285 Hustler January 25, 2024

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285 Hustler 3

January 25, 2024

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NAR Releases Profile of Denver Metro Area Buyers and Sellers

Last week I reported on the real estate market in metro Denver. This week, I’m providing information from a National Association of Realtors (NAR) survey of buyers and sellers that was released in December. NAR did a national survey but provided data from the 169 Denver area respondents who had purchased a home in the 12-month period from July 2022 through June 2023. The buyers were identified from public records of transactions, not from MLS data.

Those buyers who had also sold a home constituted the database for the survey of sellers. The survey was limited to buyers of primary residences, not investment properties. Here’s my editing of the report released for Denver via the Denver Metro Association of Realtors.

Characteristics of Home Buyers • In Denver, the median age of recent home buyers was 43 years old, compared to 49 nationally. The largest share of home buyers in Denver this year were in the 25 to 34 years age group (27 percent) and the 35 to 44 years age group (25 percent). This graph shows both the Denver and national breakdowns:

• 82 percent of buyers were White/ Caucasian, 9 percent were Hispanic/ Latino, 2 percent were Black/African American, 8 percent were Asian/Pacific Islander, and 3 percent identified as other.

Financing the Home Purchase • For 42 percent of buyers, the source of the downpayment was their savings, and 35% of buyers cited using the proceeds from the sale of a primary residence for their downpayment. Here is the full breakdown: • The median percent financed for first-time buyers was 91 percent compared to 75 percent for repeat buyers.

• Buyers continue to see purchasing a home as a good financial investment.

Eighty-two percent reported they view a home purchase as a good investment.

home was the desire to move closer to friends and family (17 percent), the neighborhood has become less desirable (nine percent), or moving due to retirement (eight percent).

• Sellers typically lived in their home for 10 years before selling.

Do replace damaged countertops.

Do repair damaged walls and replace damaged doors that can’t be repaired.

Do replace those 1990s glass-and-brass lighting fixtures. (They’re so unappealing that Habitat’s thrift store won’t accept them as donations!)

Do replace burned out light bulbs. Now that LED replacement bulbs are so cheap (under a dollar in bulk at many stores), I suggest replacing all your incandescents or CFLs with LED “daylight” equivalents.

Do repaint where there is peeling or discolored paint. (Think “eyesore.”)

Do replace rotted timbers on your deck, then power wash and re-stain or repaint as necessary.

Do improve curb appeal (always the first impression), including weeding and pruning and freshening the front door.

man for our clients.)

Beyond the above advice, I tell my sellers to be strategic about major issues which they know need to be done. If these are likely to become inspection issues, don’t fix them prior to listing your home if they’re not the kind of eyesore which would deter a buyer from making an offer.

For example, I had a listing with damage to the concrete driveway. The seller was thinking he should repair it before putting the home on the market. We knew it would be an inspection issue, but by leaving it undone we could use it as a bargaining chip. Sure enough, we got under contract and the inspection demands included repairing the driveway. Since it was the most expensive item on a long list of repairs, we said we’d repair that but nothing else, and the buyer accepted it.

Characteristics of Homes Purchased Home Selling and Real Estate Profes• 16 percent of buyers pursionals chased a new home, and 84 per• 85 percent of sellers reported that cent of buyers purchased a pretheir agent provided a broad range of viously-owned home. services and management of most as• Detached single-family homes pects of the home sale. In Denver, 80 continued to be the most compercent said that their agent provided a mon home type for recent buyers at 79 Home Sellers and Their Selling Expe- broad range of services. percent, followed by townhouses at 11 rience • 67 percent said that they would def• For Denver sellers, the most com- initely or probably (19 percent) recompercent. 7% purchased units in multifamily buildings, included half- monly cited reason for selling their mend their agent for future services. duplexes, etc.

• 68% of all buyers purchased in a Consider These Tasks to Make Your Home Market Ready First, only make improvements that (It’s true that red doors sell homes…) suburb/subdivision, 20% purchased in Do have someone with “fresh eyes” an urban area/center city, and 11 percent eliminate a defect or an issue which might turn off a prospective buyer. I call walk through your house and identify in a rural area or small town.

• When it came to sustainability fea- these “eyesores,” things that stand out like other turn-offs. (Our free staging consulttures, windows, doors and siding were a sore thumb, and not things that are simp- ant performs that function.)

Do not replace undamaged countertops “very important” to 34% of Denver buy- ly “dated” or out of style.

Here are some examples: or bathroom fixtures just because they are ers. Coming in second was energyDo refinish hardwood floors that are “dated” — even those pastel colored bathefficient lighting at 28%, heating and seriously and obviously in need of refin- tubs and sinks. (I tell buyers “You can’t cooling costs at 27%, with solar panels ishing. buy those anymore!”) The exception being “very important” to only 9% of Do replace carpeting that is seriously would be the toilets. A white chair height buyers. (Nationally, solar panels were old, such as 1970s shag carpeting, or car- low-flow toilet can be replaced for a couonly very important to peting that is seriously worn or stained. ple hundred dollars and installed by any 6% of buyers.)

(Again, think “eyesore.”) handyman. (We have a $25/hour handy-

Home Buying and Real Estate Professionals • 89 percent purchased through a real estate agent, and two percent purchased di• Denver buyers had a median income rectly through the previous owner. of $146,900.

• 60 percent of buyers were married I’m Now Publishing on Substack Everything you read in this ad each couples, 16 percent were single females, week — and more — is published at ten percent were single males, and ten http://RealEstateToday.Substack.com percent were unmarried couples. and comes to you automatically each • 34 percent were first-time buyers.

Wednesday. I also write a political col• 27 percent of buyers had children umn you might like. Find it at http:// TalkingTurkey.Substack.com. Since 1/6 under the age of 18 living at home.

Rita and I are on a world cruise on the • 11 percent of home buyers pur- Viking Sky. You can subscribe to my chased a multi-generational home, to daily travelogue at http://WhereAreJim take care of aging parents, because of andRita.substack.com. children or relatives over the age of 18 During the cruise, I am making and moving back home, and for cost- receiving calls and emails as usual, even at sea, so feel free to contact me. savings.

We proudly provide free use of this moving truck to our sellers and buyers, along with free moving boxes, bubble wrap and packing paper.

Non-profits and community organizations also put lots of free miles on it!

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DETAILS OF OFFER: Offer expires 1/31/2024. Not valid with other offers or prior purchases. Buy one (1) window or entry/patio door, get one (1) window or entry/patio door 40% off, and 12 months $0 money down, $0 monthly payments, 0% interest when you purchase four (4) or more windows or entry/patio doors between 9/24/2023 and 1/31/2024. 40% off windows and entry/ patio doors are less than or equal to lowest cost window or entry/patio door in the order. Subject to credit approval. Interest is billed during the promotional period, but all interest is waived if the purchase amount is paid before the expiration of the promotional period. Financing for GreenSky® consumer loan programs is provided by federally insured, federal and state chartered financial institutions without regard to age, race, color, religion, national origin, gender, or familial status. Savings comparison based on purchase of a single unit at list price.Available at participating locations and offer applies throughout the service area. See your local Renewal by Andersen location for details. Central CA License #1096271. CA License CLSB #1050316. License #RCE50303. WA License# RENEWAW856K6. WA License #RENEWAP877BM. OR License #198571. Some Renewal by Andersen locations are independently owned and operated. "Renewal by Andersen" and all other marks where denoted are trademarks of their respective owners. © 2023 Andersen Corporation. All rights reserved. RBA13228

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