7 Secrets to Success in this
Crazy Northern Colorado Real Estate Market
The Northern Colorado real estate market has been really nuts the last few years. Our inventory keeps getting smaller which is injecting a lot of fear in the market for both buyers and sellers.
There are a lot of buyers waiting in the wings for the market to cool down. They fear the competition in the market and worry about paying too much. They are hearing of homes going for much higher than asking price and assume that means the market is overpriced so they are waiting for this to change.
There are also Buyers that have attempted to buy in this market and gave up because they couldn’t get their offers accepted.
These may be first time buyers, investors, or just sellers looking to make a change. These sellers have double the fear.
Wait? This is a seller’s market. Why would sellers be fearful?
Well, if you’re currently living in a home and want to upgrade, you have to become a buyer. You’re seeing homes go under contract quickly, but you’re also seeing buyers getting beat out time after time in multiple offer situations.
Sellers are reluctant to sell because they fear being left homeless and not being able to find their next property.
So what is the solution? Hide your head in the sand and wait for things to “change”? What do you think is going to change? Do you think the market is going to and prices are going to go down? Don’t count on it!
The reality is that the longer you wait,
the more you’re going to pay.
So how can you guarantee success in this Northern Colorado Real Estate market? Keep on reading…
- Make your move and move quickly. The market is going to continue to grow and rates are going to be higher than they have been, so waiting is just going to get you much less home for your money. Last year, we saw home prices climbing in the double digits. It is not going to . In Fort Collins and Loveland, the real estate market didn’t really dip during the crash that the rest of the country saw. It’s time to make your move…but not until you finish this article.
- Be Prepared. It sounds like a, “DUH” to most but you would be surprised how many Buyers and Sellers step into the market totally unprepared. As a buyer, get pre-approved, not just pre-qualified, have your lender letter ready, and get into the mindset that you are going into battle. As a seller, you need to make sure that your home looks spectacular and is priced to expose and attract your home to most buyers.
- Don’t work with big banks. You read that right. Wells Fargo, Chase, etc., will keep you from getting to the closing table. I don’t know why they do it, but the big banks don’t seem to understand that they need to work quickly and efficiently when working with buyers. They are notorious in our market for blowing and delaying closings. With the market the way it is, there are often backup offers in place and if your lender can’t get you to the closing table on time, buyers could lose their earnest money and sellers will be stuck with the decision to either wait it out or start over with another offer. Both of these scenarios could easily cost the buyer and the seller their earnest money deposit and their next home if the deal falls through at the last minute, which is when it usually happens.
- Don’t be cheap or greedy. This is a highly competitive market so you’ll need to loosen your pocketbook a little bit. You are going to have to pay to play, so be prepared for prices to go up and for unexpected extra expenses. As a buyer, the biggest challenge will be the escalating asking prices on homes and dealing with sellers that don’t want to fix inspection items. Sellers will need to spend some extra money to make sure that they get the best offer by presenting their home in the best light, and making sure that there are no issues on the inspection that could delay closing or lose the deal altogether.
- Sellers are not in control. It is a seller’s market but they are not in total control. If you are a seller that has a dumpy property that you think you can sell for top dollar you are sadly mistaken. In this market, it is normal for homes to go under contract in a matter of days and sometimes hours. If your home is sitting on the market for too long it will get stigmatized as a problem property and you may get no offers at all or if you do, they will be low. Think about it. Buyers are already scared that they are paying too much so if your property has obvious flaws they will probably not bother with an offer because the presentation of your home is showing them that you are looking for a stupid buyer and they don’t want to be that. Buyers, don’t fall for that. More quality homes are coming.
- Be Flexible. The real estate market is always unpredictable so you need to be prepared for that. Entering into the real estate buying and selling process in any market with preconceived ideas of outcome will always be disastrous. It is very rare that a contract will make it from original offer to the closing table unchanged. There will always be counter proposals, amendments, additions, and price changes. Go with it. 6 weeks after closing you won’t remember that the seller left 75 pounds of dog poop in the backyard for you to clean up.
- Don’t work with a STUPID Agent or Transaction Broker. 95% of agents are not knowledgeable and capable enough to get you the best deal in this market. The good agents are few and far between and they are not all the same. A good agent will have a detailed plan on how to get you to where you want to be in this market. (Some of us even have guarantees). In Colorado, you also want to make sure that you are working with a Buyers and/or Seller’s Agent and not a Transaction Broker. A Transaction Broker does NOT represent your best interests. They are only there to assist. The Group, Inc., as an example, works only as transactions brokers. If they tell you that they will give you personal advice anyway, they are breaking the law.
- Hire experienced pros. Wait, the title says you only got 7, but I like you and always try to over deliver, so I’m giving you a bonus! Great lenders and real estate agents work in this market all day every day so we know how to get things done. We know that there are over 43 people involved in a typical real estate transaction and we have teams of vetted professionals to make sure that things go as smoothly as they can.
Sellers, I’m sorry, but you MUST have a real estate agent to sell a home in this market. You need to make sure that your home is presented and priced in a way to generate a massive frenzy of buyers to your home. You need an agent that protects your interest and has a plan to ensure that you are not left homeless.
Buyers, your offers may never be considered if you don’t have an effectively written offer and lender letter. You also won’t be able to act fast enough when an opportunity presents itself.
I have more tips on how to be successful in this market, but I am running out of space for this article. I’m always available to talk. To learn more about my Guaranteed Success Plans, touch base with me at [email protected].