Denver luxury homes market is one of the busiest, most lucrative, and most competitive real estate markets in the country. It can be difficult to sell a property in this city, especially if you don’t know the ins and outs of the market. To help you along, read these key points to remember when selling a home in Denver.
- Why are you selling your luxury property in the first place?
What motivates you to sell your Denver home? Is it because you plan to move out of town or move up to a better community? Do you have some legal or financial obligation to sell your home? Whatever your motivation is, it is the defining factor that can affect your sale. Deciding whether you want the fastest way to dispose of the property or the way with the maximum amount of returns will also determine how you sell your home.
- Never divulge your reasons for selling your property.
Your intentions for selling your home can affect how your prospective buyers will negotiate their offers. You can easily be driven into an unpleasant situation if you let your intentions come out so easily. Never release more information than is needed during the negotiation and closing process in order to avoid unfortunate implications.
- Do thorough research and analysis of your home’s true value before setting an asking price.
Basing the price of your home on your original investment or paid price is a big no-no; this could lead to overpricing, making the property uninteresting to prospective buyers. Ask a pro to give your home a value estimation, while look around and see the trend of home sales in your neighborhood. How your neighboring properties were sold in the past months or years can help you determine how you can sell your own home.
- Do your share of visiting open houses or have your agent show you.
Knowing the competition is a key step in helping you sell your own property faster. This often involves you having to visit open-house events like any other prospective home buyer. Take note of what makes the property stand out, like fixtures, colors, location, floor plan, and asking price. These points can help you determine what you need to focus on so you can also sell your home at a better price.
- Appraisals can help give another perspective.
Appraisals are made to give an estimate of the true worth of your luxury property. They can help you determine whether you have a good chance of getting a good deal if you sell your home. However, it is not always accurate, it costs money to hire an appraiser, and most of the results do not always come out positive, so take it with a grain of salt. Real estate can be higher subjective and emotional so knowing how your home really compares and should be positioned in the market is critical. A great agent knows how even the little things can make a big difference in the speed and price of your home.
- DO NOT mistake tax assessments as a yardstick for determining the value of your home.
This is a common misconception with certain home sellers. Tax assessments take several criteria, and not all of those criteria are related to home valuation. Keep this in mind when determining how you will provide your initial asking price.
- Find a qualified real estate agent.
Marketing matters. A great real estate agent knows all the important aspects of a luxury property selling process, from the initial listing to the sale closing. Veteran agents will provide connections to trusted appraisers and real estate legal professionals who can help expedite the selling process. With a huge transaction verifying the agents experience and knowledge should be a top priority.
- Find a qualified real estate agent.
Appearances make a whole lot of difference in the real estate scene, so it is important to spruce up a home’s look before it goes up for sale. The right appearance can easily affect a prospective buyer, making them more likely to negotiate with you.
- Always have an honest second opinion.
Never regard your own convictions as the last say with how you will sell your home. Always discuss things not only with your agent, but with your friends and relatives. Gauge their opinions regarding your property, filter in the most pressing and most outstanding components, and do something about them immediately. Good and bad comments should be welcomed together.
- Clean and fix every corner of the property.
Tidy up and repair anything that needs cleaning and fixing in the home. It doesn’t matter whether the part is seemingly insignificant; it can make all the difference in the end-game. The buyers can put it against you if they find that there are a few broken bits of plumbing or missing floor tiles, after all.
- Let the prospective buyer feel right at home in your property.
It would put a dampener on the prospective buyer if they attend your open house but they feel like they are visiting a stranger’s property. Try to remove personal effects, pictures and other similar items prior to a home showing to avoid these feelings from welling up. In their place, you can add items that enhance the positive atmosphere and further making the prospective homebuyer feel at home.
- Be on the lookout for offensive odors and smells.
Musky scents are a big negative for a home, especially a luxury estate. Clean up any sources of possible odors that can set up alarms with prospective buyers, like cigarettes or pets.
- Do not hide any defects or negative aspects with the home.
Selling agents advise their clients to be open about the negatives that are attached to the property they are trying to sell. While this might be a deal-breaker in some instances, it can also help move the selling process along, since the seller has provided full disclosure of the home’s defects. Both parties can then deal with these defects during closing.
- More prospects means more chances to sell.
Better marketability for your home means that more people will try to negotiate with you to get it. This is a better prospect than just having one buyer, because the buyers will be focusing on making a better offer than the others instead of reducing your positive returns from the sale.
- Keep your emotions in check during the selling process.
Letting your emotions dictate the pace of the sale can spell disastrous results for your prospects, especially if you are blinded by the amount of time and money that you’ve invested in the property. Always deal with prospective buyers in a professional way to get the best results.
- What motivates your buyers?
Know what drives your buyers to be in the market for a new home to buy. This knowledge can help you dictate the pace of your negotiations and help you get the better end of the bargain.
- What is the actual purchasing power of your prospective buyers?
Determine how much money the buyer is ready to pay, and how much mortgage they can already avail of before you decide on closing a sale. Pre-qualified buyers are better prospects because they are more financially stable. However, don’t disregard buyers with lower offers; ask their buying agents to determine their purchasing capabilities.
- Determine when the buyer wants to close.
Be updated with a buyer’s deadlines for completing their negotiations with you. This knowledge provides another trading advantage for you as a seller.
- Focus on your home sale before committing to a new home purchase.
Doing two negotiations at once—selling your current property while closing a purchase for your new one—can be a source of financial problems for you. Try to get a bit more stable with your finances and finish all your mortgage obligations before committing to a new home purchase yourself.
- Do not move out of your home or consider staging.
A vacant home doesn’t sell as well as a still-occupied property. It also sends the message that the seller is just disposing of this particular home since the seller already has a new one. Avoid moving out before the sale as much as possible to avoid sending these false messages. Having a professional agent help you stage your furniture or arrange for staging if vacant can have a huge impact on your sale price and time on market.
- NEVER provide selling deadlines for yourself.
Never stick to an inflexible schedule when selling your property. This puts you at a serious disadvantage and can equate to even more lost chances to sell, as well as less returns from the sale.
- Don’t take a low offer personally.
Always look at any offer objectively, no matter how low or how far from the original asking price it might be. The important thing is that it has all the necessary payment points covered. That way, you have a basis from which you can renegotiate the prices.
- Counter a low offer where possible.
Renegotiate offers that are just below your selling price with an asking price of your own. This sends the message that you are serious about selling your home at your listed price, filtering out the few buyers who will not push through with negotiating with you.
- Sometimes the buyers just don’t fit.
Not all buyers are qualified to purchase your home. Checking their ability to borrow or verifying funds for a cash purchase is a critical step that many agents might overlook or not understand. Luxury homes in particular typically have more complicated financing or in the case of a cash offer the availability and verification of funds should be the first requirement.