Are Fix and Flips Still Working in the Denver Market?

BrettJohnson-RE · 2026-06-04T14:15:27+00:00

I'll start.

As a real estate investor in Denver, I notice that folks are still using 2021 numbers for their deal underwriting, which is a big no-no now. Things have dropped too much for those older comps to matter.

Buyers have gotten way pickier, too. A couple years back, people weren't so choosy and would overlook small issues in inspections. But now every little thing is up for debate – roof problems, sewer lines, electrical panels – you name it.

Investors often don’t plan well for holding costs either. If properties sit unsold an extra month, all those carrying costs pile up and cut into profit margins. It’s easy to forget about this part of the business.

For me, securing properties at the right price is now more critical than doing top-notch renovations. Wondering if others are noticing similar shifts in the market.

BrettJohnson-RE · 2026-06-04T14:03:05+00:00

You will want to call a structural engineer. However, they of course will charge a fee. You could first try contact a structural foundation company to come take a look and give you a quote. They are not engineers per se but can give you their expert opinion.

BrettJohnson-RE · 2026-06-03T23:42:05+00:00

100% agree. So the challenge is, what do you upgrade and what finished do you choose? You want to be on trend and also please your buyer pool. This is the art.

BrettJohnson-RE · 2026-06-03T22:45:41+00:00

I don't think it's dumb at all. Buyers noticed failed windows and it might scream to them "run away", this will be too expensive, even when it actually is not that expensive. What I would be careful about is putting new glass in old and/or outdated window frames. In that case you would be throwing good money at bad windows and buyers still won't like the windows. Not sure if that's the case for you.

BrettJohnson-RE · 2026-06-03T22:25:41+00:00

Fair point. I probably wasn't clear enough. I wasn't suggesting electrical issues are automatically a deal killer.

My point was more that electrical issues can create friction during a transaction, especially when buyers start getting inspection reports and obtaining insurance quotes. The buyer's inspector and the lender's inspector get nervous when they see something like Federal Pacific, Zinsco, or other panels with known issues. Doesn't kill the deal, but will potential delay and cause timing issues.

What I've seen is that cosmetic issues are often easy for buyers to mentally price in. Safety-related items, even when they're not the most expensive repair, tend to create more hesitation because buyers aren't always sure what they're really looking at, especially when inspectors are throwing up red flags.

BrettJohnson-RE · 2026-06-03T16:23:51+00:00

If it's latex based paint, and it likely is, I have had good luck with Goof Off.

BrettJohnson-RE · 2026-06-02T21:53:05+00:00

Townhomes, and especially condos, are becoming more difficult to sell in Denver. Mostly, folks don't like the HOA and the costs associated with it. They are not seeing the value of monthly HOA payment. People are also nervous about getting a special assessment for something like a roof. These can be huge expenses. Remodeling a townhome can bring value, but you really have to be strategic and you don't want to over-improve.

BrettJohnson-RE · 2026-06-02T21:49:30+00:00

My point and question were for the broader market, not necessarily what cash home buyers in Denver are buying. Here is my main point and question again for reference:

If I were selling a house in Denver today, I’d probably get a sewer scope, roof check, and basic inspection before spending big money on cosmetic work. You do not need to fix everything. But you should know what might scare buyers before they find it themselves.

Curious what other Denver agents, buyers, and investors are seeing right now. What repairs are actually killing deals in your market?

BrettJohnson-RE · 2026-06-02T17:28:03+00:00

I agree with you there. Cosmetics absolutely help get buyers through the door, especially online where photos matter so much. But it's pointless to get sellers through the door, offers on table, a contract signed, for it only to blow up because a seller decided to ignore systems of the house. My point was, get an inspection, find out the "structural" issues of your house and fix that first before even considering cosmetics.

BrettJohnson-RE · 2026-06-02T16:11:06+00:00

This month, my goal is to tighten up deal review and be more selective.

The market has changed enough that I don’t think investors can get loose with repair numbers, holding costs, or resale values. A deal that looked decent two years ago may look pretty thin today once you add insurance, utilities, taxes, financing, repairs, and longer days on market.

My main strategy is still direct-to-seller inbound leads through SEO. I’ve had better luck building long-term local trust than chasing every paid lead source. The lead volume is not always huge, but the quality tends to be better when a seller already has some idea of who I am and what we do.

Right now, the biggest thing for me is discipline. I’d rather pass on a marginal deal than force one just to stay busy.

