By David Schlichter
This is ordinarily the time of year when the Denver real estate market is in a full frenzy--but this year things are actually cooler (for once) than they were last year. From the number of homes sold, to the number of showings per listing, days on market, sale price, and the closed price to original price ratio--all of these statistics are actually down on a year-over-year basis.
That doesn't mean that the real estate market isn't competitive--we're just comparing the April 2023 market conditions to those of April 2022--which was the peak of the hottest market in Denver's recorded history.
Homes are currently selling for an average of 100% of their asking price. Some homes are going under contract the first weekend on the market with multiple offers, while others are lasting well beyond the first weekend.
It's a complicated market--but one in which buyers have a little more breathing room and sellers may be able to find replacement homes more easily.
You likely received a letter in the mail recently with your updated home valuation from your county's Assessor’s Office. This home valuation is what the county uses to determine the amount you owe for property taxes. We’ve been hearing from many clients who were surprised by how much their new property taxes rose since the last time properties were reassessed two years ago (the average increase is +30%), and they want to know what their options are.
Here’s what you need to know:
Tax valuations are based upon the county’s perceived value of your property as of January 1, 2023, and the comparable sales that the county uses to determine that valuation are from the two year period between July 1, 2020 and June 30, 2022. That two year period, coincidentally, was the strongest two years in the Denver metro area's real estate history—and it doesn’t include the slower six months that followed after interest rates rose at one of the fastest paces in American history.
Your home value has likely gone up substantially since the summer of 2020, and if you were to sell the home in today’s market you might be surprised by how high of a sale price you could achieve. But that doesn’t mean that the Assessor’s opinion of the value of your home as of January 1, 2023 is accurate or that there aren’t comparable sales that would justify a lower valuation for tax purposes.
As a homeowner you have a right to appeal the Assessor’s valuation of your home. The easiest way is to fill out a form online with your county by June 8, 2023. For that appeal you can state that you believe that your home’s valuation is too high and you can cite specific sales the Assessor didn’t use that occurred between July 1, 2020 and June 30, 2022 to see if it might be possible to get a lower valuation for tax purposes.
Right now there is a bill moving through the Colorado legislature to help provide homeowners with relief from the rapid increase in assessed valuations. The details of this legislation are not yet finalized, nor is it clear whether or not the legislation will pass, be signed, and become law.
We're here to help. If you are a Schlichter Team client and would like us to see if there are comparable sales that you might be able to use to support a lower valuation on an appeal with the Assessor’s Office, please complete this form.