Christian Mulhern: How Marijuana is Impacting Denver Real Estate

The legalization of marijuana in Colorado has been an exciting adventure. It has brought success to many in the marijuana industry, but has also put a lot of stress on the housing market.


Colorado's population increased by 101,000 in 12 months.


Here's how it's impacting buyers and sellers... 




From the buyer’s agent side - the fact that people are flocking to Denver  has created quite an issue for many buyers. If you want to buy a home in Colorado, get ready to compete. At this time we are seeing listings go under contract in less than 72hrs on the market and sell for well over asking price. With the amount of people moving here, we are seeing multiple offers, which continues to raise home prices. When I am representing the buyer I do everything I can to make our offer stick out. Here are some of the ideas I use in a multiple offer situation.


More Cash Down  - I encourage them to always put as much cash down as possible and close quickly, or buy the property with all cash. The more cash down the stronger your offer looks. This makes the loan smaller and also shows how serious the client is about buying the home. In regards to cash I also recommend they up the earnest money by at least 10% depending on the purchase price.


Waive Contingencies - One option is to buy the property “as is”. Another option is for the buyers to bring cash if the appraisal comes in lower than contract value. In extreme cases, I’ve had buyers remove the loan objection deadline. In Colorado this is the last opportunity to get out of contract and get your earnest money back, making this decision extremely risky.


Pay Closing Costs & Title Fees -  Some of these costs are as small as $200.00, which is usually split between buyer and seller. If the buyers are willing to do this and can afford to, I always recommend it. One other small detail that can help is a letter to the seller along with your offer. We call this a love letter. Something sweet about how you see yourself growing in the home, how well your going to maintain it, and so on. Of course there are many ways to sweeten the deal, but these three may help your offer stand out amongst many.


From the listing agent side - The Colorado market is absolutely a sellers dream market. People are doubling and tripling their equity by selling in this hot market. Some investors of mine are buying homes, renting them out for a year, and selling them a year later for a huge profit. Rent in Colorado is on the rise as well and is continuing to go up. There are lines of people turning in applications to rent, people paying more than the rental amount, and even putting twice as much down for a damage deposit. Sellers are getting away with not repairing all if any inspections issues, and playing the game at their pace. It's extremely easy for a seller to win in this market. Denver is extremely low on inventory creating a big problem as people are fighting over living spaces.


There is simply not enough room for everyone to move here and the market is feeling the pressure.


Recently, I listed a piece of land for 2 million dollars, two hours south of Denver that sits on just under 1,000 acres. What makes this land interesting is that the county it sits in allows for marijuana production. Not only that but it has an airstrip that has been FAA approved. This type of property is very hot in Colorado as growers are always looking for space to cultivate their crops. Once the product is made it can be legally sold to stores and made ready to sell to the public. The buyers interested in the property want to divide up the acreage into 10-acre lots with each home having its own access to the runway. A few years ago this idea would have seemed out of this world!



Denver was voted one of the top places to live in the country and is the most expensive city that's not on a coast. With the mountains, one of a kind views, skiing/snowboarding, hiking, elite sports teams, lakes, parks, shopping, abundant restaurant and brewery opportunities, combined with the 300 days of sunshine this state sees, no wonder it's a top living destination!



For more information or questions about Denver Real Estate,

feel free to contact me: 

Christian Mulhern