If you are in the market for a home in Colorado right now, you know that the competition is fierce. With a low inventory of available homes and increased demand for properties, real estate across the Front Range is selling fast. Buyers on the hunt for their next house must constantly be ready to look at new listings as they come onto the market, make swift decisions about where they want to live, and be aggressive with their offers.
If you, like many other buyers are wondering why the marketplace is so hot, here’s your answer.:
According to the Colorado Association of REALTORS® (CAR), the inventory of available single family homes in Denver County alone was down 74% in March compared to the same month in 2020, leaving just 244 homes on the market. This trend can be observed in other nearby markets as well. In Boulder County, inventory in March was down 72% and in Douglas County inventory was down 80.7% compared to March of 2020.
The minimal number of homes available for people to purchase is no match for the tidal wave of buyers that want to call Colorado home. Our state’s unique balance of outdoor recreation options and city attractions have made Colorado one of the hottest, and most competitive destinations in which to buy homes over the last year.
So, what’s a buyer to do? The real estate experts at LIV Sotheby’s International Realty have some tips to share that may help buyers succeed in the marketplace.
Consider Starting at a Lower Price Point
Thanks to the currently low interest rates on mortgages, consumers have more buying power. For many homebuyers, especially first-time buyers, this means that they can finally afford to purchase their dream home. But proceed with caution. Most homes in Denver Metro are selling for over their asking price due to intense demand for real estate. By looking at homes that are slightly below the price that you are comfortable paying, you ensure that you will have enough to compete with other buyers.
Establish a Connection
In a world where home fly off the market at lightning speeds, the innately emotional process of buying a home has become strictly transactional. Buyers and sellers don’t have time to build an emotional connection with other party involved in the sale. Anyone can write an offer over asking price but sometimes sellers want to know that the buyer purchasing their home will appreciate it as much as they did. Working with a broker who can articulate their client’s feelings about the home to the sellers can make your offer more appealing, even if it is similar to others.
Have a Plan B
With so much competition in the marketplace for a relatively limited number of available homes, buyers need to understand that they will likely have to make offers on multiple homes before they “win” one. That being said, if a buyer finds a house they love and another how that they really like, make offers on both. Having a backup plan if the first offer isn’t accepted is good strategy for increasing your odds of success – especially for buyers who are looking to purchase a home in a hurry!
While these tips will may help you secure the home of your dream, the most important step is working with an expert real estate broker with an expansive knowledge of the community and a history of success. Allow the brokers at LIV Sotheby’s International Realty to help you reach your lifestyle goals. For all your real estate needs, contact LIV Sotheby’s International Realty by calling 303.893.3200 or visiting livsothebysrealty.com.