What can buyers and sellers expect in a real estate market that is HOT like the one we are currently experiencing in metro Denver? How does it affect the buyer and seller?
If you have access to a radio, TV or internet it will come as no surprise to you that the Denver real estate market is booming. It’s a great problem to have, but it does create some unique challenges for buyers, and some interesting times for sellers. We at COListings would like to share a little insight about what you might expect from this current market and some of the challenges or benefits you may discover, depending on which side of the transaction you’re on.
Let’s start with you folks interested in selling your home. Is now the right time? You better believe it. Did you know in the last week 1,267 homes went on the market, and 1,619 went under contract?! That’s right, We need listings! We ourselves at COListings have recently put two new listings on the market, and have had multiple offers on both within 12 hours of listing them. Not to mention both came in well over asking price straight out of the gate. Right now sellers have the ability to pick and choose buyers, and analyze which one they feel most comfortable with. Sellers also have more say in paying concessions, and a little more sway on inspection items than they did a couple years ago. If you are thinking of selling for whatever reason you really cannot go wrong right now. The only pitfall you may come across if finding something else to buy on the other side of your transaction. Just like you, the seller of that property has a little more power right now, but with the right guidance by a knowledgeable agent you will do just fine. If you are thinking of selling you really should consider doing it now, before the inventory levels rise and the market slows down a bit. Your home is worth top dollar, and you have most of the power at this point in time.
Well buyers, now you’ve read about the sellers, you probably have some idea of what you’re up against. This market is a bit tougher for you folks, but there are some darn nice homes out there, waiting for you to find them. As mentioned above, if you have a good agent, you should be able to navigate this market and accomplish your goals as well.
Here are a few tips to help out:
Know what you are looking for and be prepared to move quickly. That means if a home within your criteria comes on the market, be prepared to look at it THAT DAY. And be prepared to write an offer. In this market if you snooze, you lose.
Don’t try to lowball offers. Sellers aren’t in that mindset right now. They know they have a product you need, and inventory is low. They are expecting good, solid offers. Don’t insult them by offering them less, unless it’s clear the house is overpriced, or it needs a lot of work. Every home and every situation is unique, but trust your agent to guide you appropriately based on the home.
Be willing to look at alternatives. If you’re set on a very specific location, and you have to have that extra bathroom, you may have to adjust your mindset ever so slightly to account for the low inventory levels. Be willing to look a couple miles outside your target area, or look for homes with the possibility of adding that extra bathroom. Until things level out you are either going to have to adjust, or be patient and wait for what you want.
Trust your agent to know what they are doing, and make sure they do. We have several tricks to get you into a home that other agents may not know about or use. Interview your agent a bit, ask them what they are doing to ensure that you are well-represented and that they know a few things that will entice a seller to pick your offer over another. A good agent will know how to respond to these questions, and you’ll get a sense for their professionalism and whether or not they are right for you.
We don’t foresee this market changing anytime in the near future, so do your due diligence when you are speaking to an agent. Whether you are buying or selling you are going to have your own unique experience, and right now it could be chaotic at times, but just keep in mind that this is a great time to make a move. Home values are going to continue to rise, and that means get out there and buy now while you still get a bit more home for your money. We would love to answer any questions you may have, and help guide you through the process. We try to live by our tagline, and simplify the home selling and buying process. Don’t hesitate to contact us anytime!
Your COListings Team