Hi, everyone and welcome to today’s edition of “Ask the Colorado Dream House Team”. I am Dan Polimino.Well, a lot going on in Denver, particularly Denver statistics. We’re going to get to that in just a second. Thanks for joining us. If you are new to the show, well then, welcome. This is every Tuesday and Thursday, around 4 PM Mountain Time, where we go live and we answer your questions about real estate.
Again, whether you are in California or Florida or Colorado, a lot of the information we give to you today, and every Tuesday and Thursday, can help you in your real estate needs, whether you’re buying, selling, or investing.
All right, let’s get to the Market Update. Some of the statistics have been released by the Denver Market Real Estate Trends Report. They call it DMAR, that’s easier to say. Basically, what we’re looking at for March is a lot like we’ve seen both in February and January, with a couple of differences.
First, there was a 50% increase in the amount of listings coming to the market in March than in February. Never have we seen a 50% increase in one month before. That was actually a new record high.
That’s the good news. The bad news is, as fast as they came on, they sold. DMAR is saying that, as of March 31st, there were 4,900 and a few homes on the market for sale. That would be up from February, which ended at 3,800. So, 3,800 to 4,900.
However, the statistics are a tad misleading and here’s why. Typically, a lot of listings come on the market on Friday. Since Friday was March the 31st, we know that a lot of those listings went on that Friday and got counted in the active inventory for March.
The reality is, is that those that went on, on Friday, were probably already sold on Monday. For all of you that are saying, “Yeah, I don’t see a lot more homes to choose from,” you’re probably right.
Here’s the other statistic you need to know from the March numbers. The average price of a home in Denver is now 468. Wow. Take a big gulp, because if you’re one of those people that are trying to buy a home for 350, 400, 425, you’re really feeling the pain. We’ve been talking about it here on this show. We feel your pain, as well.
We’ve got some solutions for you. Again, contact us at coloradodreamhouse.com or team@coloradodreamhouseteam or call the phone number on the screen and we’ll help you out.
Those are just a few of the numbers. If you want to know more information about the March statistics, again, contact us. We’ll pass along that info. Really, fast and furious, and I would expect very, very similar numbers coming up in April.
Let’s get to some of your questions.
Here’s the first one. “Dear Colorado Dream House Team, I heard that when you list a luxury home, you have to ‘vet’, or investigate, some of the people who want to see it or make an offer.”
That is 100% true. I never knew that when I got into luxury real estate that I would become Dick Tracy, but that’s exactly what has happened. We get a lot of people who contact us to see our beautiful luxury homes and we have to vet them and investigate them very carefully, because they’re frauds or they don’t have the money to purchase this home. Yet they still want to go in and see it and possibly make an offer.
You’re probably saying to yourself, “Why would they do that?” If I knew that answer, boy, it would save me a ton of time. I have absolutely no idea. I want to let you know that when we list your luxury home, we carefully, carefully vet each and every person that is interested in seeing it or possibly making an offer. All right?
“Dear Colorado Dream House Team, how many homes should I see before making an offer?”
That’s a loaded question. That’s like asking me which one is my favorite child. There’s no set rule here for how many homes you need to see before making an offer. It could be one, or it could be 50. In this market, you’re probably not going to have a chance to see 50 homes. However, remember what we always tell all of our clients. I call it the 85% rule. If you find a home that meets 85% of what you want and need, you’ve done really, really well, because there is no such thing as 100%.
If you’re out looking for a home that meets 100% of your criteria, don’t. It’s not going to happen. It doesn’t exist. There is no perfect home. In fact, I’ve had clients that have built their own home, spent 13 million dollars building a home in three years, and after it was all done, he rattled off 25 things he would have done differently. There is no perfect home. Even three years and 13 million dollars doesn’t buy you a perfect home. Okay?
Number three. “Dear Colorado Dream House Team, how do I know if a property is a good deal?”
Well, that’s where we come in. Hopefully, you have hired a real estate professional who has done a lot of transactions and can run the numbers for you and take a look at really good sales comparables in the neighborhood. Then there’s another thing about gathering the data and then deciphering the data. Based on what we present you and the data that we’ve found, you’ll know pretty quickly whether or not it’s a good deal. Here’s the other way you know. If you’ve been out at all, looking in that neighborhood for some time, and you’ve seen 10, 15, 13, 17 homes, you get an idea of what you can buy for the money. You’ll know pretty quickly whether or not a house is overpriced or if it’s a good deal. All right?
Last thing I want to leave you with today, don’t forget our buying guide, “How to Buy a Home in Colorado and How to Sell a Home in Colorado”. If you want an advance copy, email us at email@example.com or call us at the number. We’ll be happy to give you an advance copy. Again, they’re going to be available online very soon.
That’s it for this week. Happy house hunting this weekend. We look forward to talking to you next week