PAUL'S REAL ESTATE MARKET NEWSLETTER – JUNE 2015
Welcome to the June edition of the 2015 Denver Real Estate Market Newsletter.
HOW’S THE REAL ESTATE MARKET FOR SELLERS?
As a Realtor, I’m often asked, “How’s the real estate market?” to which I reply, “It’s a great time to be a Seller.” Since the beginning of the year, I’ve listed seven houses; six have closed and sold; the seventh is under contract and scheduled to close in mid-July. You have probably heard the news that inventories of homes for sale are very low. With limited inventories and strong buyer demand, home prices have reached record highs. This is exactly what I’ve seen firsthand, with each of my listings. Below, I’ve listed some of the impressive stats for my listings, year-to-date:
Congratulations to my seller clients for 1) quick sales and 2) setting new record high sale prices ($/square foot) for their respective neighborhoods. It is clearly a terrific time to sell.
SELLER TIP
If your home is in need of updating or you’ve fallen behind with home maintenance projects, consider selling your home now, while we are in a Seller’s Market. The best time to sell, especially a home in need of work, is when there are few competing homes for buyers to choose from. At some point the market will shift to a Neutral Market. When this happens, my experience has been that home buyers will generally choose the home in better condition, even if it is slightly more expensive. With increased competition, it becomes more difficult and costly to sell the home in need of work.
HOW’S THE REAL ESTATE MARKET FOR BUYERS?
When I’m asked, “How is the market for Buyers?” I respond, “Interest rates are still very low, but because we’re in a Seller’s Market, buyers need to be prepared to present a very strong offer.”
There are several factors to consider when preparing a strong offer. Of course, price is important, but not necessarily the most important factor. Earlier this year, one of my seller clients received 12 offers on their home. They did not choose the offer with the highest price. Instead, they chose the buyer whose offer was slightly lower but allowed the sellers to stay in the house for 45 days after closing. The additional days after closing gave the sellers the time they needed to find a replacement home, saving them the effort and expense of having to move twice. The benefit to my seller: priceless. The cost to the buyer was relatively low, but made all the difference in a competitive bidding situation.
So far this year, every one of my buyer client transactions has involved at least one competing buyer. Before presenting each offer, I make a point to understand the SELLER’s needs. This understanding, along with a number of strategies I’ve learned throughout the years, has resulted in a very high success rate for my buyer clients. When completing against another buyer, your agent’s experience matters.
*** – Buyer competition for this wonderful family home in Englewood was fierce. The seller received 18 offers, four of which were at least 8.5% above asking price. My buyer clients presented a very strong offer, not just in terms of price, but with terms favorable to the seller, which ultimately convinced the seller to accept my client’s offer above all of the others they had received.
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MAY 2015 REAL ESTATE MARKET TRENDS
DENVER REAL ESTATE MARKET TRENDS
REAL ESTATE NEWS
Metro Denver home prices continue near-record gains Read More
Higher Tax Assessments Show Improved Markets Read More
Denver declared the hottest home market in the country Read More
Denver leads the nation in rising home prices Read More
INVESTOR NEWS
Single family detached home rental rates up by 12% in metro Denver Read More
Denver apartment rents up 8.3 percent, more than three times national average Read More
ECONOMIC NEWS
Colorado unemployment rate up slightly to 4.3% Read More
Colorado is a Top State for Business Read More
Colorado car and truck sales revved up again in May Read More
Colorado tourism hits record high: More people, more spending Read More
$300 million office tower to change Denver skyline Read More
OTHER NEWS
Denver moves up a notch on the largest-cities list Read More
Denver home to inaugural World Series of Youth Lacrosse Read More
Denver Zoo named one of nation’s best Read More
Safeway in Centennial among stores closing Read More
Elitch Gardens sold to investor group that includes Kroenke Read More
Three Colorado cities are among the top 20 in the U.S. for retirement Read More
Colorado will help pay to remake stock show complex Read More
THANK YOU FOR YOUR BUSINESS AND REFERRALS!
If you or someone you know is thinking about buying or selling a home, please let me know. It would be my pleasure to work with you or your referral. My commitment to my clients is to treat them with the utmost care as they work towards buying or selling a home. Referrals are the core of my business and are always appreciated.
Please call me with your real estate questions. I’m always happy to help you navigate through this constantly changing real estate market!