Buying a house amidst the flurry of the Denver seller’s market? All you hear about is a seller’s market and you are slowly running out of patience. If you just lost the bid on the perfect home, frustration definitely sets in and patience wears thin. So how does a buyer stay focused on the prize in todays Denver seller’s market?
Getting Tired Yet?
And “buyer’s fatigue” is rampant, said Andrew Abrams, chair of the Realtor Association’s Market Trends Committee. “Like a marathon, buyer fatigue has slowed people down but has not stopped anyone from crossing the finish line,” Abrams said in a statement. “Listings continue to slowly hit the market, while buyers continue to gobble up properties as soon as they do.”
One interesting fact from May’s market report is that sales volume soared 88% over May 2020, to $3.32 billion. With all that, buyers will need plenty of “resilience and strength to overcome this tough seller’s market,” Abrams said.
The WOW! Market Effect
We are in the midst of the hottest real estate market in a generation. Homes are selling at record pace, and there’s fierce competition among buyers. It is established in many areas that there’s limited housing supply to meet growing demand.This phenomena of “extreme seller’s market” continued in May for Denver’s residential real estate. The average sales price continuing to smash records with a small amount of inventory for a market the size of Denver. The amount of days a home stays on the market is rapidly dwindling, according to the Denver Metro Association of Realtors. in June 2021 shows a small return to normalcy as the month end inventory has increased over 50 percent in the Denver Metro Real Estate Market.
Reuters “suggests demand for housing will remain strong on low borrowing costs while a lack of supply squeezes home prices ever higher.” So, most buyers are caught thinking that prices are going to drop but expectations are that prices will increase.
Some buyers are thinking that if they bump up their price range, there would be less competition. What is happening is that going up in price doesn’t reduce the number of people battling over the good listings. So, expect records to continue to be broken in these days of post pandemic real estate sales. Continue to be patient but persistent, the path to your dream home is around the corner, even if it means you are not getting the deal of the century.
How to Stay Focused in a Denver Seller’s Market
“It’s crucial to sharpen your home-buying tools if you want to compete successfully,” says Forbes Advisor in an article published May 26, 2021.
- Preapproval is an important first step to snag a home in today’s rabid market. All experts agree that buyers should get a mortgage preapproval before beginning house hunting because it proves a lender has verified finances and creditworthiness and willingness to purchase is established.
- To bid-up is the new norm, multiple—sometimes dozens— of bidders —on one home is a realistic situation. This is real life in housing markets across the U.S. This means buyers probably shouldn’t look for homes at the top of budget. Almost assuredly someone else will outbid. It is advised to search for homes below your target price point.
- Buyers should manage to look beyond the cost of a home. You and an experienced agent should find out what is important to the seller that might prove advantageous, such as closing earlier or offering short term rent back. Any offer is on the table today.
- Think about expanding your search from the most sought-after neighborhoods which come with the highest price tags. For those buyers who seek homeownership, and can be flexible, they could trade a different neighborhood over a coveted ZIP code.
- Do not fall in love with just one house, it can lead to major disappointment. However, don’t run the other direction at the first sign someone else outbid you or dropped a tempting all-cash offer. All real estate agents with some experience can attest to the fact that deals fall through every day so be prepared for second choice.
A Major Asset Is the Best Real Estate Agent Possible
Every buyer’s secret weapon is finding the best experienced specialist/agent/broker to help guide a buyer through the maze that is todays Denver seller’s market market. They’re not only great negotiators and have a solid understanding of the neighborhood you’re interested in, but they also have terrific connections, which will benefit you.
The specialists at Katchen Company make their living dealing in their chosen market area. They actively promote their business and themselves in their area. They make it a point to analyze the transactions that have closed and the properties that are currently available on the market. By studying the information available on the multiple databases that the company subscribes to on a daily basis, Katchen Company’s real estate practitioners can identify the newest trends in the market. It is this information that a consumer wouldn’t be aware of by casually browsing Internet listing services.
The key to today’s real estate world is for buyers to remain patient but persistent. If you are contemplating entering the Denver seller’s market connect with a specialist at Katchen Company. Let them be your guide.
Being a Buyer in a Denver Seller Market Video– *Watch Kathy and Ed Boyle talk about being a buyer in a sellers’ market