The Colorado property search and listing process is complex. However Your Equity Real Estate has put together an extensive list of common questions and answers. We understand we cannot answer all the questions here, so if you don't see your answer, give us a shout and we'll be happy to shed some light!
When either selling or buying Colorado property, it is important to have a real estate agent to ensure accuracy of your property value. Agents assist in listing your home, but more importantly making it more visible to the market of prospective buyers. They assist buyers by telling you whether or not a house’s or property’s pricing is fair according to the current market. In addition, they will help you view the physical homes. When listing a home in Colorado specifically, studies have shown your exposure to potential buyers is 80% less without a real estate agent.
Some real estate agents and brokers in Colorado will charge you an up-front fee to begin working on listing your home or finding one for you. It’s best to stay away from these types of companies as there are much better options out there. Most agents will not charge anything up-front for service, but will rather take a payout of a commission percentage at the time of the sale of the Colorado property.
6% of the property’s total sale price is the typical real estate commission in Colorado. That 6% is split between the seller’s broker, and the buyer’s broker. Basically, each takes home 3% of the final sales price of the Colorado property.
Each agent divides the 3% the brokerage earns with their employing broker. However, this is a negotiation between the agent and their brokerage.
A Colorado real estate agent cannot work independently or accept direct payment of commission or fees. By law, an agent must work for an “employing/managing broker”. The managing broker is the only entity that can accept direct payment of commission or fees relative to real estate sales. A broker can either work independently, or hire agents to work underneath their brokerage for a split of the commissions.
Listing your Colorado property for sale is something that can either be done on your own or you can hire a real estate broker to list your home and get it sold for you. You lose 80% exposure to the buyer’s market when you choose to list your home independently, which is a large reason that 90% of homes in Colorado were sold through an agent in 2017.
You must first have your property appraised to understand the value of your property. Then – get your property listed on the Colorado MLS, which is a multiple listing source for buyers to access and browse available properties in Colorado. Agents will call you to schedule showings with potential buyers. After showings are completed, you will start to receive offers on your property.
The offers you will receive can either be accepted or denied by yourself. Once you accept an offer from a potential buyer, you now must negotiate the sale contract and financial loan paperwork process. Hiring a reputable real estate firm like Your Equity Real Estate means we handle all of this for you, for 0% commission!!
Getting pre-approved for a mortgage is the first step of the home buying process in Colorado. You must first know exactly how much you can get approved for before you can start looking for homes to buy. Colorado property ranges anywhere from $80,000 up to $10,000,000 plus! It’s important to know where your credit profile and current financial situation come into play when buying a new home.
Your Equity Real Estate has many partners that work hand-in-hand with our clients to ensure financial success when it comes to purchasing a home in Colorado. We recommend clicking HERE to fill out a quick couple questions to find out how much you can get approved for. Feel free to give us a call at 970-381-8993 if you have any questions.
If I've already listed my home myself, can I still hire a real estate agent to take it over and help?
Absolutely! The process of selling your home in Colorado is not one that is easily navigated, unless you have experience. Studies have shown that real estate agents in Colorado are able to get you 80% more visibility to the prospective buyers market. It is a smart choice to go with a real estate firm with years of listing and home sale experience.
Square footage is classified as any “livable space”. What this means is any area of the structure that is comforted by heating. As an example – things such as garages, attics, and unfinished basements are not included when calculating a home’s square footage.
Again, when you are looking specifically at property in Colorado – pay attention to the measurements of square footage (homes) vs. acreage (land) as referenced in the section above.
Private mortgage insurance (PMI) is an insurance policy held by the borrower (you), to cover the lender. If you are borrowing more than 80% of the value of the property, then you will more than likely need mortgage insurance.
An apprasial is when a licensed professional (apprasier) physically goes out to the property, and completes an overall evaulation of the worth and value of the property. When selling your home it is important to hire an experienced and honest appraisal company to ensure you get maximum value out of your property. When buying a home, the lender will typically require an appraisal as part of the closing process to determine how much the property is worth in ascertaining how much they will loan on the Colorado property.
The fastest way to increase the value of your home in Colorado is to make home improvements to the interior and exterior of the structure and surrounding acreage. It’s important that you enjoy your home as you live in it, but you never want to lose sight of the potential resale value of your Colorado property. You receive two very enjoyable benefits of making home improvements – the financial value that arises when you sell the home, and the current enjoyment of the upgraded living areas.
Steer clear of “personalized” updates such as vibrant paint colors, swimming pools, high-end fixtures, large outdoor gardens, etc.. The more the home is customized to you individually, the less appealing it will be to the potential buyers market. Most owners look at pools, gardens, and other high end additions as more maintenance and long term costs for themselves – which turns them off during the buying process.
Make sure you tend to stay with neutral colors, fixtures, appliances, etc. to maintain appeal in your home while trying to sell it. Simply just painting the interior and exterior surfaces can provide a solid boost in your home’s salability, replacing the carpet can provide an increase as well. Finally, be sure to create natural and artificial light throughout your home during the listing and showing process.
You may choose to do this on your own or hire someone to. It is HIGHLY recommended that you hire an experienced and professional inspection service. A home inspection is the thorough and calculated assessment of a home’s structure, equipment, and immediate surroundings.
If you are looking to sell your home, we recommend having a pre-inspection done. This will help make you aware of any issues a buyers inspection company may find. It will also give you a list of concerns you may want to address before listing the home on the market. Lastly, advertising you’ve done a pre-inspection when listing your home on the Colorado MLS will give your property a leg up on the competition in buyer’s eyes.
Closing costs in the Colorado real estate market are part of the transfer process from a seller to the buyer. There are expenses incurred by the companies that process the paperwork and perform the behind the scenes work on the home sale. Some examples of closing costs are :
Real Estate Commissions
No, you do not need a real estate license to form an LLC or Corporation with the intent of buying and selling houses for profit. You can buy, hold, and sell properties for yourself in an LLC or a Corp. Once you begin to work with other entities and parties acting as a real estate licensee, then you need a license.