If you are scratching your head, wondering how the Metro Denver Real Estate Market got to this point, we can help clarify!
My esteemed colleague, and well seasoned lender John "JJ" Jeffrey (NMLS 201863) with Westerra Credit Union together with my furry assistant Shangela and I, attempt produce satirical re-enactment of the current real estate market in the Greater Metro Denver Area. Please keep in mind as a disclaimer - this was performed by non-professional actors –no judgement!
What are your "take aways" from this video? There are several points made so keep reading on:
1. If you are even considering buying a home, you must get prequalified first.
In the current market, a listing agent and the seller will most likely not consider your offer without a prequalified letter from a reputable bank. Many sellers prefer a prequalified letter from a local Colorado bank and a well-known, reputable loan officer. Why? The listing agent and seller share the same goal: make it to the closing table with as few obstacles as possible. Be sure to interview your lender and their institution, and check their references before signing the contract.
2. The competition for buyers to get under contract has dramatically increased.
As a buyer, the prices of homes have risen as the inventory has fallen to an all time low. The demand for purchasing homes has slightly increased despite of COVID. The record low interest rates have enabled many people to increase their purchasing power and placed them on the market looking for houses. It is now common for offers to come in well above listing price - sometimes even 10% above listing price - especially if the location and condition appeal to the homebuyer. Many homebuyers are signing "appraisal gap insurance clauses" in their purchase contract with the hope to get under contract. This clause basically states that should the home appraise for less than your offer, you agree to bring the difference in cash to closing. In other words, the lending institution will not loan you the full amount. It is taking extra effort for buyers to be the winning offer.
3. It has never been a better time to sell your home.
It is without question a sellers market! Sellers beware, as there are still a number of things to consider to maximize your net-sales price (after realtor fees and closing costs) in your pocket! A) Be sure to use a Realtor that can stage your home. Statistics show homes that are professionally staged will ultimately show better, sell easier, and sell for more money. This means more money in your pocket! B) Work with a realtor that can help you identify items that need updating in your home. You may have been considering remodeling your kitchen, putting in new flooring, or updating your bathroom. It is important to know which projects you will earn $2 for every $1 you spend. Be sure to ask your realtor if they have experience with this. C) You are going to need a Realtor with strong negotiation skills. Ask them about their prior experience trying to negotiate price and getting through difficult inspections. Remember as a seller you will always have to disclose any and all latent defects with your home to your Realtor, and your Realtor must disclose any and all knowledge to the buyer’s agent. However, having a Realtor with good negotiation skills can help the transaction go smoother and have less impact on your wallet.
Want to know more information? Have more questions about buying, selling, refinancing or getting prequalified? Chadwick, Shangela and JJ are here to have an open conversation with you and discuss your needs and ideas. Please feel free to call our hotline 720-666-9805 or email us directly.
Email Chadwick for Selling or Buying Properties: chadwick@denverrealestatepro.com
Email JJ for Refinancing, Loan Qualification or any Financing Needs: jjeffrey@westerracu.com
Remember, we are here to help you so that you can make the best, well-informed decision! It's why we love what we do!
We look forward to hearing from you!
www.denverrealestatepro.com