This article won’t always be accurate, as you might know, the Colorado Springs market changes almost daily. But the principles about what are the best valued homes in our town will generally remain the same. So here are a list of some of the best valued properties in Colorado Springs and how to identify their characteristics while you search for a home.
To understand how to assess the best value in a home, we first need to address what goes into estimating a property value. Once you understand that, it will feel much less overwhelming to identify a great deal on a quality home!
1. Focus on your local area
Seems obvious, but searching for homes in Denver, Castle Rock, Pueblo, and even in neighborhoods outside of you preferred area are going to distract your search. Look at recent sales in the same neighborhood as a home you are interested in to see what you will likely pay. Make sure the sales are within the last 6 months, the market changes very quickly.
2. Look at similar properties
Okay, again, seems obvious, but let’s talk about this. Limit your search to homes that are similar to the homes you’re looking to put in an offer on, based on the following categories.
- Dimensions: Look at the total size of the property, notice the finished vs unfinished areas, outdoor spaces, and living space.
- Locality: Focus on homes in similar neighborhoods, but also distance from main roads, schools, and businesses you will frequent.
- Exterior: If you’re hoping for a garage, find others that have that. Also, making sure that the driveway and number of parking spots is comparable to your properties you are interested in.
- Interior: This includes number of bedrooms, bathrooms, living spaces, and kitchen size.
- Condition: Consider when and how they were built, as well as, what their current state is.
3. Compare the features of the properties
Once you have gathered all of the above information, you’re prepared to compare the new homes and your previous home. It’s up to you to decide whether the house you’re looking at is inferior or superior to the others sold in the area.
4. Other Things to Consider
- Days on the Market (DOM): this is the number of days since the home was listed until sale.
- Median Price: Specific to your area and the average of sales of homes in that area.
- Clearance Rates: This number shows the percentage of homes sold in auctions, including those sold before and after an auction. This is a great indicator of the current demand in the real estate market of that area.
5. Common Property Value Mistakes
- Sellers have strong emotional ties to their houses. This makes it difficult for them to appraise the value of their property. They’ll often ask more for the house than its actual worth.
- Buyers are unaware of the real estate market conditions. If you’re buying or selling a property, it’s important to know how hot the market is right now.
- People compare properties to those currently on the market. Properties that are still on the market only have a list price. This price is in no way indicative of what they’ll sell for in the end.
- The goal of real estate agents is to sell a property. Sometimes they’ll tell you that there are competitive bids on a house you’re interested in. They will also exaggerate when talking about the prices of comparable properties.
- People compare properties that aren’t similar. When valuing properties, it’s important to compare them with those that resemble them. This means they should be similar in location, size, and quality.
- Buyers invest in brand new properties. Government offers incentives for buyers who choose to invest in new properties. This increases the demand, thus inflating the actual value.