Denver Real Estate Market is Hot!
Now, some sellers are seriously considering selling as a For Sale By Owner. Because Denver is one of the hottest markets in the country. Between being one of the sunniest cities in the US, Denver averages about 300 days of sunshine and a healthy economy, Denver is among the best places to live. Basically, the secret is out, and people are flocking to the Mile High City.
According to a recent study by Bloomberg, 1.34 people moved to Denver for every 1 person who moved out. With the influx of people wanting to purchase a home in Denver, homes fly off the shelves faster than Hamilton tickets! The spike makes some homeowners wonder if they should sell their home on their own as a For Sale By Owner.
Should I Sell For Sale By Owner?
Right now, most homes in Denver are selling at a record rate, typically for 5-15% over the asking price. The bidding wars have gotten out of control in some areas. With buyers offering $100,000’s over asking in some areas and offering to waive their appraisals, it’s a sellers’ market, to say the least. This phenomenon has some homeowners feeling like their best option is to skip the Realtor and become their own Realtor. For sale by owner homes, or FSBOs, are popping up all over town. But are these sellers really saving money in the long run by deciding to sell FSBO?
When a seller hires a Realtor to sell their home, they aren’t just asking someone to take some pictures and throw them in the MLS. Many full-service Realtors do so much more. Personally, we (The Hotz Group) offer a variety of services for our full-service listings.
Just some of our services include
- Assist the seller in determining the current market value of this home. It’s no Zestimate when pricing a home. Many factors are taken into consideration. If a FSBO underestimates the current market value, they will miss out on a bigger payday. If a FSBO overprices a home, it may sit and not sell.
- Help determine what is necessary to do to the home before going on the market. This could include deferred maintenance items that a seller would want to take care of before it shows up in an inspection. Also, sometimes there are small touches that will really help the marketability of a property and draw more potential buyers in.
- Hiring professional photographers and stagers at no additional cost.
- Advertising your listing beyond the MLS – Reaching out to fellow brokers and clients that have the ability to bring the seller a solid offer.
- Take calls and answer questions on the seller’s behalf.
- Sift through the endless amount of offers and vet each offer not only to determine the seller’s net proceeds from the sale but the risk of the offer. Not all offers are equal, and each carries a certain amount of risk to the seller. Many times the highest offer isn’t the best offer. The best offer will net your seller the most money with the least amount of risk that it will fall apart. Thus putting your seller’s home back on the market and wasting precious time.
- Negotiate on the sellers’ behalf to ensure the escrow period goes as smoothly as possible. Also, this warrants that there will be no surprises to the seller along the way.
The Real Costs of FSBO
Moving is stressful enough. Hiring a full-service Realtor can make the process less stressful and more streamlined. When it comes to paying a Realtor a commission, it’s not what you are paying; it’s what you’re getting. Not to mention the liability that sellers are putting on themselves when deciding to sell For Sale By Owner. Also, there are many instances where the seller can get sued for missing deadlines, misrepresenting something on the property, or forgetting to disclose adverse facts about the house. In fact, many smart Realtors choose not to represent themselves as By Owner.
The bottom line is if you decide to sell your property on your own, what you save in Realtor fees you may pay for somewhere else in the transaction. Please let me know any questions you might have on the form below.