In the Colorado Springs area, the real estate market is a sellers market overall. However, that does not mean that all homes are selling quickly and for top dollar. With the exception of the lowest price ranges, buyers are actually very picky. They are willing to pay top dollar for the house they want IF it is updated. If they can't find what they want, they appear to be content just waiting.
(Note: This post is somewhat a work in progress. I plan to update it over the next few days to include more pictures and specific sales statistics for the full month. )
Homes that are not updated are NOT selling very fast unless they are priced low enough that an investor can purchase the home, gut the kitchen and bathrooms, make the updates and then resell the home. They have to be able to resell the home for an amount that will allow that person/company to have the funds to invest in another fix-it-upper, pull permits, pay the work crews, purchase materials and supplies, plus help pay their monthly living expenses.
What kind of updates are required for a home to be sought after? Well, it depends upon the price range your house falls in. As a quick disclaimer, I specialize in homes that are located on 5 acres or more in the Colorado Springs area. Due to the time required to drive to different rural properties, I don't have time to closely analyze the house in town. However, a quick glimpse of over 50 home sales that have been completed within the last two days, shows a very similar trend. I'm pulling my data from the Pikes Peak Association of Realtor's MLS.
What kind of updates are required for a home to be sought after? It depend on the price range.
- For homes on acreage under $200,0000 that are eligible for conventional, FHA or VA home financing: There are so homes in this price range that a buyer can finance, that a seller could get by without making any cosmetic updates as long as the property can be insured and will meet the lender's financing requirements. "The home must be conforming." Basically, it needs to be a normal house with electricity, water and a septic system. If it is a manufactured home, the home must be set on a permanent foundation and the title to the manufactured home must have been purged. (Thus, most single wides will not qualify.)
Between March 1 and March 29, only one home on acreage under $200,000 has closed. The house was in such rough shape that it sold for $57 per square foot ($79,000).
- Homes on acreage priced between $200,000 - $300,000: Homes closer into town sold faster than those further out.
Yet, looking at the March home sales, in every case, the kitchens appeared to have been updated. Most has floors that looked like hardwood. A few had tile floors. Appliances tended to be either stainless steel or white in color.
As you moved up the price closer to $300,000 - the kitchen updates start becoming even nicer. Some kitchens are fully updated to include new appliances, new cabinets, new sinks with goose neck facets. Glass tile and tile back splashes in the kitchen are also showing up.
In the $300,000 price range:
Glass and tile back splashes are much more common.
Flooring has been updated with wood looking floors. (I have not been able to clearly distinguish between wood laminate floors, engineered wood floors and real wood floors.)
The majority of the rooms were painted in a neutral beige, off white or grey color. No wallpaper.
Many of the bathrooms appear to have updated light fixtures, sink faucets, vanities and showers with beautiful tile work.
$400,000 plus price range:
In addition to the above, more and more of the
Pendant lights in the kitchen
Master bathroom has been completely updated.
The other bathrooms, to include those in the basement have also been updated.
The quality of the updates is also becoming increasingly important.
What
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