Fortunately, 26% more homes came on the market this past week than when I sent you last week’s update. Right now, homes that are priced right and look great are receiving 30, 40, or even 50 offers. Homes in less-than-ideal condition are getting six to 10 offers. As more homes hit the market, pressure on buyers may ease somewhat; however, with Spring arriving soon, more buyers will start looking for homes.
A CoreLogic study showed that 60% of all homes sold in Metro Denver last month sold for more than the asking price. That number is somewhat skewed by high-end luxury homes. The same study shows home prices appreciated 19.1% over the past year in Metro Denver.
The market is obviously still hot and continues to favor sellers. We expect that to continue even with more homes for sale.
Six ways buyers are making their offers more attractive.
Offering a high price and a large down payment. Sellers want to earn the most money possible and the price is often the key to getting an offer accepted. A large down-payment shows that the buyer has the financial wherewithal to make it to closing.
Limiting inspection. Buyers commit to limiting their negotiations after an inspection or even say they’ll purchase a home no matter what is revealed. Other buyers are offering to terminate an offer or move forward – but not negotiate – after an inspection.
Offering to close quickly – Many sellers want to get their homes sold as quickly as possible. When this is the case, buyers are moving up closings. If you’re getting a loan, how fast you can close may depend on your lender. Some can close as quickly as 15 or 21 days.
Waiving the right to an earnest money refund – Here, buyers say that the seller can retain their earnest money even if they terminate the contract. Often the earnest money will be non-refundable after a milestone like the inspection.
Covering any appraisal gap – Lenders hire appraisers to value properties and won’t loan money for more than the appraised value of a home. If an appraiser values a home at $650,000 and a buyer offered to pay $700,000 there’s an “appraisal gap” of $50,000. Buyers are offering to bring cash to the closing to cover any gap between the appraised value and the price they’ve offered to pay.
Giving sellers free rent-backs – Sellers who plan to purchase a home in this market face challenges just like the people offering to buy their homes. By allowing a seller to live in their home after closing – often rent-free – buyers give sellers time to find a home and get under contract.
Earn thousands more when you sell your home. Our team provides superior service at a low cost. If you plan to sell your home soon, give us a call or schedule a consultation. Reach David and Tom at 720-782-2468.
Metro Denver Real Estate Market Activity
During the last week:
New Listings – 995
Back On Market – 165
Price Increase – 182
Price Decrease – 131
Pending – 1379
Withdrawn – 50
Closed – 1456
Expired – 143
New Listings – 775
Back On Market – 151
Price Increase – 117
Price Decrease – 109
Pending – 1376
Withdrawn – 62
Closed – 1032Expired – 70
Based on data from REColorado®
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