Selling a home in Colorado

Colorado is part of the mountain, southwestern and central regions of the U.S. with a population of over 4.6 million as of 2005. Its capital is Denver considered the state’s most populous city.

Demand for housing in Colorado has been growing in recent years. This, despite the presence of more than two million housing units in the state. Housing demand has actually exceeded supply resulting in an increase in housing prices. The median price in 2005 for the more than 84,000 single-family homes sold was $227,071 while that of condominiums and townhouses was $155,667.

Helpful tips

If you’re selling your home by yourself in Colorado, the best thing to do before putting up that “for sale” signage on your front yard is to consult a lawyer. Know all the vital information in selling a home notably pertaining to the financial and legal aspects. Usually, it is the seller’s attorney who makes the contract for sale of the property, the deed, receipt and closing papers. However, the buyer also has a right to let his or her lawyer review the papers. For your security, always have the documents checked by your attorney before signing any contracts.

On the financial side, feel free to consult a local appraiser to determine the value of your home in the present real estate market. This should be your basis in setting your sale price. Make sure that your price is fair enough and not too high to scare potential buyers. Consider also the potential taxes and exclusion on your property. To qualify for an installment sale, there should be at least one payment after the tax year of sale. Keep your insurance until everything is settled concerning your property. If your buyer won’t assume your policy, you can get a refund upon cancellation.

Real Estate Forms

The various forms needed in selling your home include the real estate sales agreement, residential property disclosures, lead-paint disclosures, inspection notice, counter offer, closing instructions and earnest money receipt, earnest money release and Colorado Statutory Power of Attorney for Property.

Closing costs

Understand the closing costs during the sale of your home. Determine the cost of the title insurance and transfer taxes and whether you will be the one to shoulder them. Normally, the seller pays the new owners title policy premium while the buyer shoulders the premium for the mortgage company policy. Decide also if the attorney’s fees for the preparation of the real estate contract, escrow contract and deed to be divided between you and your buyer.

As for other costs such as assessments for streets, sewers and the like, these should also be decided if they are to be paid by the buyer with or without credit on the purchase price. If there are planned assessments which have not yet resulted in a lien on your property, reveal them to your buyer.

Do offer incentives to your buyer by paying some of the closing costs. If this done at the start of the deal, this will definitely be warmly welcomed by your potential buyer as it will help lessen his or her expenses.

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