Meet with Success in Denver's Real Estate Chaos
What does it take to meet with success in Denver's Current
Real Estate Market?
A lot more than you think...
Patience, persistence, action, inventiveness, thinking outside of the box. Did we mention patience? These are just a few keys to landing a contract on a home in Denver.
What is happening with the market? Why is it so crazy? 2 simple words. Supply and Demand. For homes under $400, 000, there are far more buyers at the moment than homes for sale. Also, mortgage rates continue to rest at an all time low.
The formula for buying and selling a home went out the window in early 2013. Now is the time to think cleverly. This market is not for the faint of heart. Buyers need to be well versed and armed for beating out the competition. If this intimidates you, you'd best hold onto your current residence until the market settles down.
How can a buyer get the upper hand in a bidding war of sorts?
Full price cash offers are still the best combination for winning a contract and are typically "moved to the front of the line" for consideration. Sellers need to find the buyer that is most likely to stay with the contact through closing. This market is creating a "purchase before a preview" movement which does not always bode well for a home closing.
Running a close second for the lead are buyers that are pre-qualified for a mortgage and have the cash on hand to cover any shortfall between what they offer and the appraisal. This is quickly becoming an item of importance as the number of potential buyers and offers are upping the ante at each home sale and some homes are selling for much more than they appraise at.
Here are a few other factors to help ensure your buying success:
Patience & Persistence: Ask anyone currently looking to buy a home or someone that has recently bought a home how many offers they had to make in order to land their current contact. Most likely you'll find they have lost a bid, or two, or more before meeting with success. Your new home is out there, you just have to be patient until it appears on the market.
Action: Did we mention earlier that this market is not for the faint of heart? If your Realtor® calls you about a home that meets your criteria, if you are a serious buyer, you'd best drop everything and view the property. If you hesitate or wait until a better time the likelihood of the home still being available are very small. Many home in today's market are under contract within hours or days.
A practice becoming ever more popular for sellers is to have the home listed on a Thursday, let showings occur over the weekend, and then review all offers on a Monday with the agent and decide on the "winner".
Be clear on what you are looking for and consider being flexible on what you need from a home.
Inventiveness/Thinking Outside the Box: Talk with your Realtor® about what strategies they have to help you land the home of your dreams.
Always have your agent check to see if the seller will take backup offers in case the chosen contact falls through.
Consider letting the seller(s) stay in their home and pay you rent until they find a replacement home.
This one is a bit risky but buyers also can improve an offer's chances by waiving their right to demand sellers repair problems found on inspection. (a common practice in a buyer's market.)
Have your agent review in detail the requests of the sellers and do your best to meet these requests.
There has never been a more important time to have resources you can count on when it comes to buying and selling a home. The real estate market changes at a rapid rate. It is my pleasure to make sure that you always have the correct information you need to make the best decisions for you and your family.
Contact me at: 303-229-2450 for a
FREE market evaluation.
In the meantime, you can find additional information and articles on our website: http://theurbanmountainteam.com/
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