How to hack Denver’s skyrocketing real estate prices
Tips and tricks to overcome the Mile High City's staggering housing prices
The prices of homes in Denver today are mind blowing. Can you believe that homes purchased in 2008 for $79,000 are now selling for $300,000 in some parts of town? Sellers are making some serious cash if they purchased strategically and buyers are having a tough time finding a home in their price range that meets all of their criteria.
The average sold price of a home in Denver County in May of this year was $449,579 – up 9 percent from May 2016. But fear not, would-be buyers and sellers, I’ve got the tips and tricks you need to help you hack these staggering real estate prices.
BUY WHEN IT'S COOL
The typical buying season is during the summer months - of course, the kids are out of school and it’s good weather for moving. However, it’s also the time when the most buyers are on the hunt, which means bidding wars are driving up the price of homes.
According to data from REColorado, Denver’s Multiple Listing Service, 49 percent of home sales in May 2016 sold for over the asking price. In December 2016, only 27 percent of homes sold for over the asking price.
Doesn’t it make you want to be more amenable to someone when you’ve spoken with them directly or seen their face? TRELORA Connect allows buyers and sellers to talk directly and engage in conversation. Buyers can ask the seller about anything related to the home, building a relationship with the ultimate decision-maker. Yours may not be the strongest, but sellers have been known to accept offers because they trust the buyer to take care of their old home.
FIND THE BEAUTY
You’ve been dreaming about your perfect home now for what feels like forever. Denver’s seller’s market is not only favoring the bold, but the people who are willing to sacrifice just a little bit on their checklist. Here are some ways to get into a home and eventually make it your dream house:
●Buy a home with a layout you love, but sacrifice on the finishes and appliances. Updates can be reasonably priced if you’re not moving walls or installing new support beams. Your ROI will be higher this way, too.
●Buy near a park instead of waiting for a home with a massive backyard.
●Use your savings from paying a flat fee for commissions instead of a REALTORS® commission towards making improvements on your new home. Buyers get back the difference between the commission offered to the Buyer’s Agent and our flat fee of $2,500. Typically, that amounts to $12,500.
INCENTIVIZE THE SELLER
Everyone wants to make more money on the sale of their home. Like buyers, sellers are also going through a hectic time, so making their lives easier will make them more willing to accept an offer.
●Sweeten the deal:
●Be flexible when you take possession:
○Sometimes sellers are also trying to purchase their next home and it can help them out a lot if you let them stay just a little bit longer.
●Guarantee your offer:
○Homes these days are selling for more than they’re appraising for due to the bidding wars. Submit an offer on a home that’s less than your loan limit and offer an escalation clause, which basically means that you’ll match or exceed any other offer by a fixed amount (i.e. $5,000 above any other offer up to $300,000).
Don’t give up. You may have to find creative ways of doing it, but you will get into your perfect home. TRELORA is helping buyers go under contract and sign on the dotted line every day by using the Commission Surplus and positive relationships with seller’s agents to get their buyers in their future home.