Strategy in Red Hot Markets
* Updated Version
The Denver real estate market has been notoriously competitive over the past few years due to the influx of population, Coastal Covid exodus, and historic interest rates. It is rare to hear any conversation regarding the Denver market without someone saying “isn’t it impossible to buy there?”. The hype continues to be trending in most buyer’s minds. The hype contains elements that are accurate, but buying a home here in the Denver Metro Market is far from impossible. Here are some simple action items that have helped my buyers:
Prepare to move Quickly - Have your lender letter or proof of funds in hand. Most homes are under contract within 12-72 hours of hitting the market.
Be ready to go Above Listing Price - Low Inventory and Incentive to Price Low means List Price is an educated guess - to remain competitive - most offer prices are $30-100k above List Price.
Remove some Inspection Contingencies - Not recommended in all situations, but recently most of my accepted offers allow for inspection to occur (in case of major items) without negotiating on inspection items. My construction background and General Contractor’s license provide value in these situations to determine if this strategy makes sense, this is done on a client by client basis.
Quick to Quicker Closings - A strong lender relationship is extremely helpful. A standard closing in Denver is 30 days from being under contract, a simple adjustment by your lender to 14-21 day closings can be a game changer and the difference in a multiple offer scenario.
Remove your New Loan Termination Date: What does it mean? Essentially, you remove your new loan termination date (contingency) from your contract, which means if you cannot get the loan to purchase the property your earnest money becomes non-refundable. It isn’t always feasible for all clients to put their earnest money on the line, yet it can be a very viable and attractive option in this competitive environment. Consult with your lender or real estate agent - again, this is not recommended in all situations.
Remain Flexible and Open - Each transaction is unique to the specific buyer. On average it takes 3 to 5 offers before going under contract. Across the board, staying patient, open, and flexible to strategies in a competitive market allows for home ownership to quickly become a reality.
These tactics have been consistently working in my most recent offers and is very appealing to sellers.
Educating my clients has become a mainstay in all my client to agent relationships. This trust is built through a very holistic process, and naturally forms friendships. Although the Denver market can feel overwhelming and maddening, I have yet to have a buyer NOT find their home. My goal is to make every transaction simple, light, and comfortable. Cheers to working together someday!
Sincerely,
Mayor Mike
