Renters are Leaving Colorado

Renters are Leaving Colorado

Dan Polimino gives insight on a spike in renters leaving Colorado, what buyers are looking for before making an offer, and why you should list your home for sale right after Labor Day.

Why are renters leaving?

  • 34% of renters are leaving Colorado for a job
  • About 30% are leaving because affordability is at an all-time low.

What are buyers looking for?

  • Location
  • Layout and finishes
  • Price relative to the location and layout

When is the second selling season?

The second selling season is approaching fast. We recommend listing your home right after Labor Day to create buyer competition during the second selling season. You can find out more by reading the 5 things to know before the second selling season

Full Transcript

This week’s edition of Ask the Colorado Dream House Team. I’m Dan Polimino, your host, coming from Denver, Colorado. Happy Thursday to you. I hope it’s beautiful where you’re at and Denver is sunny and in the eighties so we’ve been really, really happy with the weather that we’ve had here lately. Again, if you’re new to the show, what’s this all about? We’re talking about real estate.

Wherever you are, whether you’re in Denver, whether you’re in Utah, it doesn’t matter. All of the information that we’re giving you is good real estate data-based driven information. You can use it wherever you are and it comes from years and years and thousands of transactions worth of experience so take it and run. Remember when you are participating in the show, you can obviously leave comments here or you can contact us at coloradodreamhouse.com, team@coloradodreamhouse.com, or 720-446-6325. We’d love to hear your comments.

Two things we always try to accomplish in the show, we want to give you some market information as well as we want to answer your questions. Here’s some market information. Renters are actually leaving the state of Colorado. Why are they leaving? According to a recent survey, they’re finding a couple of issues. The first issue that they leave for first and foremost, 34% are leaving because of a job. A job in another city, a better job, a better opportunity. We see that in most cities. That’s not unusual. That’s pretty normal.

In fact, the second reason why they’re leaving, and this is where it comes in as part of the problem, is about 30% are leaving the state of Colorado because affordability. You hear me talk a lot about that on this show. Affordability is at an all-time low. Prices for a single family home are pushing $450,000 and that’s an entry-level home and more and more young people are finding it harder to buy a home in Colorado. Where are they heading?

They’re heading primarily to three cities that we can point to. Chicago, Dallas, and Phoenix and the reason they’re heading to those three cities is because the jobs are plentiful and the economies are doing well but more importantly, the cost of housing and the cost of living is considerably lower in those areas. To buy a really a single family home in Arizona, depending upon where you are, you can be in the same size home in Arizona for about $280,000 as you would be in Denver at $450,000. That’s kind of why some renters are leaving. Just thought you’d want to know. What we’re seeing is a cycle of about every five years. People are coming and going here about every five years. It’s turning out to be a rather transient city and a transient community.

What does that mean for real estate? That means that the real estate market, whether you’re renting or selling, should stay rather robust in and around Denver. If you’re in my position, it’s job security. One other thing. We did this show on Tuesday and we talked about getting your house ready in time to have it on the market right after Labor Day and a lot of people have responded. We’ve heard from a lot of people that said, “Hey, we’d like to meet with you and talk about that process. See what our home is worth and then talk about what it looks like getting it on after Labor Day.” Thank you for those calls and again, please continue to call us at 720-446-6325 and we’ll walk you thorough the whole process, soup to nuts. Who knows? You may sell your house for top dollar and be in a brand new house all before the holidays.

All right. Let’s get to your questions. “Dear Colorado Dream House Team. We have a realtor that will list our house for 1% but I’m skeptical about the service and really getting our house sold for the top dollar. What should I do?” I think you know my answer to this, right? Which is simply … It’s like what our daddy used to tell us. You get what you pay for. You should be skeptical about 1% because a realtor coming in and charging you 1% to sell your home means they’re probably going to what I call the three Ps.

They’re going to put your property in the MLS. They’re going to put a sign in the yard and then they’re going to pray. I would suggest that if you’re paying 1% for the three Ps, you’re probably paying too much. Instead, why don’t you go with a full service realtor or team, like ours, that provides a lot of marketing and a lot of service and a lot of support and go with somebody that has an excellent track record of getting top dollar in the shortest amount of time and if you’re thinking, “It’s going to cost me more. I’m going to pay more in commission.” I can tell you pointblank, the people that we’ve represented this year, what they’ve paid us in commission, we’ve more than made up for in price. We got them a higher price and they’ve way more than they would’ve going elsewhere.

“Dear Colorado Dream House Team. I’ve heard you say this before. There are three things buyers look for when considering making an offer. Can you remind me what those are again?” Yes. When a buyer walks into your home, there are three things they have to say to themselves. A, do I love the location. Location, location, location. It’s the first rule of real estate. Two, do I like the layout and finishes and then three, do I think it’s appropriately priced for both one and two. If they answer yes to all three of those questions, you’re getting an offer but if they answered no to even one of those, you’re not getting an offer. If they don’t like the layout but they like the other parts, they’re not going to make an offer. If anyone tells you it’s more than that, they’re probably not being truthful. It really just boils down to those three things. Those are the three questions a buyers asks themselves and answers before considering making an offer on your home.

“Dear Colorado Dream House Team. What areas of Denver do you specialize in?” That’s easy. We sell about a hundred homes a year and when you sell that many homes, we specialize all the way from Longmont down to Larkspur. We call it the two Ls. It’s the whole I-25 corridor from north to south. That covers areas up north like Broomfield and Westminster and Arvada and Northglenn. Everything down in the city of Denver and then the high-end marketing Cherry Hills and Greenwood Village and Castle Rock and Highlands Ranch. We’ve sold homes in just about every area and sub-area of Denver. Again, you can feel comfortable that we know what we’re doing. I hope that helps.

Don’t forget our 250 marketing guaranty. Remember what that is? If you’re thinking about selling your home, call the Colorado Dream House team, interview us, and let us do a presentation. Look at our marketing program and then interview our competition and if their marketing program is better than ours, you can hire them and we’ll pay you 250 bucks. No lie but we don’t think that’s gonna happen because we think our marketing program is so superior and better than everybody else’s that you’re going to select us. All right. Check it out on our website. coloradodreamhouse.com/250. That’s it for today. Everybody have a great weekend and we’ll see you again on Tuesday.

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