Denver Real Estate News
Home buyers who have been experiencing the joys of trying to find a home in the Metro Denver area are finding it's not so easy anymore. Serious buyers have flooded our market, taking advantage of the insanely low interest rates, and reasonable prices.
The vacancy rate for renters is at an all time low (since they have been keeping records) making finding a rental home a challenge also. The change in financing terms from zero down payments to now requiring a 3.5% or more down payment has left many would be home buyers scrambling to save while having to pay increased rent!
Homeowners who got caught in the economic down turn losing their jobs and sometimes their homes are all competing in the rental market.
Competition for Housing of any kind in Metro Denver is tough!
The facts speak for themselves, but it is a hard cold reality when a home buyer finally is in a position to qualify for a home, but fails to get the property they want because the competition is squeezing them out!
The rules have changed. To be a successful bidder one needs to acknowledge the changes!
- The listing price is now the STARTING PRICE in most cases
- HUD homes are selling well above list price, often times for CASH
- Sellers can and are being picky. Buyers need to tender serious earnest money and show proof of funds and/or qualification
- Be prepared to buy the home "as is". If you go into negotiation to fix piddly things you risk having the seller wait for the next buyer. In this market that might not be too long of a wait!
Bottom line you have to be better than the next guy in line. You need to be prepared with financing, earnest money and pay more. You need to outshine and outsmart your competition.
It's a war out there.
As with any statement all these rules may not apply. The higher the price home this more latitude you have for braking the rules. i.e. if you want to purchase a $3.5 million home where there is a 3+ year supply you have room to negotiate! As always Real Estate is Local.