Why Stage Your Home In A HOT Seller's Market?

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If inventory is low and homes are flying off the market, you might wonder why your listing agent still recommends that you stage your home? No matter how hot the market is, Buyers will always compete and pay more for the best homes. Attracting more buyers, means more offers, which means more money, in any market. Bottom line, home staging plays a pivotal role in just how many offers you will receive and ultimately, how high that bidding war will go!

01. A Staged Room is More Attractive In Photographs

Most Buyer’s first impression and interaction of your home is likely to be online where they’ll look at photographs and decide whether or not to view your home in person. The more attractive the photos are, the more Buyers will be enticed to schedule a showing.

This is especially important when listing a vacant home that may not have any or very little furniture. Without staging, the Buyer is scrolling through a bunch of pictures of blank walls. The pictures tend to look bland and boring, leaving Buyers with little inspiration or excitement. On the other hand, a staged room can appear more warm and inviting. The staging can help Buyers envision the home’s potential.

02. Buyers Want Move-in Ready Homes

The pandemic has left labor and materials in short supply. Finding a contractor, handyman or any skilled tradesman, to do a kitchen remodel or even a small job, can be challenging because they are booked out for months. Homeowners are also experiencing delays in getting materials, or finding enough materials as production may have been halted or a manufacturer has gone out of business. The scarcity continues to increase the cost of both materials and labor for any renovation project.

Even those with the resources, do not like the idea of living through a renovation. As we all spend more time living and working from home, any renovation projects would seem to be intrusive and a major inconvenience. That’s why a home that requires little to no updating is on the top of many Buyers’ lists right now.

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03. Staging Conveys Home Is Well Maintained & Higher Quality

While having the right furniture pieces and accessorizing is a big part of staging, there are other details that must be addressed. The home should be cleaned, decluttered, lights working, walls cleaned (a fresh coat of paint is one of your best ROIs in staging), everything in working order, all your “honey-do” items taken care of, etc. It’s the accumulation of these details that can elevate a home’s worth exponentially in the Buyer’s mind. It sends the message that the Seller have taken care of the home and have pride it by showing it at its best. It’s also the Buyer’s first glimpse into how good (or bad) the inspection will go.

04. Staged Rooms Look Larger & More Functional

To a Buyer, a room with furniture in it, always looks larger than a room without furniture. Part of this is because they have no reference point to gage, for example, how big a king or queen bed actually is in length and width. Therefore, they cannot mental compare how their bed would fit in the space. Staged with a bed and side tables, a Buyer will have an idea if their bed is larger or smaller than the staged bed or any furniture for that matter.

Staging can also help bring purpose to small rooms or awkward spaces. Giving Buyers a visual of what they can do with the space, will increase their value perception of the home.

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05. Staging Expenses Are Tax Deductible

The IRS considers hiring a professional stager to style and furnish your property to enhance its attractiveness to potential buyers a selling expense that can be deducted from your capital gains. Other selling expenses include legal fees, title fees, and even real estate agent commissions can also be deducted. Be sure to consult your CPA as there are some grey areas when it comes to selling expenses that are deductible.

06. A Staged Home Sells For Money

A staged home will make you more money. Do you really need a better reason? It’s because of reasons 1-5, that Buyers are simply willing to pay more when they can see a home’s potential. Professionally staging your home isn’t cheap, but it’s one of the highest ROIs when it comes to preparing your home for sale. According to the National Association of Realtors, agents reported that staging increased the financial offer on a home by 5% - 20%. Being strategic in which rooms to stage and how to stage them is key for the highest return.

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Every home can benefit from some level of staging. It may be using the furniture and accessories you already have or adding in/taking away a few pieces here and there, or hiring a professional to bring in all the right pieces. Preparing your home for sale is one of the most important steps in the home selling process. It should not be overlooked and requires someone with an objective, detailed eye. I put many hours working with my clients to ensure their home stands out and is picture perfect to attract the highest possible sale price!

Denver Real Estate Market on Fire, Breaking Records Amid the Pandemic

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Would you pay $750,000 for this home? Never mind. In the time it just took you to think about that, this home already has 30 showings, 15 offers, and is under contract at $50,000 over asking, with no inspection and an appraisal waiver.

Hi, I'm your Realtor Milena Joy. While that home is not actually for sale in Denver, the story made up around it is very much a reality for what's happening in the Denver metro real estate market. Buyer demand continues to be high, as interest rates have hit historic lows, inventory is at an all-time low, and the medium price point for both single family homes and condos are at a record high. It continues to be a hot seller's market, even amid the pandemic, and in some ways, because of it.

