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How to Sell a Hard-to-Sell House in Colorado: 6 Cases

Brian Lee BurkeBrian Lee Burke
Jun 4, 2024 • 7 min read
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How to Sell a Hard-to-Sell House in Colorado: 6 Cases

A hard-to-sell Colorado house sells when the price reflects the defect, the listing names the defect before the buyer finds it, and the marketing reaches the buyer who does not care about it. Six cases fill the Denver metro's stale-listing list: an odd layout, a busy road, a FEMA flood zone, a foundation history on bentonite clay, unpermitted work, and a dated 1970s home. This post prices and markets each one.

The rule that runs through all six: buyers and appraisers read the discount from paired sales, so read it first. Find three homes with the same defect that closed within a mile and 12 months, compare them to three without it, and the gap is the number. The Smart Pricing Report is built that way for every hard-to-sell listing the Kenna Real Estate Group takes.

The six cases at a glance

CaseWhat buyers object toWhat fixes itCost in the Denver metro
Odd layoutBedrooms on three levels, no main-floor bedroom, closed galley kitchenFloor plan in the listing, furniture that shows each room's job, price to tri-level comps$0 to $3,500 staging
Busy roadNoise, no street parking, backing to Wadsworth, Parker Road or C-470Fence, windows, photos that show the yard, price from paired sales on the same road$3,000 to $15,000
Flood zoneFlood insurance on the loan, 2013 memoriesElevation certificate, insurance quote in the listing, LOMA if the home sits above base flood elevation$500 to $1,500
Foundation historyPiers, cracks, the word bentoniteEngineer's letter, transferable warranty, drainage fixed, repairs disclosed$400 to $800 for the letter
Unpermitted workBasement bedrooms without egress, a deck without a permitAfter-the-fact permit or a price that treats the space as unfinished$500 to $5,000 per permit plus corrections
Dated 1970s homePopcorn ceilings, aluminum wiring, original windows, brown everythingFix the systems, paint, light, price below the remodeled comps$8,000 to $30,000

How do I sell a house with an odd layout in Colorado?

Tri-levels, bi-levels and split-entries fill Aurora, Lakewood, Arvada, Littleton, Northglenn and Thornton from the 1960s and 1970s, and the objection is always the same: stairs from the front door, bedrooms on two or three levels, and no primary bedroom on the main floor. Price them against other tri-levels, not against ranches on the same street, and put a measured floor plan in the listing so buyers stop guessing.

Furniture answers the question the photos raise. A lower level staged as a second living room with a desk sells as usable space; an empty lower level with a drop ceiling sells as a basement. Vacant staging of three rooms runs $1,500 to $3,500 for the first month. Buyers in their thirties who work from home buy split levels for the separated space; write the description for them.

How much does a busy road lower a Denver home's value?

The paired sales tell you, and the gap widens as the price rises. A home backing to Wadsworth, Colorado Boulevard, Parker Road, Arapahoe Road, Hampden or the C-470 sound wall sells to the buyer who priced the quiet street and was priced out of it, so the listing has to land under that buyer's ceiling. Three things narrow the gap:

  • A solid fence and mature trees along the road side, $3,000 to $8,000, change what the backyard photo shows.
  • Replacement windows on the road side, $700 to $1,500 each, cut the noise buyers hear at the showing.
  • Showings between 10 am and 2 pm, outside the commute, and photos with the yard in the frame rather than the road.

Name the road in the description and pair it with the commute time it gives. Buyers who want 12 minutes to the Denver Tech Center or 20 minutes to downtown weigh that against the noise.

Can I sell a home in a FEMA flood zone in Colorado?

