BUYER'S RESOURCE »
In last week’s blog we share how the current real estate market conditions are softer than we’ve seen in the past several months. If you have not read that article yet, we recommend you pause and do so now. In this article we are going to focus on what this means for homebuyers in the Denver metro area.
Buyers in general have been on a wild roller coaster ride in 2021 and have had very little time to breathe. Now might be the opportunity for buyers to slow down, take a breath, and have a more relaxed buying journey than past buyers.
With the higher level of inventory and many buyers getting out of the market to focus on other things, like back to school or the upcoming holidays, many homes are not selling as quickly as they did before. Most homes are also not receiving offers that are going crazy high over list. These two factors mean that buyers that did not have the means or simply did not want to offer an appraisal gap may have a higher probability of getting an offer accepted without one. Buyers may also have the opportunity to be pickier and may even feel comfortable letting a house that fits most of their criteria go in hopes to find one that fits all of their criteria. Before, many buyers would almost settle on anything they could get an offer accepted on. Having more options to choose from when shopping for a new home is not the only luxury buyers are enjoying right now.
Due to buyers having less offers to have to compete against, they are not having to give up so much right from the beginning. Before, an offer that was not waiving the appraisal, inspection, or basically everything would not have been considered a very competitive offer. Today buyers are able to obtain more normal options during inspection and when it comes to the appraisal. This means as a buyer you don’t have to accept the house as-is or walk away, you have the right to negotiate with the seller to make repairs that might come up during a home inspection.
The current market conditions feel more “normal” for buyers and definitely give them more options and time to think before deciding whether to purchase a home or not. This does not mean that all of the power is in the buyer’s hand.
It is very important to understand that even in the slower market we’re in, it’s still a seller’s market. If a home is priced correctly and marketed correctly, it is going to likely still sell within the first weekend, and even over list. However, a seller and listing agent have to be realistic with its value; they are no longer able to “push” value and still get multiple offers. Buyers have choices and will go for the option in the neighborhood that is priced correctly.
By working with a TK Homes agent, you will know if homes you’re looking at are priced correctly, and therefore might be a popular home needing a little more aggressive offer. You will also know which homes are priced a little high for the neighborhood, which would provide opportunity for an at or even below list offer. In today’s market, it is more important than ever to be working with an agent that understands the complex market to ensure you’re not overpaying for a home or possibly missing out completely on your dream home.
Thought about buying but put it off due to the market conditions? It’s time to connect with a TK Homes agent today and see if now is the perfect time to take advantage of the seasonal slowdown.
~ Written by CEO/REALTOR® Trevor Kohlhepp