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Old 01-29-2008, 11:27 AM
 
Location: Aurora, Colorado
2,212 posts, read 4,597,796 times
Reputation: 2363

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I know that "housing is local" but I would like to hear some stories from those of you who have bought/sold a house recently. What was the asking price versus the final sale price?

There are a lot of realtors on this site that throw out numbers and every day, we seem to hear from the media that the housing market is going to tank even further. I don't want to hear about averages...I'd like to hear from individuals. Despite the constant statements I read on this website about how Denver home prices didn't rise as fast so therefore won't fall as fast, I also know that Denver has a very high foreclosure rate...that has to affect property values.

For the record, in the next 2 months, I will begin my house search in Parker. I'm specifically looking no further south than Main Street (for proximity to the 470). I have been looking at homes for the last 8 months (am currently renting) and have noticed that the homes I'm looking at (225K to 275K) have dropped in price. There is a specific home that has not dropped at all (still almost $275K), yet nearly the same home that's literally across the street is for sale at $249K. The $275K home has some upgrades (granite countertops and newer flooring), but can that possibly justify a $25K difference?

Any help you can give me and I am sure others would be greatly appreciated. Again, please no "average" lists...be specific. Thanks!
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Old 01-29-2008, 11:41 AM
 
Location: Earth
1,452 posts, read 3,658,704 times
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I've 'heard' that the >500k upper end market isn't being affected nearly as much as the $200-400k realm...i.e. most of what we see in 'cookie cutter land'. Any data to back that up might be interesting.
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Old 01-29-2008, 11:55 AM
 
Location: Denver, CO
739 posts, read 2,714,500 times
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I'd love to hear from realtors but as someone who follows the market, it seems to be very neighborhood specific. Good homes that are priced right are selling and from what I see, people don't seem to be taking huge hits. central denver hoods are still holding steady from last year- not much increases, but not any decreases (again, from what IA can see) either.
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Old 01-29-2008, 12:13 PM
 
Location: Denver/Boulder Zone 5b
1,344 posts, read 3,222,441 times
Reputation: 1288
Quote:
Originally Posted by Shuffler View Post
I've 'heard' that the >500k upper end market isn't being affected nearly as much as the $200-400k realm...i.e. most of what we see in 'cookie cutter land'. Any data to back that up might be interesting.
I have read this numerous times from local real estate agents who post monthly market analyses in our general vicinity. It seems as though communities with average home values/prices above $500,000 (give or take a few thousand) are not as affected, although this obviously does not mean expensive homes in upper-class neighborhoods can't be in foreclosure.

As has been discussed before in other threads, foreclosure rates vary tremendously from one area to another. While the Denver Metro and/or the state of Colorado on average may have a high foreclosure rate, there are many communities within the area that have much, much lower rates.

Instead of focusing on a state or large metro area, I personally believe it is best to focus on a specific area if one is looking to move. Some areas continue to show appreciation (albeit not terribly significant), while others remain stagnant and others depreciate.
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Old 01-29-2008, 12:25 PM
Status: "Celebrating 30 years as a Broker" (set 19 days ago)
 
Location: Just south of Denver since 1989
10,882 posts, read 29,310,762 times
Reputation: 7085
Absolutely NickMan. Real Estate is local. There is no rule of thumb to set the selling price. Not 2% less, not 5% less, not even 10% more. Not what the seller paid, not what the mortgage amount is. Not what your parents or co-workers think.

The micro market is the only market a home buyer or seller should analyze. What is important is Days on Market, Comparable Homes Sold (w/i the last 90 days is preferable.) Also look at the average price/size for homes for the area.

If your desire is to live in it, decide what's a fair offer, get your finances in order, give yourself the best chance of winning the property.
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Old 01-29-2008, 01:43 PM
 
5,748 posts, read 10,740,477 times
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From the trenches in Castle Rock...

I live in a recently constructed Richmond-built home in the exurbs of southern Douglas County. The houses on my street originally sold for between $225k and $300k in 2005. There are two housing styles in this neighborhood: 2-4 bedroom patio-style houses and 3-4 bedroom houses with basements. Currently, there are no houses on my street for sale.

Here are the stats for my street:

Seven of 32 properties changed hands in 2007.

Three properties sold at a profit, ranging from +3.3% to +5.7% from their 2005 purchase, the highest from a sale last February.

Four properties sold at a loss, ranging from -9% to -17%.

All of the houses with basements sold at a profit, while all of the slab homes sold at a loss.

