2009 October

Help ~ We Can’t Find A Good House!

October 23rd, 2009 categories: Market Trends, Real Estate News

I’m working with a lovely family who is relocating to Denver in a few weeks. We can’t find them the right house and their move date is looming. They want to be here and settled by December.

After a 4 1/2 day marathon of 56 houses, we kind of narrowed it down to two possibilities. These buyers are looking in a fairly significant price point. Not uber high-end, but enough to buy a very nice home in a very nice location.

Theirs is the price point that’s slow in Denver, and now we’ve seen everything on the market. Either the homes were location compromised, floor plan challenged or way over priced. There are two homes they would consider, if they were appropriately priced. As it stands, after a detailed market analysis, both houses are more than $100,000 off the mark. The sellers feel they’re “in the right” and their agents have said if we wrote an offer, we’d be unreasonably low.

So we’re back to square 1. If you know of a house coming on the market, or a For Sale By Owner (FSBO) that we could take a look at, please contact me. We’re looking in Cherry Hills Village, Greenwood Village and Littleton. Preferably under $1,000,000 with 4 bedrooms plus a study and a nice-sized lot.

Thanks for your assistance. They need the keys to their new house soon!

Denver Colorado Real Estate | September 2009 Market Statistics

October 12th, 2009 categories: Real Estate News

In August, Denver had 20,225 active listings available on the market. In September, we were down to 19,834.

With inventory naturally shrinking as we round into fourth quarter, Buyers are left with choosing a currently available home or waiting to see what might come on the market in coming months. It’s not likely that many new properties will be listed from Halloween through the new year, and many buyers are faced with choosing between buying a home they’ve seen or waiting until after the first of the year when inventory will begin to build.

Prices are up slightly from August, and up nearly 5% since last year. From August to September 2008 our average price went down 14%, and it kept trending down for months. We’ve now begun an upward swing just when our market typically begins to cool a little.

We’re likely in for a fairly quiet winter, but not likely to see prices precipitously dropping. By early 2010, we should be well into recovery and buyers will benefit from new inventory.

The big kicker will be mortgage rates, and if (when) they begin to rise, they will rise quickly. That could put a damper on buyers’ purchasing power. If you’re a home buyer, you may not have as much to choose from today, but you know that prices and rates are still low.

Based on the increasing average price trend and shrinking days on the market, you can’t know for sure how long you’ll be on this side of low rates and low prices.

Earnest Money Requirements in Denver

October 4th, 2009 categories: Relocation Tips

Relocating buyers often ask how much earnest money they’ll need when they make an offer on Denver real estate.

My answer? “It depends.”

Some brokers and sellers request 3% some request 10%. Earnest money requests/requirements are entered in the MLS, so your Buyer Agent can tell you what the sellers have requested. 3% is more the norm for mid-priced homes, 10% is extremely high. However, for high end homes, closer to 10% isn’t too unusual.

What the sellers request and what the buyers provide are not always the same amount. When you prepare an offer for a property, consider how motivated you are, how strong you want to appear as buyers and how much money you want to risk.

Keep in mind that your earnest money is not at risk if you legitimately terminate the contract on inspection, appraisal or loan conditions. Make sure your broker and lender are keeping tabs on those dates.

Colorado is a very easy state to contract for purchase. We have state-mandated contracts that all real estate brokers are required to use. We close properties “at the table” in the offices of a title company (not in escrow.)

Earnest money is meant to show good faith on the buyer’s part. Plan to deposit enough to show you’re serious, but not more than you could stand to lose in the event of a default.

Looking to buy in Denver? www.GretchensDenver.com gives you access to nearly all listed properties plus the ability to map them! Bookmark the site today!