For the better part of the last 12 months, many home buyers experience the scenario where they found a home they love, submit an excellent offer only to be outbid significantly, or to find out that the home is already off the market. Every home buyer I work with is unique and they all come from many walks of life, but it seems like this scenario is common no matter the budget, neighborhood, or home needs.
There are multiple reasons why this is happening but basically the Denver metro housing market continues to experience a basic tenet of economics – a supply and demand issue. This is an ongoing issue until some combination of supply catches up or demand slows down. Colorado and especially the Front Range in particular are a prime example of a housing shortage as buyers seek to live here.
More often than not, every time a buyer client loses out on a home, we find another home that they love and everything works out. To be sure, it is very disheartening in the moment. Below are a few keys things I recommend to home buyers who have recently lost out on a home they love:
1. Grieve the process
We are humans, not robots, and it’s okay to be emotional about loss of any kind. It’s important to accept your feelings of grief, anger, sadness or just plain disappointment. If you have coping mechanisms like exercise, talking to a friend, praying or journaling, then participate in those and feel better. Give yourself a few days to grieve the loss and then get back into the market and find your real dream home!
2. Keep positive thoughts
As with anything, it’s important to go into the home buying process with realistic expectations and hopefully you have positive thoughts that everything will work out. Trust in the home that is meant for you will become yours and that everything will work out well. If you lost out on a home, keep a positive thought that you’ll find another home that is an even better fit for you. Positive thinking can be make or break with most things in life and home buying is no different.
3. Reset Expectations
This may not apply to you, but assessing your expectations of what is realistic in the current market could be helpful. For example, if you had an expectation of a lower price in the market and decided to wait to put in an offer only to realize the price was appropriate based on other current comparables and the home was bought during that time, then it’s important to assess your expectations of what is realistic in the current market. Again, because the housing market is experiencing supply and demand issues the prices are unlikely to readjust until this relationship evens out.
4. Be mindful of timeliness
The most important thing you can do when it comes to combatting the quick moving supply and demand issues in this market is to be mindful of time. If you’ll be financing part of your purchase, it’s important to go through the pre-approval process with a reputable lender prior to looking at homes. Mortgage interest rates have been climbing in recent weeks and there is a cost of waiting. If we find a home you like and can see yourself living there, it’s important to put in an offer right away. Remember, through the process you can always step aside if you find something out that you don’t like but getting that initial competitive offer in first, before anyone else, is absolutely crucial.
Want to learn more about the current Denver metro market? Are you in the market to buy or sell your home? Call and text me at (720) 323-4176 or email me at [email protected]