Here's what's happening. With more people working from home and many kids still homeschooling, buyers, including those from feeder markets like Chicago, Dallas, New York and Seattle, are seeking larger homes with dedicated home offices and more outdoor space. These out-of-state buyers are coming in, many of them with cash, and scooping up inventory as our rising prices still pale in comparison to the markets they're leaving. The allure of the Colorado outdoor lifestyle, our ranking as the number two best place to live, many of our counties reigning among the healthiest, and DIA being ranked among the top international airport hubs, we continue to attract businesses and buyers across the country, and around the world.

So here's what you need to know if you're looking to sell or buy in this competitive market. Sellers, while it certainly is a seller's market, overpricing your home in this market can be detrimental. Even though home prices continue to trend up, buyers can't help but wonder if they're buying at the peak. So when a home appears to be even slightly overpriced, it ends up sitting on the market. And with 21 being the average days on market, you can see how quickly days on market can create a negative stigma, resulting in a downward spiral of price reductions and lowball offers. It's important that the price conveys value and attracts the largest pool of qualified buyers.

My affiliation with Sotheby's International Realty also means that my listings get exposed to national and international buyers, which is extremely important as more people continue to move to Colorado. More exposure means more buyers, more offers, more competition, and ultimately higher prices and better terms for the seller. Move-in ready homes are also in high demand. With so many people renovating their homes during the pandemic, contractors are booked out for months, making homes that need little or no repair, or updating, more appealing. I put a lot of time into helping sellers prepare your home for sale, to ensure it shows its best, both online and in person.

Now buyers, while increasing home prices aren't in your favor, the drop in interest rate has helped offset the annual appreciation of a home, which equates to more purchasing power. In fact, the payment on the average priced home for a 30 year fixed loan with 10% down, is up just 4% for detached homes, and is actually down 0.4% for attached homes. So if you're someone who needs to sell and buy, now would be the right time to do it, so you can maximize your sales price, and buy at a low interest rate.

Timing is everything for buyers. Working with an agent that's available to show you homes as soon as they pop up on the market is crucial. Don't wait until Sunday to see a home that's listed on Thursday. Sometimes just being the first offer in can give you an advantage, because that offer sits in front of the sellers, so they become more comfortable with it. It can also potentially scare off other buyers that did not want to get into a bidding war. Writing a competitive offer goes beyond price, it means being prepared, knowing my buyers can offer in terms of dates and deadlines, earnest money and inspection, and appraisal terms, allows me to act quickly to turn around an offer that creatively packages those terms into a winning offer.

This is just a snapshot of what's happening in the Denver metro real estate market. If you want more detail on what the current market means for you, give me a call at 303-585-0589, or go to my website at milenajoy.com. I would love to sit down with you and give you a clear understanding of your real estate options in 2020.

I want to be your real estate resource. In the meantime, please follow me on Instagram at @milenajoy Facebook at Milena Joy Real Estate. I look forward to hearing from you. I'm your realtor, Milena Joy. I know changing where you live, can change how you live.

Denver Real Estate - April Showers Bring May Flowers

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When it comes to Denver metro real estate it looks like April showers really do bring May flowers. While we were all forced to stay inside our homes, we were unable to do showings during most of April. Yet we still managed to weather the storm putting more than 3,000 homes under contract and listing over 45 properties in the month of April. And when the restrictions on showings were lifted on April 27th, approximately 3,500 showings which no doubt stemmed from pent up demand were scheduled that day. That's more than any other Monday in 2020. Going into May, the Denver real estate market seems to be blooming with opportunity.

We're still in a seller's market in all price ranges except the luxury market. Inventory remains low with just 6,800 active homes on the market, at the start of May. We have less than three months of inventory in all price segments, under a million. In fact, detached homes priced $300,000 to $399,000, there was less than a month of inventory. For reference, we would need closer to six months of inventory to consider it a balanced market. In all segments under a million, homes are closing at 99% or better of list price, and even experiencing multiple offers in some segments.

Things look a little bit different in the luxury market, where nine months of inventory is considered a balanced market. We're hovering just over seven months of inventory for attached homes and six months for detached. Buyers in this price range have more options and ultimately more negotiating power.

Overall Denver real estate is holding its value. Our year-over-year price appreciation, as measured through the median sales price, shows gains and median close price of six and a quarter percent in February, six and three quarters in March, and six and a 10th in April. In March we hit a record average sale price of approximately $512,000 and in April, that number dipped just slightly to $503,000. Continued lack of inventory with strong demand is expected to maintain this positive appreciation. As always, homes that are priced right and staged well are moving the fastest.

While COVID still remains top of mind for both buyers and sellers, buyers are motivated by low interest rates which hit a historic low of 3.2% on April 30th. Keep in mind lenders are tightening lending requirements especially jumbo loans, so getting a pre-approved is even more important.

