. Your home might have many strengths that are easily overshadowed by messy or abused rooms. Even if you’re still living in the listed property, ask your realtor to give you the number of some good home staging experts. They can make the house look less lived in and more attractive to potential buyers. Additionally, your agent can and should locate rapid and cost-effective cleaning companies, and repair contractors to correct cosmetic or more substantial defects that might lower your final selling price.
Invest in Updates
One of the biggest mistakes a seller can make is not spending enough time preparing their home for the market. Avoid the assumption that you don’t have to make your home show well just because the current market is robust. Instead, take professional advice that details in which updates to invest. This will likely allow you to increase the return on investment from the sale of your home. The idea is simple: you can and will often get more money if your house looks good. Buyers at the Denver luxury real estate price point want turnkey, move-in ready homes, and homeowners who invest in good updates are the ones that most likely will get the higher sale price more quickly.
Invest in a Quality Photographer
The majority of buyers start their search for new homes online. This means it’s important you invest in professional, high-resolution photos for your home’s website. Having a quality online listing will create interest and demand for the home before it even goes on the market. In the end, this will help bring in offers quickly.
Make Sure the Price is Right
Obviously, price is an important factor in real estate. Make sure the price is right for your home. Although sellers are currently enjoying peak profits, it’s critical to look at comps and set a thoughtful listing price. Buyers are smart, and they do their research. They’ll know if a property is overpriced or competitive. The key to getting into a multiple-offer situation (while may seem counter-intuitive) and price lower. Then, let the market demand the raise in price. If you overprice, it can hurt you in the end because a sale won’t move quickly enough. You’re better off listing at a more realistic price point to draw greater attention.
Don’t Shoot Too High out of the Starting Gate; Create Demand
Begin by setting a listing price just three days before coming to the market. Do this after you or your real estate agent have thoroughly reviewed the home’s condition and comparable listings in the neighborhood. A good real estate agent will go even further and talk to his or her colleagues to see what comparable listings are in the works. Look for a skilled agent who knows how to work with multiple offers. By doing so, it’s likely you won’t leave any money on the table.
Get a Move On
We’ve heard it time and time again–time is money! Pricing a high-end home aggressively will make it move quickly. This is an imperative component in the Denver luxury real estate market.
In July 2019, luxury homes in the metro Denver area sold after an average of 57 days on market; the median (middle) number of days on the market was 20. Most homes sold for 97.6 percent of their list price. Obviously, the majority of home owners would like their homes to sell quickly and for the most ROI so it’s imperative to tastefully show your home and price it reasonably
Are you looking to buy or sell a luxury home in Denver? Contact Usaj Realty and hear how the current market conditions for the Denver luxury real estate market are working in your favor.
(Editor’s note: This blog was originally published in April of 2019. It has been updated and corrected to show current trends).