Denver Real Estate Market Update – August 2016

Inventory of Metro Denver Homes for Sale Increases for Second Consecutive Month. Buyers feel relief with price improvements and an increase of listings.

According to the latest data from REcolorado, July saw another welcome increase in the number of homes for sale in the Denver Metro and surrounding area, while prices decreased month over month – both welcome signs for buyers.

Sellers continued to bring new listings to the market, but at a slower pace than last month. Still, July ended with 8,859 listings of homes for sale, which was 10 percent higher than last month and just one percent less than this time last year. Throughout the month, 7,483 new listings came on the market, nine percent less than last month and seven percent less than last year. The supply of inventory for the Denver metro and surrounding area inched up to approximately seven weeks.

Although average sale prices saw month-over-month decreases, they are still up year over year. In July, the average sale price of a single-family home was $408,406, down 2 percent as compared to last month, but 12 percent higher than last year. The average sale price of a detached home was $453,637, while condos/townhomes saw $285,062 as their average sale price.

“As we draw close to the end of the traditional summer selling season, we anticipate the market to remain strong but stable, as increasing inventory continues to provide buyers with more and varied opportunities,” said Kirby Slunaker, president and CEO of REcolorado. “As the larger Colorado economy continues to strengthen, we expect the housing market to remain strong. Our members describe the overall market as stable and sustainable.”

We typically see a month-over-month slowing of home sales in July. This July was no different. During the month, 5,192 homes sold, a four percent month-over-month decrease and down 19 percent as compared to July 2015. Throughout the month, 7,023 homes went under contract, a three percent decrease as compared to last month and two percent less than last year.

Let the Bandy team help you with all your real estate needs! We will guide you through all phases of the home buying and home selling process in Denver. Our home purchasing experts can show you terrific homes in Stapleton, homes for sale in Denver Highlands, and help you with buying real estate in Washington Park. Contact us for a no-obligation consultation and our trusted professionals will be there to help you every step of the way!

Thinking of selling your Denver home?

Get an accurate Denver Home Value estimate.

Search all metro Denver real estate for sale.

Until next time,

Marianne Bandy, Team Leader

The Bandy Team

 Keller Williams Park Meadows

BandyTeam.com - Denver Real Estate & Homes 

720-466-3790

Tallyn’s Reach – Resort Style Living in Aurora, CO

If you are looking for a home that has a country feel, privacy, and great mountain views with the convenience of city living then consider the community of Tallyn’s Reach located in Southeast Aurora, CO.

You can see here a six-lane swimming pool with an interactive water park for children that offers a resort-like setting for you to cool off on a hot summer’s day. The Homestead is the community’s meeting place. Located on one of the highest points in the area and built in a craftsman style, you’ll find this to be the place to entertain friends, host a wedding or plan the perfect surprise birthday party.

Homestead Park is also the place to be if you enjoy the outdoors. The 10-acre park provides residents with many amenities such as tennis courts, walking trails, six-lane swimming pool, children’s water park, and gazebos perfect for a picnic. The numerous amenities provided here truly provide residents with resort style living.

Children in Tallyn’s Reach attend nationally acclaimed Cherry Creek School District. Test scores for the district rank near the top in math, writing, and reading, and are well above both state and national averages.  Within a 25-minute drive you have access to private schools, and in under an hour drive you have access to several top-notch colleges and universities.

Homes in Tallyn’s Reach are built by some of the best builders in the state offering superior craftsmanship and architecture. Home prices range from $400,000 to $1.5 million and are located close to Southlands Town Center, Cherokee Trail high school, and provide you with easy access to the E-470 toll way. Whether you are looking for your first home, or are ready to move up to the home you have always dreamed of, Tallyn’s Reach is the community for you.

Are you ready to get started finding your dream home in Tallyn’s Reach? The Bandy Team can show you available properties and everything this community has to offer. The Bandy Team professionals will guide you through all phases of the home buying and home selling process in the Denver area as well as the different communities in Aurora. Whether it’s Saddle Rock Real Estate, or a wide variety of lovely homes in Heritage Eagle Bend, our trusted professionals will be there to help you every step of the way!

Thinking of selling your home?

Get a custom estimate of your Denver Home Value.

Search all metro Denver real estate for sale. 