Yes. A home in a FEMA Special Flood Hazard Area along Cherry Creek, the South Platte, Clear Creek, Bear Creek, Boulder Creek or Sand Creek needs flood insurance on any federally backed loan, and the buyer's lender orders the flood determination in the first week. The listing has to get ahead of that letter:

  • Order an elevation certificate from a licensed surveyor. When the finished floor sits above the base flood elevation, apply to FEMA for a Letter of Map Amendment, which removes the structure from the flood zone and the insurance requirement.
  • Get a flood insurance quote and put the annual premium in the listing remarks. A known $900 premium beats an unknown one.
  • Show the drainage. Sump pump, grading, window wells with covers, and the date of any Mile High Flood District improvements on the creek behind you.

Our post on water damage in Denver homes from floods and heavy rain covers what the buyer's inspector will look for.

How do I sell a Colorado home with foundation repairs on bentonite clay?

Expansive bentonite clay under Douglas, Arapahoe, Jefferson, Adams and El Paso County subdivisions heaves slabs and cracks foundations when it gets wet, and Front Range buyers know the word. A home with piers, a stabilized foundation and an engineer's letter sells; a home with a crack and no paperwork does not. The packet:

  • A structural engineer's letter, $400 to $800, dated within the last 12 months, stating the repair and the current condition.
  • The repair invoice and the transferable warranty from the pier contractor. Helical or push piers run $1,500 to $3,000 each on the Front Range, so the paperwork represents real money to the buyer.
  • Drainage fixed and photographed: downspout extensions, grading away from the foundation, no sprinkler heads within 5 feet of the wall.

Disclose all of it. The Colorado Seller's Property Disclosure asks about structural and soil problems and about repairs, and a buyer who finds an undisclosed pier receipt after closing has a claim. Colorado builders must give new-home buyers a soils report; on a resale, your engineer's letter fills that role. Our post on whether a foundation crack means a Denver-area home has a structural problem explains what buyers read into each crack.

How do I sell a house with unpermitted work in Denver?

Two routes. Get the after-the-fact permit from Denver Community Planning and Development or the county building department, which means an inspection, opening a wall or two, and corrections (egress windows for basement bedrooms cost $3,000 to $6,000 each). Or sell it disclosed, with the unpermitted space priced as unfinished. Appraisers do not count a basement bedroom without an egress window as a bedroom, and buyers' lenders follow the appraisal.

The Colorado Seller's Property Disclosure asks whether additions or alterations were made without required permits. Answer it, put the answer in the listing, and let buyers price it in rather than discover it at the inspection deadline. Decks, basement finishes, converted garages and ADUs are the four that show up most; the Denver ADU, zoning and historic district guide covers what each one needs on paper.

How do I sell a dated 1970s home on the Front Range?

Fix the systems, not the style. A 1972 ranch in Centennial or Lakewood with original windows, a Federal Pacific panel, popcorn ceilings and a brown kitchen sells to two buyers: the flipper who prices from the remodeled comps down, and the owner-occupant who wants a paid-for house and will paint. Both want the systems handled:

  • Electrical panel: Federal Pacific and Zinsco panels get replaced, $2,000 to $4,500. Aluminum branch wiring from 1965 to 1973 gets an electrician's remediation and a letter.
  • Popcorn ceilings: texture applied before 1980 gets tested for asbestos, $300 to $600. Asbestos abatement in Colorado falls under CDPHE rules and certified contractors, and removal runs $4 to $8 per square foot.
  • Sewer line: a $150 to $300 scope of the original clay line, with replacement at $8,000 to $20,000 if roots have won.
  • Radon: a $150 to $250 test and a $1,200 to $2,500 mitigation system. Colorado requires sellers to disclose known radon test results.
  • Lead paint: the federal disclosure applies to every home built before 1978.

Then paint, new light fixtures, and a deep clean, $3,000 to $8,000, and price below the remodeled comps by more than the cost of the kitchen. A dated home priced like a remodeled one sits; a dated home priced $60,000 under the remodeled comp with a new panel and a clean sewer scope gets multiple offers. The adding value before selling page ranks the fixes by return, and buyers who love the era read our mid-century modern buying guide.

