Price Shock on Replacement Homes Holding Back Many “Would Be Sellers” in Colorado

We are in one of the craziest scenarios our Denver real estate market has seen in years. Often as prices increase and homeowners have more equity, owners wanting to move take advantage of that and sell. But what we’re seeing now is prices rising & some homes selling with multiple offers, fewer sellers are listing their home than ever before. I joke with the title of this post but in reality it’s a conundrum with no clear direction or final outcome.

If this continues, we will likely see continued price gains again this year, and sellers holding out because of sticker shot might find the price shock even worse next year. 

PRACTICAL ADVICE:

Homebuyers looking under $400,000 should plan to be ultra aggressive and have realistic expectations that they will have to decide on a house often the first time seeing it and possibly within hours of it being listed. It’s very possible they will need to offer over the list price to get the offer accepted as well. This is a tough pill to swallow for homebuyers and understandably so. Buying a home is a huge purchase with many factors to way to ensure you’re making the right decision. However unless buyers want to have the story of making 10 offers with none being accepted and they were always a day late to the party, they better move super fast. For homes over about $450,000 or so, the market is not quite as crazy.

It’s a bit more complex for Sellers. Ideally, you can qualify to purchase without selling your home. If you cannot then it’s best to pull the trigger and get your home on the market and get under contract before making an offer on a home. Finding a replacement home before selling yours is a tough sell to get your offer accepted. I’m seeing countless scenarios of buyer’s offers being rejected or not selected because they have a home to sell and their offer is contingent.

Are you considering making a move? Buying your first home? Or relocating to Denver Colorado? If so, give me a shout and let’s put a plan together to make sure you’re set up for success before you dive into this crazy Colorado real estate market. Message me here now or call 303-666-2744 x 105