Until next time,

Marianne Bandy, Team Leader

The Bandy Team

 Keller Williams Park Meadows

BandyTeam.com - Denver Real Estate & Homes 

720-466-3790

Why You Should Use a Real Estate Agent to Sell Your Denver Home

With improvements in the housing market, now may be a good time to consider selling your home. Your reasons for selling may include the need to relocate to a different area, the desire to upgrade from a starter home, or to save yourself time and maintenance costs by downgrading to a smaller home that better suits your needs. While many people consider selling their homes themselves to save money, having an experienced real estate agent handle the transaction can not only save you time and money, but could also protect you against legal liability that can arise during and after the sale.

The Advantages of Using A Real Estate Agent

While some homeowners today think they can save money by selling their home themselves, choosing to list your house as ‘for sale by owner’ or FSBO can actually cost you money in the long run. According to Realty Today, the advantages of using a real estate agent to list, show, and sell your home include the following:

• When it comes to setting a price for your home, your real estate agent can provide expert advice on getting the maximum amount for your property that the market will bear.
• A real estate agent understands the market, and can provide realistic advice on the features most sought after by buyers, as well as instruct you on upgrades that could increase your home’s value or help it sell faster.
• Marketing a home to buyers is not as easy as it looks, and a real estate agent knows the most successful methods for appealing to buyers.
• One of the keys to selling a home for the most money is creating lots of showings, something most homeowners do not have the time or energy to do.
• A professional real estate agent is much more experienced in negotiating the sales contracts of homes because they do it all the time. That fact, coupled with the ability to generate more offers, means you will most likely get a higher net amount of funds after the sale. And the sellers’ net proceeds are what matter most.
• Having a real estate agent list your home for sale means that all showings will be initiated by other real estate agents representing the buyer, thus helping to ensure that any interested buyers touring your home have both the intention and financial ability to actually go through with the sale.

Legal Liability When Selling Your Home

In addition to the benefits offered by a real estate agent in listing, showing, and helping to sell your home, having an experienced agent on your side can protect you against any potential legal liability that could arise. A US News and World Report article on the dangers of selling your home yourself states that there are numerous liability issues that can arise for a home owner who chooses to forego having a real estate agent handle their sale. Examples of these types of issues include the following:

• Improperly worded contracts that leave sellers open to liability for repairs to the home.
• Non-disclosure issues pertaining to problems that exist within the home, such as mold or pests.
• Claims of discriminatory practices from prospective homebuyers.
• Liability for personal injuries suffered by those viewing the property.

All of the above situations can be prevented by having an experienced real estate agent handle your sale. Your agent understands the liability you face when opening your property to the general public, and can advise you in ways to limit injuries or claims of unfair practices. In the event of a sale, they can ensure that all legal documents and contracts are properly worded to protect you against any future liability that could arise from structural or repair issues the buyer ends up facing. Before taking on the risks of selling your home yourself, contact an experienced  Denver real estate lawyer  first to ensure your interests are protected, and who can also help you with any questions you may have.

These are just few of the reasons why you should use a Real Estate agent to sell your Denver home. If you have any questions, feel free to contact your local Denver area real estate professionals, the Bandy Team! Let us guide you through all phases of the home buying and home selling process in Denver. Whether you’re searching for Parker Real Estate, Homes for Sale in Aurora or any of the other fine communities surrounding Denver. We are here to help you find your dream home. We will be there to help you every step of the way!

Thinking of selling your Denver home?

Get an accurate Denver Home Value estimate.

Search all metro Denver real estate for sale.

Until next time,

Marianne Bandy, Team Leader

 The Bandy Team

Keller Williams Park Meadows

BandyTeam.com - Denver Real Estate & Homes

720-466-3790

How To Handle A Low Appraisal on Your Denver Home

When you and your Realtor wrote your purchase offer for a home, you most likely made your offer contingent on several items, including financing, a home inspection and an appraisal. If your loan is locked in and your prospective home passed its inspection with ease, then you’ve only got one challenge left: the appraisal.

Mortgage lenders require an appraisal on your home before they’ll provide a loan for the simple reason that the property is the underlying asset that serves as collateral for the loan. If for some reason you run into financial difficulties and lose your home to foreclosure, your lender would need to sell the property to repay the loan. A lender will only approve a loan for a property that appraises for the full sales price of the home or more.

