Denver Realty Experts Denver Real Estate Blog

What makes a "good" agent?

This week I breakdown how agent performed in 2016  - How many transactions did an average agent complete and how many cities did each agent work.

Click video below for the full report:

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The data behind the rumors.

Click video below for the full report:
• What % of MLS active listings are in Zillow?
• What % of Zillow listings are actually available for sale?

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The Psychology of Real Estate

Is there a difference between believing what someone says and trusting what they say? I think there is.

When I work with buyers and sellers, I have a duty to give them my best advice and be their advocate. I feel this is one of my strengths. My clients believe I know the Denver market, and understand the data behind it, so my advice provides them with valuable insight, allowing them to make the best decision possible.

That being said, I firmly believe a little skepticism from clients is healthy. After all, I won’t be living with them, commuting with them, growing a family with them, etc. So instead of “trusting” what I say at face value, my clients need to make decisions that only they are qualified to make based on the

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What happens when you don’t sell the first week?

There are many different philosophies on how to price a home but the result of not getting a contract in the first week is clear: a lower sales price and missed opportunity.

To see what happens to offer prices during and after the first week on the market, I graphed data for both detached and attached homes in multiple price ranges in the city of Denver.

• Under contract in the first week? Homes averaged 2.3% over the list price.

• Under contract in the second week? The sale price dropped 0.24% below asking price.

• Under contract in week 3 and later? See the graph below.

The 2.5% swing from week 1 to week 2 means $10,000-$12,000 less for the seller (based on the average home in Denver.)

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I wanted to see how each Denver neighborhood broke down in agent transactions. Do a few agents have most of the sales or are the sales spread out over multiple agents?

As defined below, there are two types of agents: ones that focus and ones that diversify. Is one better? I think that will depend on the client and the situation. Is one more common? Let’s see from the data below.

Neighborhood Expert  There is value to being a neighborhood expert—to knowing a lot about one specific area and all the ins and outs of the neighborhood (i.e., schools, restaurants, home prices, trending, home types, events, etc.)
==>  On average, only 13% of agents perform two or more transactions in a single neighborhood. (YTD 2016)

Area Expert  Having a good general

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After showing a bunch of condos over the past few weeks, I wanted to see how HOA dues affect the price per square foot and if I could find a correlation between the two. Because a buyer that can afford a $400,000 condo would have a hard time justifying HOA dues of $800 per month, but would have no problem paying $200 per month.

I exported data for 2015 in the city of Denver. Then I created and calculated an “HOA Factor”. This factor would represent how the HOA dues relate to a sale price and therefore the price per square foot.

The HOA factor is basically the relationship of sale price to HOA dues:

Price = $400,000, Dues = $200
HOA Factor = 0.5

Price = $400,000, Dues = $400
HOA Factor = 1.0

Price = $400,000, Dues = $800
HOA Factor = 2.0

I started with

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