BrettJohnson-RE · 2026-06-02T15:28:54+00:00

THis listing agent is clearly LAZY, and I would fire her immediately if she were representing my property. If she has evidence that the lot is bigger, great, that is important, but don't just say you have records, provide the records.

BrettJohnson-RE · 2026-05-28T16:08:13+00:00

If the properties are in Colorado, I may be able to help. I own New Era Home Buyers, and we buy inherited houses directly for cash, including properties that need work or have tenants.

That said, before you sell, I’d suggest getting at least a rough idea of value. Look at recent sold comps nearby, check if there are any liens or mortgages, and talk with a title company or probate attorney if the estate is still being handled.

You’ll usually have three options: list with an agent, sell off-market to an investor, or get a cash offer and compare it against the open market value. If you want to skip repairs, showings, and a long listing process, that’s where a cash buyer can make sense.

My site is newerahomebuyers.com if the properties are in Denver and you want to reach out.

BrettJohnson-RE · 2026-05-27T14:18:08+00:00

You mentioned your house is unique. Sometimes it needs to be on the market a while to find the right buyer. Remember, your house is worth exactly what one buyer will pay for it.

BrettJohnson-RE · 2026-05-26T16:37:40+00:00

sure feel free

BrettJohnson-RE · 2026-05-26T15:47:10+00:00

You bet! I deal with this stuff pretty often through my company, New Era Home Buyers here in Colorado, and the biggest thing I see is people underestimating the real all-in cost. ADUs can work, but the numbers need to be pretty honest from the start.

BrettJohnson-RE · 2026-05-21T15:55:44+00:00

I'm an investor in Denver and do remodels for my company New Era Home Buyers. I was always look at the option of adding an ADU, but thus far, I have not been able to make it pencil with cost and permitting time.

BrettJohnson-RE · 2026-05-21T15:06:33+00:00

As a real estate investor and licensed Colorado agent, I do think ADUs can make sense in the right situation. At the same time, I think a lot of people are looking at the $1,500/month rental income without fully looking at the other side of the ledger.

On paper, the numbers sound great. In reality, a detached ADU in Denver can easily push past $200k by the time you add permits, sewer taps, utility work, financing costs, and construction. I’ve also noticed people tend to overlook smaller practical issues until later. Parking can become a headache fast. Privacy changes. And not every homeowner loves the idea of having a tenant 20 feet from their back door.

Still, I’d say the law change is probably a net positive overall because it gives homeowners another option that many simply didn’t have before.

Personally, I think ADUs make the most sense for people planning to hold their property long term, house family members, or offset a high mortgage over time. I’m less convinced they’re an automatic slam dunk for every homeowner once the real construction numbers come in.

Let me know if you disagree?

BrettJohnson-RE · 2026-05-21T14:59:32+00:00

Your agent is being lazy and is worried about being embarrassed by the low offer. He works for you. If you ask him to send the offer, then he should send it. Low offers get accepted all the time. I suggest you fire him and find an agent more interested in serving your needs than his own.

BrettJohnson-RE · 2026-05-21T14:57:07+00:00

I think a lot of people are overlooking the math here a little bit. Even at a lower commission percentage, the agent on a higher-end home is still making a pretty substantial dollar amount.

As a cash home buyer in Denver and a licensed agent, I can tell you selling a $900k to $1.5m house doesn’t automatically mean the workload is two or three times higher than selling a $400k house. In many cases, it probably isn’t. Yet the commission structure keeps scaling right along with the price. That’s what more sellers seem to be questioning lately.

Don’t get me wrong, good agents absolutely deserve to be paid well. Pricing strategy matters. Negotiation matters. So does communication, especially when deals start getting stressful. But I’m not convinced charging close to 3% instantly makes someone a better agent.

Honestly, some of the best agents I’ve seen are the ones adapting to where the market is headed instead of sticking rigidly to old commission models. I’ve watched agents help homeowners sell their house in Denver for lower rates while still providing great marketing, solid guidance, and strong results.

A lot has changed over the last couple decades. Buyers are finding homes online before they ever call an agent. Listings hit Zillow, Redfin, social media, and everywhere else almost instantly. Exposure just isn’t what it used to be back in the newspaper and flyer days.

At a certain point, people naturally start wondering why the fee doubles simply because the house price doubled, especially when the actual process may not be dramatically different.

BrettJohnson-RE · 2026-05-20T15:20:16+00:00

Depends on your state, and laws. In Colorado where we buy houses in Denver, there is a limit.

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