We continue to live a story of “A Tale of Two Markets,” broken into the under $400,000 price point and the over $600,000 market.
The first segment is exceedingly a seller’s market, whereas the latter is more of a buyer’s market, especially as prices approach the magic million-dollar mark. Many buyers continue to converge on this under $400,000 market, keeping it fast with many homes under contract in 7 days or less.
There is somewhat of a purgatory that occupies the $400,000-$600,000 market, where this space is defined in resales highly dependent on location, and competition from the new build communities. Homes can be under contract quickly, or lag for a time, often with list price reductions.
Then we have the over $600,000 market which represents the top 10% by sales price of our market – by definition, the “luxury area.” There are more choices at the higher price points which don’t create the same sense of urgency in this segment. Hence, more of a buyer’s market.
In any of these segments, smart buyers know that there are preparations they must make to increase their odds of success.
Have finances in order. Cash offers happen in all segments, and are tough to beat. If a mortgage is needed, meet with a lender (or two!) to get pre-approved before beginning to look at houses.
Be aggressive. When you find a home that you can see yourself in, don’t procrastinate. Sophisticated resources, market analysis and Realtor expertise will quickly determine an appropriate offer.
Be available. In the $600,000 and under market especially, be open to viewing properties at times other than the weekend. This will be helpful in creating a competitive edge.
Make an uncomplicated offer. Keeping it simple is best. This doesn’t mean tossing contingencies aside; it means thinking creatively and being open to options.
Make an emotional appeal. A letter appealing to the emotions of the seller has been known to give a buyer an edge in a multi-offer situation where all offers are in the same relative ballpark. Done right, I see it work often.
The Denver metro market segments are complicated. An effective and creative game plan will help achieve real estate success.