Buyers Beware - Market Turnaround Ahead
June 8th, 2008 Categories: Market Trends, Real Estate News, Relocation Tips
Multiple offers? New listings gone in under a week? Is this the Denver real estate market?
Yes! In our medium price ranges, $250,000 to $800,000, things are going fast. I’ve had several brokers in my office tell me that they’ve been in competitive bidding situations recently. More than one - sometimes they’ve actually had two or three competitive bids on houses for the same buyers. That must be surprising for buyers who read the main-stream media and think they should still be underbidding for everything.
Buyers - you need your broker’s advice more than anytime now. Ask to see recent comparable sales in the neighborhood you’ve identified before you make an offer. Sometimes a house is already competitively priced, or at least well-priced. Sometimes there’s room for a bit of negotiation, sometimes there’s room for a lot.
Another important piece of information to know about a house is how many days the house has been on the market. A short time on the market usually indicates less room for negotiation. A short time on the market and well-priced means very little room for negotiation.
If the house you love is also in tip-top condition, recently remodeled or brand new, then there is more of a chance it will sell quickly.
When we see multiple offers, there are usually 3 things in common:
- They’re well-priced.
- They’re in Central Denver neighborhoods - not so much the suburbs.
- They’re in top showing condition.
Buyers who buy today are going to look back a year from now and find they’re sitting in the cat-bird seat. That’s when we’ll all realize the market turnaround began in the summer of 2008.
I am happy to hear things are picking up. We need to see that in a lot more markets and I think we will. My market, Austin, is slow because of people not being to sell in other markets.
Hi Sam - Austin is such a great city, I’m sure it won’t be long now before you see a bit of a bounce. Are you tagged as a declining market by Fannie/Freddie? Denver has recently been removed and that’s helping us.
Wow,
That’s great to hear! In LA County there are pockets doing really well, and some getting ready to literally implode.
In some neighborhoods REOs represent 75% of active listings, which is really hurting prices and getting worse.
I just recommended to a prolific probate listing broker that he might want to have his clients consider carrying paper to get a decent price (especially on the fixers) and then sell the note.
Even selling the note at a steep discount, they’d come out ahead usually.
I always thought I might live in Colorado some day . . . the mountains have always called to me.
You guys go!!!
Hi Dawn, 75% REO’s is a huge number. We had similar stats in the late 80’s here in Denver. I’m glad to hear that other sectors are doing well. My parents live in Orange County, and that area seems to be holding it’s own still.
More info here…
Good job narrowing down all the information….
This is something anyone can appreciate. Thanks for a great read!
Thanks for reading, Wilson!