For your protection while we're showing homes we're operating with masks, gloves, and a lot of sanitizer. We're also utilizing virtual tours, videos and online media to minimize contact and get your property in front of buyers.

This is just a snapshot of what's happening in the Denver real estate market. If you want more detail on what the current market means for you, give me a call at (303) 585-0589, or go to my website at milenajoy.com. In the meantime, don't forget to follow me on Instagram at @milenajoy and Facebook at Milena Joy Real Estate. Thank you for listening. I'm your realtor, Milena Joy. I know, Changing where you live, can change how you live.

2020 Vision in Real Estate - Insight for Buyer & Sellers

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I hope everyone’s had a great start to the New Year. I can tell you I’m beyond excited for the year ahead, especially when it comes to real estate. So here’s my vision and what you need to know if you’re thinking about buying and or selling in 2020.

February through June is the high selling season here in Denver metro, where we generally see inventory and sales increase over that time. As you near June, demand begins to taper off and prices begin to fall back July through January.

Sellers looking to maximize their sales price will want to get their home prepared for sale now and get it on the market within the next month or two to take advantage of low inventory and less competition. I emphasize preparing your home for sale, because as prices increase, buyers are having to take out bigger mortgages and therefore have less money left over to make repairs or renovations. Additionally, the increased costs of supplies and shortage of labor makes it even more difficult, increasing the demand for move-in ready homes. Buyers are being more discerning about the condition of the home and making more demands when it comes to the inspection.  

I would encourage Buyers to take advantage of over-priced and old inventory. Seller’s that listed last fall and are still on the market will be anxious to sell before competing with new spring inventory. And we are still seeing inflated pricing that often results in price reductions, so don’t let the list price keep you from negotiating.

Interest rates remain low. While we don’t expect them to move up anytime soon, they are not in our control, so it’s best for buyers to take advantage now, especially as we face affordability issues as prices continue to rise for the 8th consecutive year here in Denver metro.

Although I don’t have a crystal ball, It looks like 2020 will continue that trend as we head into spring. Right now, it looks like the only major factors that may disrupt that trend are an increase in interest rates and severe weather, that could hinder sales.

It’s also important to take note that its an election year, which can cause some economic uncertainty with both buyers and sellers. History suggests, however, that the slowdown is largely concentrated around the month of November. I look at it as  just one more reason to get your house on the market and to buy early this spring.

Remember this is just a birds eye view of the Denver Real Estate Market, if you are considering buying or selling, it’s important to get a more detailed, personalized picture of what the real estate market means for you. Location, neighborhood, home type, and price point are just a few of the variables that affect supply and demand.

Give me a call, or go to my website at milenajoy.com. I would love to sit down with you and give you a clear understanding of your real estate options in 2020.

I want to be your real estate resource. In the meantime, please follow me on Instagram at @milenajoy Facebook at Milena Joy Real Estate. I look forward to hearing from you. I'm your realtor, Milena Joy. I know changing where you live, can change how you live.

WHO'S HAVING THE BEST YEAR IN REAL ESTATE?

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Want to know who just had the best month in real estate? Well, I'm going to tell you anyway. Buyers. Buyers are having the best month in real estate and it's not because it's a buyer's market, in fact, it's still very much a seller's market here in Denver Metro. But first, here's why buyers are having the best month in real estate. Negotiating power.

Buyers are negotiating everything from price, general contract terms, sales contingencies and inspection items. Particularly, buyers looking for condos between $750,000 to just under $1 million and buyers of single family homes priced over $1 million. We've seen an increase in inventory in both of these housing categories, both having slightly over six months of inventory, pushing them into more of a buyer's market. So, if you're looking for a home in these price points, you'll have more options and ultimately, more negotiating power.

Another indicator that buyers are having the best month ever, possibly since 2015, is in the year-to-date close-to-list price ratio, which fell just over 99% in September for all sales, after being consistently over 100% for the last four years. And to top it off, interest rates remain low, hovering in the mid to high three's, increasing buyers' purchasing power and enticing homeowners to leverage the equity in their current home to buy a second home or upgrade their lifestyle to a better home. You're probably wondering how can it still be a seller's market in Denver? Well, here's how. The average sale price in Denver Metro, went up by 6%. The sale of single family homes were just over 32% and condos sales were up by 120% from one year ago.

And yes, while inventory has increased by 25% to over 9,000 active listings at the end of September, that's just above the record low of approximately 7,500 in 2015 and still less than 50% of the September average of 16,500 and far below the record high of over 31,000 in 2006. There is still a huge buyer demand for homes in the $300,000 to just under $500,000 range and sellers in the $1 million plus luxury condo market are faring best of all with sales volumes up over 135% from last year.