Appraisals are a touchy subject for many real estate professionals. There’s no question there have been more complaints about appraisals coming in too low during the years since the housing crisis. A couple of years ago appraisers were contending with few recent sales to compare, along with the issue of how to handle distressed sales. Now that home prices are rising again it can also be tough for an appraiser to measure just how high values have reached. Compounding the problem, new appraisal rules introduced a few years ago mean that some appraisers are working in communities where they’re unfamiliar with things that add to a home’s value, such as the school district, proximity to amenities or other factors.

All of that plus the momentum of a rising market explains why it’s possible that an appraisal could be lower than the price you offered the seller. The way you and the seller and your lender handle a low appraisal depends a lot on the purchase agreement you both signed.

Options After a Low Appraisal

Your contract and your Realtor can guide you to decide how to handle a low appraisal. Your choices include:

1. If your contract has an appraisal contingency, you can cancel your offer and have your deposit returned.
2. If you still want to buy the home and believe the amount you offered is reasonable, you can make up the difference in cash. The lender cares about the appraisal only to the extent it affects the loan-to-value ratio. A low appraisal does not mean the lender won't lend. It means the lender will make a loan based on the ratio agreed to in the contract at the appraised value.
3. If the seller agrees, you can renegotiate the contract. Some sellers won’t negotiate, but others are willing to drop the price or even to provide their own financing for the difference between the contract price and the loan amount.
4. If you strongly believe the appraiser has made a mistake in estimating the home’s value, you can pay for a second appraisal (not true for HOA Loans). However, there’s no guarantee that the second appraisal will be any higher.
5. You can also challenge the appraisal by having your agent supply a list of comparable sales. Ask the agents involved to put together a list of recent comparable sales that justify the agreed-to sales price. Have your agent submit that list and ask for a review of the appraisal. Also, ask the agents to call the listing agents of pending sales to try to find out the actual sales price of those properties.

Before you commit to buying a house for more than its appraised value, consult with your Realtor and think carefully about the risk you incur by purchasing a property with less equity than expected. If the appraiser is correct, it could take longer than you think to build equity in your new home.

Let the Bandy Team guide you through all phases of the home buying and home selling process in Denver whether you’re searching for a home in the Lowry area of Denver, real estate in Cherry Creek, or any of the other fine communities surrounding Denver.  We are here to help you find your dream home. We will be there to help you every step of the way!

Thinking of selling your Denver home?
Get an accurate Denver Home Value estimate.

Search all metro Denver real estate for sale.

Until next time,

Marianne Bandy, Team Leader

The Bandy Team

 Keller Williams Park Meadows

BandyTeam.com - Denver Real Estate & Homes 

720-466-3790

Five Great Reasons to Buy a Home in Aurora, CO

Just minutes away from Denver International Airport, Aurora is home to a vibrant business environment, including major industries such as aerospace and defense, renewable energy, bioscience, health care, transportation and logistics.

Aurora is Colorado's third largest city with a diverse population of more than 351,000. From agricultural outpost to military bastion, Aurora has established its foundation as a driving force in the west. Tree-lined streets, open prairie, majestic views of the mountains and ample neighborhood parks make many Aurora neighborhoods a comfortable place to call home. Aurora is also Colorado's safest large city.

Check out our list of reasons why it's great to buy an Aurora, CO home.

1. Low mortgage rates serve as an equity shock absorber. When buyers borrow at today's record-low rates, they start building equity as soon as they close. That means they can absorb a few ups and downs in the housing market.
2. Most houses are in move-in condition. Homeowners have continued to spend on maintenance and repair, according to the Harvard Joint Center on Housing. As these houses enter the market, they are in marked contrast to tattered foreclosures.
3. Terrific Aurora houses are coming on the market. Foreclosures have mostly cleared the system and they are being replaced by some very attractive properties.
4. Appraisal regulations are finally aligned with market realities. Fannie Mae has adjusted its appraisal guidelines, giving appraisers more flexibility to set values that reflect the current market.
5. Plenty of programs. Many programs that encourage middle-class families to buy homes continue to exist. Buyers who qualify can get a big boost by combining one of these programs with today's low mortgage rates.

Not only does Aurora provide access to quality education, the municipal strategic comprehensive plan emphasizes the formation of livable, full-service neighborhoods.

