Currently, the real estate market in Colorado is favorable for real estate sellers. The Colorado Association of Realtors reports that home and condo sales in the state averaged a 3.7% premium over the listing price in 2022. This is a good indicator that the real estate market in Colorado is booming. Nonetheless, just because you put your house up for sale doesn’t mean you’ll instantly be able to sell it and make a fortune. However, by having the correct information and following the established process of selling a house, closing a sale this year is possible.
This article will serve as an in-depth guide that answers your questions and walks you through the eight essential steps in selling a house in Colorado.
Essential Steps in Selling a House in Colorado
1. Engage the services of a Colorado realtor.
Selling a property is not easy- it’s a high-stakes, intricate process that demands a lot of time and skill to complete successfully. When you sell your house in Colorado, you should hire a top-rated real estate agent to ensure you get the most money and the least stress during the selling process.
The most outstanding Colorado listing agents know exactly what local buyers want and how to contact them. They will provide advice, direction, and assistance from the time of listing to closure. In fact, the average amount a seller receives when working with an agent is 33% higher than the amount they would receive when selling on their own.
2. Determine when is the best time to sell a house.
Every market has its own rhythm and this is certainly true for the American real estate market. For example, home buyers in the northern half of the country tend not to look at properties when the temperature goes below zero and the snow piles up. Consequently, the winter months are typically the lowest for northern markets.
Putting your home on the market in April or June will get you the fastest possible sale. Properties listed during these months sell in 16 days, which is much less than the state average of 24 days when selling a house in Colorado.
3. Learn the basics of pricing your house to sell.
Setting the asking price is a crucial and time-consuming part of the selling process. Although it’s tempting to let your emotions guide you in setting the price, this often proves to be a mistake and there is a more rational way to determine an accurate asking price.
Using data from similar homes sold in your area, a Comprehensive Market Analysis (CMA) may determine your property’s accurate, market-based valuation. Research shows that the longer a house stays on the market, the less the chance of a sale, so setting the right price from the beginning is one of the crucial steps in selling a house.
4. Prepare to market and showcase your home.
It’s vital to make your house presentable to potential buyers before you put it on the market. Get rid of the mess and clean everything carefully. Give your furniture, finishes, and color scheme an honest evaluation to see whether they need to be updated.
You should also hire a professional photographer to take images of your house for the listing. Photos alone won’t get you very far; you also need a captivating, well-written listing description. Make sure to include the property’s standout features, such as a captivating view or luxurious granite countertops.
5. Take in bids and negotiating terms.
An offer might be accepted, declined, or countered. An offer in writing in Colorado typically has an acceptance period of one to three days. You can decline the offer in several ways: verbally, in writing, or through an agent. You can even provide a counteroffer to the potential buyer.
You have two to three days to submit the required paperwork after accepting an offer. The typical loan application process takes anywhere from 2-5 days, giving your buyer plenty of time to get everything in order.
6. Invest in home inspection and appraisals.
Assuming you’ve reached an agreement, the next step is to have your home appraised. A buyer who has already had their loan approved can still have it denied if their home’s appraisal comes in lower than the selling price.
Typically, a house appraisal is conducted by a qualified expert in the field. Home appraisals are used by lenders to qualify the security of a loan. A lender is more likely to loan money for purchasing real estate if the appraisal comes in at a value that is the same as, or higher than, the selling price.
7. Prepare the necessary paperwork and Colorado disclosures.
Remember that you are required by law to make specific disclosures when the time comes. If you fail to report any of the following, you may face penalties such as a fine or legal action.
Colorado, like most states, has its own set of mandatory disclosures. They include the land’s source of drinkable water, gas, and oil activity.
A home sale requires a great deal of documentation. While it’s a good idea to understand the documentation required to sell your house, you should consult your agent or attorney before signing anything.
8. Complete the closing process.
Finally, you’ve reached an agreement after many offers, counteroffers, inspections, appraisals, bargaining, and negotiating. Now all that’s left to do is close the deal.
Colorado’s closings are often conducted face-to-face at the office of the lender or title company. A final walkthrough with both parties present will be conducted to ensure the property is in the same condition as it was during the appraisal.
During the closing, the buyer will present a cashier’s check in the amount of the purchase price plus closing charges, and the seller will then hand over the keys. Each party will sign the necessary paperwork, and then the attorney or title company’s representative will file the necessary paperwork with the local government.
Key Takeaway
If you’re considering selling your Colorado home in the next six to twelve months, now is the time to start looking for an agent, getting expert advice, and making a plan. To successfully close a deal this year, you must be familiar with the basic procedures and steps in selling a house in Colorado.
Learn the ropes of selling your home with Cedar Home Loans.
Selling your house in Colorado is more complicated than you think. However, you can rest assured that Cedar Home Loans, a reliable Eagle home loans company, will provide you with the information and help you accomplish each of these steps in selling a house. Our years in the business can attest to our expertise and knowledge. You may trust that you’re in safe hands with us. Call us now!
