How to Navigate Colorado’s Low Inventory Market like a Pro
There’s no denying that the real estate market is hot right now. The need for homes that cater towards consumers desired lifestyles in the wake of COVID-19 paired with low interest rates have created an environment where buying a home is a top priority on everyone’s to-do-list.
Across Colorado, real estate markets are booming. Last year, Denver Metro saw a 13.5% increase in homes sold compared to 2019, according to LIV Sotheby’s International Realty’s (LIV SIR) Micro Market Report. Further south, Colorado Springs, one of the most popular secondary markets in the country, saw a 5.8% rise in home sales. Another example of surging demand can be seen in the Vail Valley, where home sales grew by 24.3%. As a whole these increases illustrate just how many consumers are in the market for homes right now. However, the tidal wave of buying activity is hindered by the limited inventory of available homes.
Many markets across Colorado are experiencing extreme sellers’ markets, in which buyers are facing fierce competition for a small pool of available homes. According to Colorado Association of Realtors®, statewide inventory of homes in January dipped by 13.1% in a year-to-date comparison to January of 2019.
While there are still plenty of opportunities to reach your real estate goals if you’re in the market for a new home, it’s understandable to be intimidated by the current market conditions. Here is some sage advice and expert tips for navigating the seller’s market this year.
Act Fast & Adjust Your Strategy for Success
If 2020 has taught us anything, it was that we need to adapt to the ever-changing real estate landscape, which means moving quickly and aggressively. We are experiencing unprecedented times in the real estate market and every hour is crucial for buyers in this market. It is important for buyers to not only take action fast on listings that they have their eyes on, but to rethink their strategies when it comes to making an offer. The ‘win’ right now can’t be about squeezing the seller for every dollar. Instead, the ‘win’ is about beating out other buyers. As a buyer, you are more or less negotiating against other buyers, not the seller. Once you find your dream home, ask your Realtor® to use every trick in the book to entice the sellers to take your offer over the others.
Come Prepared to Win
Before you begin your search for the perfect home, spend some time getting yourself prepared so that everything is in order for when the right property becomes available. This can mean getting pre-approved with a local lender if you are seeking financing, having a checklist of features that are a top priority for you, driving through neighborhoods to get a feel for the area and narrow your search, establishing an LLC or other entity in which you might like to take title, and blocking out time on your schedule to see properties as soon as they come onto the market. Taking these actions ahead of time can help ease some of the stress associated with buying a home in a market where the competition is stiff.
Don’t Get Attached Too Quickly
The home buying process can be very emotional. It is easy to fall in love with a home when touring it and imagine what it would be like to experience life’s special moments there. But with COVID restrictions limiting the number of people in a home at any given time, it can give buyers the false impression that they are the only one with their hearts set on the house, when in fact, there is probably a long line of prospective buyers who love the home as much as you do. Try to limit your emotional connection to a home until your offer has been accepted. These days, inventory moves too fast to mentally commit to a property before you have the keys in hand.
Take these tips into consideration before you embark on your own real estate journey. When it’s time to take the plunge, allow LIV Sotheby’s International Realty’s local real estate experts to guide you towards achieving your goals. Get started today by calling Jeffrey Cloonan on 303.893.3200 or visiting www.mtnluxurygroup.com.