Over the last six months, I’m seeing some trends that are concerning about the level of desperation that my peers have shown. Let’s look at where this desperation came from, and some of the things that potential Sellers should be aware of, before listing their home.
From 2021 to 2025, Northern Colorado homes sales dropped from nearly 25,000 to about 15,000. That’s a 40-percent drop.
The Metro Area was hit just as hard, peaking at 55,000+ sales in 2021 and is down 39-percent, looking to be closer to 34,000 in 2025.
The number of licensed realtors has only dropped 1.5% in the same amount of time. Basically the same number of people eating from 60% of the pie. Some elbows are getting thrown.
Here are some things that Sellers can do to make sure that they are looking to sell their home, when vetting a real estate professional.
Interview More Than One: A poll by sold.com found that 4-of-5 Sellers hired one of the first two agents they met. That is a big investment to put into the hands of the first person interviewed. My recommendation: 3-minimum.
Take them for the tour. Look for honest discussions, ask lots of questions, and go with the professional you feel most comfortable.
Beware the Prophets and Soothsayers: When buying and selling real estate, there are two truths. 1. Buyers think homes are overpriced. 2. Seller’s think their home is worth more. I say that with a chuckle, but it is something we see all the time. When interviewing, be careful of falling into the reverse-Price-Is-Right-game.
There are some professionals that are getting the contract by telling people their home is worth more than it really is. When Sellers already think their home is worth more, and a professional says they are right, the Seller feels better about going with them. I watched a home value start at $1.4M last fall, it stayed on the market and kept dropping price until is finally sold for about $950,000. That’s almost a half million dollars they missed by.
A few things to remember when you are looking at pricing.
In the past 3 years, average home prices in Northern Colorado have only gone up 3.5-percent. A $600,000 dollar home in 2023 is now selling for about $618,000.
A new furnace, roof, and hot water heater do not raise the price of your home. They help sell it, but don’t expect to recoup all of those funds (unless you bought the home and they were in disrepair.
Refurbishing, renovating, or updating your home, rarely brings 100-percent returns, when you sell the home. According to the National Association of Realtors, most updates and renovations only bring back about 50%-65% of the money spent, if the home was in average condition when it was purchased originally.
Local Competency: When interviewing and talking to professionals, local knowledge is a big deal. I had a non-local realtor contact me for advice on a listing they had in Keenesburg. They were asking if the price should be lower than average based on the traffic because the home was on Main Street. After cleaning up the coffee I spit on my desk, laughing. I asked which of the eight blocks of Main Street it was on. They were a Denver agent who had never been to the town.
True, numbers and experience do matter, as a whole. I’ve worked with some incredible agents who sold more homes in a year than many do in a career. But when it comes to protecting you, understanding local markets, and maximizing your returns, it does make a difference. Both short-term (selling your home) and long term (liabilities and disclosures).
Unethical Sign Crossing: This is a line that can’t be crossed by real estate professionals. Something Sellers often times do not know, is once they are in a contract to sell their home, other real estate professionals cannot contact them to sell their home.
There are some things that are not considered “direct contact” like mail blasts that hit everyone in your neighborhood. But once you have picked your professional and put your home on the market, you should make them aware of any others who have reached out to you about selling your home, or contact the Colorado Division of Real Estate if this happens.
If selling your home is on your New Years Resolution for 2026, hopefully this will help with getting you set up with a professional that will.