So, what does this mean for you? Whether you're a buyer, a seller or both, it's important to have a hyperlocal viewpoint and understanding of the market. The numbers here, similar to what you might see referenced on social media or by local new organizations, come from the Denver Metro Real Estate Association, which includes stats from all 11 counties of the Denver Metro area, which is a lot. So, while these stats show what's happening on a large scale, what's happening in your city, your neighborhood, even your side of the street or within a particular building that you want to buy or sell, can be widely different than what's happening overall. Layer on factors like home type, price point and property features and benefits, and you have a much clearer picture of what the market looks like for you.

But, don't worry, you don't have to do all that. That's why I'm here, to be your real estate resource. Send me a message or give me a call at 303-585-0589 with your real estate questions or you can always go to my website at MilenaJoy.com where you can click on market trends reports and download the full detailed trends report every month. In the meantime, don't forget to follow me on Instagram @milenajoy Facebook at Milena Joy Real Estate. I look forward to hearing from you. I'm your realtor, Milena Joy. I know changing where you live, can change how you live.

JUNE REAL ESTATE MARKET UPDATE

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I have some great news for both Buyers and Sellers so be sure to read all the way through. If I could describe the real estate market in two words, I would say "Positive Balance". We've seen a positive increase in inventory, which is up 38% over May 2018.

This is giving Buyers more choices, more negotiating power, and ultimately more time. Buyers are taking a bit more time with days and market increasing slightly from 26 days on market last year to an average of 32 days this year. The results have been more negotiating, with the close-to-list price ratio dropping to 99.35%. This has created some much needed balance in the marketplace where for the last four years, Sellers were on average getting well over list price.

Now while Sellers are overall experiencing more price reductions, we're also still seeing a positive increase in appreciation up 2.38% from last year, with the average sold price being $534,577. And the median hitting an all time record of $450,000. With interest rates coming down, under contracts are also up 10 and a half percent over last year. Overall there's a lot more positive activity happening right now in the Denver real estate market, creating a bit more balance between Buyers and Sellers.

It's more important than ever for Sellers to work with a skilled Realtor to help them prepare their home for sale, maximize its marketing exposure and price it right to command top dollar. For Buyers, now is the time to take advantage of those windows of opportunity for low interest rates and more inventory as we head into summer.

Both Buyers and Sellers should keep in mind that these numbers and trends are a reflection of all 11 counties of the Denver Metro Area. When making a decision to buy or sell, you'll want to use very hyper-local data and trends which I'm always happy to put together for you. Just give me a call or a text, or go to my website at milenajoy.com. I want to be your real estate resource, so don't hesitate to reach out with your real estate questions.

I want to be your real estate resource. In the meantime, please follow me on Instagram at @milenajoy and on Facebook at Milena Joy Real Estate. I look forward to hearing from you. I'm your realtor, Milena Joy. I know changing where you live, can change how you live.

Shocked by Your Colorado Property Tax Assessment?

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If you're still in shock over your 2019 property tax assessment, don't worry, you're not alone. Single family residential property in Denver increased by a median of 20% with affordable neighborhoods like Villa Park increasing 43% and Globeville jumping 53% along with numerous reports of individual homeowners seeing increases of more than 70%.

The good news is that you still have a small window of time to protest your property value if you believe your assessment isn't in sync. You can protest your value online, in person, or in writing on or before June 3rd. Now, before you start writing that protest letter, it's important to understand a bit about how your taxes assessment is calculated and how I might be of service in helping you with your protest.

Real property is revalued every two years on odd-numbered years. Property tax calculations consist of several components including the property classification, in this case residential. The next component is the actual value of the property. The actual value of the subject property is based on an analysis of comparable sales. For tax years 2019 and 2020, the comparable properties must have sold between January 1st, 2017 and June 30th, 2018.

This is where I can be of real value to you as your realtor. I can evaluate the comparable properties included in your assessment to make sure there are a true representation of your home's market value, and if not, I can find comparable properties that will be a better reflection of your home's market value and thus support your protest.

It’s important to note that in 2017 and 2018, we saw double-digit growth in terms of appreciation in some neighborhoods. So, while that growth may mean higher property taxes, it can also means you've got more equity in your home. Now, if you disagree with the actual value or classification placed on your property, you may present oral or written objections to the assessor.

Protests for real property must be postmarked or delivered to the assessor on or before June 3rd. If you have any further questions, want a complimentary assessment of your home's actual value to support your protest or if you're just curious about what your home is worth, send me a direct message, or connect with me on my website at milenajoy.com.

I want to be your real estate resource. In the meantime, please follow me on Instagram at @milenajoy Facebook at Milena Joy Real Estate. I look forward to hearing from you. I'm your realtor, Milena Joy. I know changing where you live, can change how you live.