Are you ready to get started finding your dream home in Aurora? At Bandy Homes, we will guide you through all phases of the home buying and home selling process in Denver and surrounding communities in Aurora. Whether it’s Saddle Rock Real Estate, or a wide variety of lovely homes in Heritage Eagle Bend. Our trusted professionals will be there to help you every step of the way!

Curious about the value of your Denver home?

Get an accurate estimated Denver Home Value.

Search all metro Denver real estate for sale.

Until next time,

Marianne Bandy, Team Leader

The Bandy Team

 Keller Williams Park Meadows

BandyTeam.com - Denver Real Estate & Homes 

720-466-3790

3 Value Boosters for Your Denver Home

When selling your Denver home, one of the first things you need to do is to get a property valuation. This figure will be central to determining what price point you list your home as well as a guideline when negotiating the sale. Some things like fixing a roof won't reflect in a higher price, as these are considered standard up keep on any house and therefore not a reason that a new owner should pay more to own it. However, there are several solutions that you can employ that will not only raise the desirability of the home, but your asking price as well.

Create Space: Older houses tend to have more rooms than modern designs. Not because they are bigger, but because of the outdated design philosophy regarding a larger number of smaller rooms. Today, smaller families mean there is less of a need for more rooms, and the emphasis has shifted to larger areas that can flow into each other. What this means for the remodeler is a need to create space. Knocking down non-supporting walls and opening rooms into each other can be a great way to bring an older house into the 21st century, while retaining much of its charm and aesthetical appeal. For a very reasonable price, you can see big returns when the time comes that you decide to sell.

Landscape: The first impression anyone will have is approaching the home from the outside. Keeping bushes, trees, and other large plants pruned can keep your sight lines pleasant and clean, and brighten interior natural lighting. Unkempt growth can also promote the growth of mold, something that can damage the house over long periods of time.  A recent study of real estate brokers conducted by Home Gain found that a $100-$500 investment in landscaping can net a return of up to four times that amount.

Brighter Lighting: One of the biggest enhancers of a homes' appeal is how well lit the home appears to be. Natural lighting plays a big part here, and adding windows, skylights, and sun tubes (aka sun scoops, tubular skylights, and light pipes) can dramatically liven up a dark and dismal space. Brighter bulbs, armed with dimmer switches, can help add to this effect, and also allows you to create the mood that you need. Remember that brighter lighting makes a small area appear larger, and can create a much warmer and inviting atmosphere.

Be sure to make these improvements before the house goes on the market. Showing the property before these improvements are finished is likely a waste of time. Anyone who sees the house early will likely be a throwaway lead that might otherwise have been interested in the finished product. Be patient, and make sure that you only provide the best impression you can when selling your Denver home.

Let the Bandy team show you other ways to prepare your home and sell it quickly! Let our experienced professionals guide you through all phases of the home buying and home selling process in Denver. We can also help you with home staging tips to help you get started. Our home purchasing experts can also help with buying real estate in Washington Park, homes for sale in Cherry Creek, or lovely homes in Lowry. Contact us for a no-obligation consultation and our trusted professionals will be there to help you every step of the way!

Curious about the value of your Denver home?
Get an accurate estimated Denver Home Value.

Search all metro Denver real estate for sale.

Until next time,

Marianne Bandy, Team Leader

The Bandy Team

 Keller Williams Park Meadows

BandyTeam.com - Denver Real Estate & Homes 

720-466-3790

Value of Using A Buyer’s Agent When Looking for A Denver Home

So you have decided to purchase a Denver home and you might be wondering if it is necessary to use a buyer’s agent (a real estate agent who will represent you as the buyer). There are always discussions that buyer’s agents aren’t necessary, and technically, a buyer could purchase a home without one. However, it is a fact that there is no better value than the services provided by a buyer’s agent. Here is the list of our top 4 reasons you should use a buyer’s agent to purchase your home - and keep in mind that these services are provided at no cost to you!