The last two sales of 2007, both in October, were short sales to investors, one of whom then flipped the property for a tidy $25k profit (still -$20k from 2005). The other house became a rental and then foreclosed. Rather than moving out, the renters then bought the house from the bank a couple of weeks ago for about 11% less than original sale in 2005.

The largest loss (~17%) was an REO.

There have been three completed foreclosures in 2007. None are pending, although a couple of owners are behind on their property taxes. Several houses are sporting liens from the HOA. Many of the homeowners have yet to landscape their backyards or build fences.

There are currently two rental houses on my street. Both are occupied.

One property was removed from the market late last year after six months without an acceptable offer.

Over half of the houses on my street were financed at 100% by the builder.

I am not suggesting that my neighborhood is representative of the Denver region as a whole, but all is not rosy out here in the exurbs. Furthermore, based on chats with my neighbors about debt loads & loan types, I think it's going to get worse before it gets better.

Moral of the story: if you buy out here, choose a house with a basement, bid low, and plan on staying for the long-term.

Last edited by formercalifornian; 01-29-2008 at 01:54 PM..
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Old 01-29-2008, 02:53 PM
 
Location: Earth
1,452 posts, read 3,658,704 times
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It would appear that the days (daze?) of using one's house as a short-term profit vehicle are gone, hopefully forever. The whole fiasco bred bad behavior on both sides of the table. A house should be a long-term investment...5-10yrs or more
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Old 01-29-2008, 03:33 PM
 
Location: Denver/Boulder Zone 5b
1,344 posts, read 3,222,441 times
Reputation: 1288
Quote:
Originally Posted by Shuffler View Post
It would appear that the days (daze?) of using one's house as a short-term profit vehicle are gone, hopefully forever. The whole fiasco bred bad behavior on both sides of the table. A house should be a long-term investment...5-10yrs or more
I wholeheartedly agree; this is well stated. We bought our house with the intention of never moving (I know I should never say never), so we plan to ride this rollercoaster out and look forward to the future. Unfortunately, many people are riding a rollercoaster that only goes downhill and I feel bad for those who were misled by indecent lending practices. While I firmly believe heaps of research are necessary before signing your life over to your home, I also can't help but partially blame the very people/companies that took advantage of people who turned to them for guidance. That is, afterall, what those organizations are there for.
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Old 01-29-2008, 04:54 PM
 
5,748 posts, read 10,740,477 times
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Quote:
One property was removed from the market late last year after six months without an acceptable offer.
Here's one more tidbit about the house on my street that was removed from the market after six months: the sellers listed more than 10k above the highest two-year appreciation rate for a house on my street. The property was clearly over-priced. It's a shame that the sellers weren't willing to negotiate because the house is beautiful, well-kept, and has a basement. As you may recall from my previous post, the only houses that sold at profit on my street had basements, so the seller's refusal to negotiate was probably what prevented a sale.

If a seller isn't willing to negotiate, they may not have room to do so. There's really nothing you can do, other than try again with another property. There's certainly a lot from which to choose and inventory is sure to rise once the spring selling season arrives.

Last edited by formercalifornian; 01-29-2008 at 05:07 PM.. Reason: elaboration
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Old 01-29-2008, 06:01 PM
 
Location: Denver/Boulder Zone 5b
1,344 posts, read 3,222,441 times
Reputation: 1288
Quote:
Originally Posted by formercalifornian View Post
Here's one more tidbit about the house on my street that was removed from the market after six months: the sellers listed more than 10k above the highest two-year appreciation rate for a house on my street. The property was clearly over-priced. It's a shame that the sellers weren't willing to negotiate because the house is beautiful, well-kept, and has a basement. As you may recall from my previous post, the only houses that sold at profit on my street had basements, so the seller's refusal to negotiate was probably what prevented a sale.

If a seller isn't willing to negotiate, they may not have room to do so. There's really nothing you can do, other than try again with another property. There's certainly a lot from which to choose and inventory is sure to rise once the spring selling season arrives.
Yes, unfortunately this is not a seller's market and you won't reap the rewards of listing your house well above the price you paid (at least since 2005 or so). Fortunately, if a seller is not in a financial situation that forces them to sell, they should be able to wait it out; this is where the operative word "patience" will play lead role. UNfortunately, many sellers are forced to sell their homes because they got a teaser rate which enabled them to get into a home (but not stay in it) and they hold out hoping that they'll at least break even. In some areas, you may be lucky (think higher-end homes), but in most cases, luck is just that.
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