Barb Schlinker Radio Show
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Your Home Sold Guaranteed Realty Colorado
Buyers seem to have much fewer homes to choose from, what is the status of the current market and why do home buyers need to understand the market conditions? I had the privilege of going out to show homes last weekend and it was quite the journey. After that buyer viewed 10 homes and picked one, they got outbid by another buyer. They were given the opportunity to increase their offer but declined. We are in what we call a SELLERS MARKET. That means, in most cases, the seller gets to choose the best buyer for their home.
A sellers’ market is defined as Less than 3 months of inventory in a price range. Well, we have less than 1 month of inventory in almost every price range below $800,000 The result: Sellers are able to command more for their homes. Other huge factors are really low inventory, Inventory of Available homes is at RECORD LOW, right now only 659 homes on the market. Compare that to 1 year ago there were over 1927 homes to choose from in the Pikes Peak Region. That’s a 54% DECREASE in inventory. As you can see around town builders cannot build fast enough; most are telling buyers they have to wait 8 months for a new home to be built and have less sitting inventory.
Record Low-Interest Rates VA 2.25% wow! Conventional: 2.5% OMG. That means lower house payments which mean buyers can make afford a more expensive home
Increased sales and under contract homes. Buyers in the market now often are facing bidding wars, especially below $400,000, even above that for the pretty homes. Now it’s no longer good enough to offer full price in this market. Sellers do not have to respond to your offer when you ask. You have to expect that you will have competition so make it your best offer if you really want the home! Yes, that means: Over asking price, few if any concessions, maybe even an appraisal guarantee. Appraisal guarantee says: willing to pay $K difference if the appraisal does not agree its work the contract price.
Why buyers need to understand the current market conditions to secure their dream home. Does every home sell with a bidding war? No, they do not. The homes that are:
In great condition Need little if any updating, Are priced appropriately will likely sell quickly
Homes that: Need updating – Buyers do not typically want to inherit a project If a home is priced too high, buyers are afraid to make an offer because the assumption is, they may be facing a bidding war and then it will not be in their price range. Briargate Homes Example: Priced at $425K tons of showing in 1st weekend – no offer Seller lowered the price to $415K Got an offer at $420K For a home seller selecting the right price is one of the most important marketing decisions that can be made. The longer a home sits on this market, the more buyers believe there is something ‘wrong with it’. Being priced Realistically vs Optimistically is always the way for a home seller to command the top dollar. It’s a decision you really need a strong real estate professional to give you the right information so you can make the best decision.
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