Who buys hard-to-sell homes in the Denver metro?

Four buyers, and the listing should speak to each one: flippers working from the Denver fix-and-flip math, house hackers who want a split level's separate entrance, owner-occupants priced out of the quiet street, and cash buyers who close in two weeks without an appraisal. The Denver cash home buyers page lists the cash route, and the Colorado distressed homes guide shows how those buyers search.

Financed buyers still close most of these homes, and the loan type matters. FHA and VA appraisers flag peeling paint, missing handrails and a panel with a known recall. Mike Oswald, VP of Mortgage Lending at Rate, NMLS 261003, Equal Housing Lender, tells our sellers before listing which fixes a buyer's loan will require. You are free to use any lender. The Colorado home financing guide covers the loan types.

Do I need a pre-listing inspection for a home with a history?

Yes. $400 to $700 for the general inspection, plus the sewer scope and radon test, puts the report in the listing packet with the engineer's letter, the elevation certificate and the permit history. A buyer who reads a "sold with reports" packet before touring writes an offer that survives the inspection deadline; a buyer who finds the same items on day 10 terminates. Homes with a stigma beyond the physical, from a death in the home to a former grow operation, need one more layer, covered in our post on turning stigmatized properties into sale-ready Colorado homes.

Where to go next

Talk to the Kenna Real Estate Group

The Kenna Real Estate Group at Keller Williams DTC has sold Colorado homes since 2002, including the tri-levels, the flood-zone ranches, the piered foundations and the 1970s originals. We read the paired sales, build the reports packet, and write the listing for the buyer who wants the house. Call or text 303-955-4220. A live person answers. Not a robot, not a phone tree. When the next home is part of the plan, search every home for sale in Colorado.

Homes for sale that match this post

Guides

Questions about any home in Colorado? Call or text 303-955-4220. A live person answers.

Quick answers

What is the most common reason a Denver home is hard to sell?

Price set against the wrong comps. A tri-level priced like a ranch or a road-side home priced like the quiet street sits until the price meets the paired sales.

Do I have to disclose foundation repairs when selling in Colorado?

Yes. The Colorado Seller's Property Disclosure asks about structural and soil problems and repairs. Disclose the repair, attach the engineer's letter and warranty, and the repair becomes a selling point.

Does flood insurance kill a sale in Colorado?

No, an unknown premium does. Put the elevation certificate and a current quote in the listing, and apply for a FEMA Letter of Map Amendment when the home sits above base flood elevation.

Can I sell a Denver house with an unpermitted basement finish?

Yes, disclosed and priced as unfinished space, or after an after-the-fact permit with egress windows added at $3,000 to $6,000 each. Appraisers do not count a bedroom without egress.

Is it worth remodeling a 1970s kitchen before selling in Colorado?

No. Replace the panel, scope the sewer, test the popcorn and the radon, paint and light the house, and price below the remodeled comps. The buyer picks the kitchen.

Who buys homes on busy roads in the Denver metro?

Buyers priced out of the quiet street who want the commute, and investors who rent by the bedroom. Price from paired sales on the same road and show the yard, not the road, in the photos.

What is a sold-with-reports packet?

A pre-listing inspection, sewer scope, radon test, engineer's letter, elevation certificate and permit history in one file buyers read before touring. It costs $700 to $1,500 and keeps offers together past the inspection deadline.

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WRITTEN BY
Brian Lee Burke
Brian Lee Burke
Team Leader and Licensed Broker, REALTOR® since 2002, Author

Brian Lee Burke is the founder and team leader of Kenna Real Estate Group, a real estate team at Keller Williams DTC. A licensed REALTOR® since 2002, Brian helps Colorado buyers and sellers navigate residential real estate, new construction, pricing, and negotiation. He is also the author of The Real Estate Playbook and Mastering Real Estate: Your Guide to Becoming a Top Agent.

View Brian Lee Burke’s full profile.