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Your house in Colorado Springs may not look much different than it did last year, but the housing market in Colorado has changed in a big way. Higher mortgage rates and worries about a potential recession have calmed the buying bonanza of 2022. In fact, the volume of home sales in the state in June 2023 was down more than 20 percent year-over-year, according to Redfin. In Colorado Springs in particular, Redfin data shows that the median home price has taken a small hit, dropping 2.2 percent since last year.
Despite all that, the housing market in this town — one of Bankrate’s best places to live in Colorado — remains fairly robust. Read on to understand how conditions have changed, and how you can sell your house fast in Colorado Springs.
How fast can you typically sell a house in Colorado Springs?
In June 2023, the typical for-sale home in Colorado Springs received two offers and spent 23 days on the market, according to Redfin. That’s relatively fast, which partially reflects the fact that early summer is the prime time to sell a house. Data from the Pikes Peak Association of Realtors (PPAR) shows that in February, homes spent a median 54 days on the market.
Need to sell faster?
If you don’t have any time to spare, there are ways to speed up your sale in Colorado Springs.
- Find an iBuyer: The two biggest iBuyers, Opendoor and Offerpad, are both actively buying properties here, which means Colorado Springs sellers can get a super-fast cash offer online — the “i” in iBuyer literally stands for “instant.” Note, though, that these companies will likely offer much less than you might make on the open market.
- Sell for cash: iBuyers aren’t the only companies with the resources to close on your home quickly. Quite a few companies buy houses for cash, and many individuals make all-cash offers, too. This bypasses the need to wait on mortgage underwriting and approval, which can save a lot of time.
- Undercut the market: This is still a very attractive place for buyers, and a lower-than-expected price can give them a reason to get off the sidelines and act fast. The median sale price here is $450,000 according to Redfin — a home in good condition that listed for, say, $419,000 would attract attention, and may just spark a bidding war. Work with an agent to find the pricing sweet spot that will pack your open house.
Selling your home in Colorado Springs
If you can afford to take a bit of extra time, you’ll likely make a bit more money. Be sure to consider these essential questions before you list your home for sale.
Is it worth upgrading your home before you sell?
In most cases, it won’t make much sense to invest in any major upgrades before selling. A remodeled kitchen with luxury finishes is nice, but it’s unlikely to recoup its full cost when you sell. Plus, it will take a long time to complete — slowing down your sale instead of speeding it up. If you’re looking for ways to boost your home’s value, stick to smaller, less expensive projects.
What should you fix before selling your home in Colorado Springs?
A pre-listing inspection is not required, but it can be a useful way to get ahead of any potential issues that can arise when a buyer does their own home inspection. However, you don’t have to go crazy and pay for everything: Talk to your Realtor about what really needs fixing and what not to bother with.
Should you pay to stage your home?
Ask your agent’s professional opinion on whether you should hire a home staging service. It costs some cash to stage a home, but it can pay off in a big way. With a good attention to design detail, your house can instantly feel like home to a prospective buyer.
How should you price your listing?
There are so many factors that impact what your house is worth: age, square footage, location, school district and more. Home costs are always changing, too: The median price tag in Colorado Springs was $40,000 lower in January than June, according to PPAR. With that in mind, review comps of recently sold nearby properties with your agent to get a good idea of what buyers are willing to pay. And be realistic: Redfin shows that homes here are selling for right around their list price now, so don’t expect to command the over-asking prices that were common at peak of the pandemic buying craze.
What do you need to disclose to a buyer?
All sellers in Colorado need to complete the state’s residential property disclosure form. It’s a 10-page document that outlines your knowledge of any defects with the property. You should also complete the green disclosure form, which includes information about energy-efficient features in the home. Finally, if your property belongs to a homeowners association, be ready to hand over all supporting documents about the association’s bylaws and financial reserves.
When it’s time to close the deal, you don’t really have to do much as the seller. You’ll want to make sure the property is in great condition for the buyer’s final walk-through, but otherwise, your main responsibility is paying for your portion of the closing costs.
Costs of selling a home in Colorado Springs
- Realtor fees: The biggest line item of every seller’s closing costs will be real estate commission fees. In most cases, that comes to about 6 percent of the home’s sale price. On a median-priced $450,000 sale, that’s $27,000.
- Title insurance: The seller often covers the cost of a new title insurance policy in Colorado, although you might be able to negotiate this with the buyer.
- Unpaid property taxes and HOA dues: Depending on when you move out, you’ll likely need to pay a prorated portion of these regular homeowner expenses.
- Concessions: If the buyer uncovers any problems with the property during a home inspection, you’ll likely receive a request for concessions. You don’t have to say yes, but it is common and it can help keep your sale on track. If you agree, you’ll pay a portion of the buyer’s closing costs via your proceeds from the sale.
- Attorney fees: You don’t have to hire a real estate attorney in Colorado, but it’s definitely a wise move. Selling a home involves complex contract language and a large sum of cash, both of which make having a legal expert on your side worthwhile.
Now, you need to determine what matters most to you: time or money. If speed is the most important thing, reach out to an iBuyer or local homebuying company and see what they offer you. (There’s no obligation to accept.) If maximizing your profit is key, reach out to a local real estate agent. Homes are spending around 23 days on the market, which is still fairly fast, and you’re likely to make more money with this option.
Sellers still have an advantage in Colorado Springs due to low inventory: Data from the Pikes Peak Association of Realtors showed just 1.6 months of supply in June 2023, which is well short of the 5 to 6 months of supply that would reflect a balanced market. The median sale price here is higher than the nationwide median, and the typical home receives two offers, according to Redfin. So yes, it’s still a good time to sell a house here.
Redfin data shows that home prices here are dropping, but only slightly. The median price tag fell by a modest 2.2 percent between June 2022 and June 2023.