Representation

This is the number one reason to use a buyer’s agent. You need a professional to represent you and your interests in important negotiations for your home. Real Estate is often complicated, and when you’re making what is likely the largest financial commitment of your life, you want representation by a skilled and experienced real estate agent.  Also, your buyer’s agent will be able to warn you about legal implications of backing out of a contract, situations when you could lose your earnest money deposit, or what you can do when a builder doesn’t deliver a finished home within the stated timeframe or per the contract (among other things).  Without a buyer’s agent, you’re on your own with all of those matters. That is the problem when working with a listing agent directly when buying a home. By law, the listing agent cannot act as your advisor, they must maintain a neutral position, or what is called a Transaction Broker status. You need someone in your corner looking out for your interests.

Knowledge

Market knowledge is one of the most difficult things to acquire as an agent, simply because it takes so much time.  A good buyer’s agent will know which neighborhoods appreciate the best, neighborhood issues such as expansive soil, which builders are the highest quality, and resources for you to check what parts of town have the lowest crime rates, and which schools are top notch.  They will also know the sales history of any given property, which can benefit you when you’re negotiating a price.

Time

It takes considerable time to search the market, drive through neighborhoods, and to preview homes. Even with technology and the information readily available on the Internet, the time required for finding that “perfect home” and completing the transaction process smoothly is substantial.  You presumably have another job, so lean on the experience of your buyer’s agent, whose job is to put in the time for you.

Savings

A buyer’s agent will spend hours behind the scenes doing market research on the value of the homes you’re interested in and will share the documented results with you in order to help you find the best deal.  Because the buyer’s agent does not represent the seller, they can advise you about how close any particular home matches what you are looking for, including the price as it compares to fair market value. Your buyer agent wants you to be happy, and they want you to get a good deal so you will refer all of your family and friends to them and use them again when you buy or sell a home in the future.

These are just a few of the top reasons you’ll need a buyer’s agent.  If you have any questions, feel free to contact your local Denver area real estate professionals, the Bandy Team!  Let us guide you through all phases of the home buying and home selling process in Denver whether you’re searching for a home in the Lowry area of Denver, variety of lovely real estate in Cherry Creek, or any of the other fine communities surrounding Denver.  We are here to help you find your dream home. We will be there to help you every step of the way!

Curious about the value of your Denver home?
Get a quick estimated Denver Home Value.

Search all metro Denver homes for sale.

Until next time,

Marianne Bandy, Team Leader

The Bandy Team

Keller Williams Park Meadows

BandyTeam.com - Denver Real Estate & Homes 

720-466-3790

A Denver Homeowner's Net Worth is 45x Greater Than a Renter’s!

Homeowner equity is a substantial component of a homeowner’s wealth. The Federal Reserve’s Survey of Consumer Finances, conducted once every three years, collects data across all economic and social groups. It provides a snapshot of family income and net worth along with basic demographic details and more detailed information on where families keep the wealth they have accumulated.

Based on the latest survey that includes data from 2010-2013, reports that a homeowner’s net worth is 36 times greater than that of a renter ($194,500 vs. $5,400). As cited in a Forbes article, The National Association of Realtors’ (NAR) Chief Economist Lawrence Yun predicts that in 2016, the net worth gap will widen even further to 45 times greater.

This huge gap in net worth is due to the fact that every time a homeowner pays their mortgage, they are contributing to their own net worth. Conversely, every time a renter pays their rent, they are contributing to the net worth of their landlord.  Lawrence Yun also said that though there will always be discussions about whether to buy or rent, the reality is that homeowners steadily build wealth and generally do come out ahead of renters in the long run.

In the past 15 years, the net worth of the typical homeowner has ranged between 31 and 46 times that of the net worth of the typical renter. A vast majority of homebuyers take out a 30-year fixed rate mortgage to make a home purchase. After 30 years, there is no mortgage payment (nor rent payment). So the home price growth over that time period would be the equity that the homebuyer would have accumulated.

Thinking of owning a home? Let the Bandy team help you with all your real estate needs! We will guide you through all phases of the home buying and home selling process in Denver.  Our home purchasing experts can show you lovely homes in Stapleton, homes for sale in Denver Highlands, and help you with buying homes in other Denver areas such as real estate in Elizabeth. Contact us for a no-obligation consultation and our trusted professionals will be there to help you every step of the way!

Curious about the value of your Denver home?
Get a quick estimated Denver Home Value.

Search all metro Denver homes for sale.

Until next time,

Marianne Bandy, Team Leader

The Bandy Team

 Keller Williams Park Meadows

BandyTeam.com - Denver Real Estate & Homes 

720-466-3790