After almost 5 years of a strong sellers market in Denver real estate we are seeing an adjustment and a shift towards a buyers market forming. Now inventories are still not to that full buyers market level just yet which would be about 12,000 active but we are closing in. What this means is homes are taking a little longer to sell which allows buyers a little more choice and a little more time to decide. I think this is a more healthy situation for all involved. If you are on the sidelines now its a great time to get in the game and take a look if there may be a match for you out there for your next home.
A great new property sale up in Westminster with some out of town clients relocating to the Denver area. This almost new home was 4 beds and 3 baths and finished out really nicely with an additional study on the main floor as well as a main floor master.
What a great team of real estate colleagues I have at Madison & Company. This group has over 60 years of experience combined in the Denver real estate market. We meet weekly to share best practices and ideas on how we can better serve our clients.
Well that is kind of a tall tail but things in the Denver housing market have shifted. We have seen a dramatic increase in days on market on many properties which has slowed things down some. Buyers are being more particular and taking a bit more time so the 2-3 days on market and multiple offer bidding wars has subsided a bit as of late. It is not our of the ordinary for a 500k home to be on the market 30 days now. This may create a more "healthy" market and balance things out to bring a little more inventory to the picture.
One of the things we recommend when purchasing a new home is to have the sewer line checked out. Bad things can happen if there is an issue in the line from the house to the main line at the street. We ask our insurance professional Adam Lauber how insurance may cover an issue if it backs up.
In a competitive market like Denver is right now slanted towards a sellers market there are other ways of winning the bid on multiple offers rather than price. So what if you are 10 or 20,000 over asking and still competing. One way of sweetening the offer is to use your Inspection as leverage. I like to coach my buyers on options and how to look at inspection is one of them. When you are buying a "used" house - not brand new from the builder there are going to be things that need fixing. Some small and maybe some larger items. We usually talk about safety and health items. Maybe its radon or an electrical problems but knowing going in some things will come up on the report. You may considering writing in the offer some language that may set a minimum limit to what you may ask for. Maybe its you won't ask for any items below $1,000 repair value. This may entice the seller to look more at your offer and not get nickel and dime or fixing things after inspection but yet still protect against larger cost items.
One of the biggest decisions we can make is buying a home. If we have kids it can be even bigger as we want to know what school district the home is in. I always recommend to my clients to do the research and find out what is most important to them. In Colorado many districts are open enrollment so it may not matter as much where you buy your home it may just be location preference. One site that has been recommended to share is www.schoolgrades.org where you can do some good research. No matter what, when buying a new home be sure to take your time and do your diligence and get the answers you need.
We ask our Go To lender JP about loan approval for the self employed. Sometimes this can be tricky for people who own their own business but it is very doable. JP talks about some of the options we have to get the self employed approved for a mortgage.