Winter Month Home Buying

If you endured the journey and anxiety of trying to find a home in Colorado during the spring and summer months and were not successful in finding a new home, you might find that the right time is now. Many folks stop looking for a home during the months of October, November and December. While the cooler weather and snow might make for a tricky move, you just might find a HOT deal in a HOT market during these months.

For one, the general census is that most folks want to get through the holidays and cold weather before they think about moving, so many the buyers you competed against months ago are no longer in the market. If you look at the statistics, homes are staying on the market a little longer than the summer months and we are starting to see price reductions taking place in order to move inventory. Secondly, a seller that is selling right now most likely has some outside motivation that is prompting them to sell right now. They would be far batter off waiting till the spring, so if their home is on the market now you can bet there may be some extended motivation, and thus the potential to get a better deal.

So, unless you are waiting for that frenzy that is upon us in just a few months, you might consider bucking the trend and look to buy now! More selection and less competition equals a better deal!

If you or someone you know is looking to buy or sell, check in with me and my team and we can help you navigate the process. Happy Thanksgiving!

Troy Johnson
303 929 8954

Pricing Your Home in a “Sellers” Market

Many people think that in a seller’s market, like the one we are seeing here in Colorado, that you can drop a Realtor sign in the yard, place a high price on the home and still sell it. I would certainly beg to differ. Yes, at the price points in the high 100’s to mid-200’s, we are finding a fraction of buyers that will pay over appraisal or cash buyers that sometimes buy without an appraisal. I have been involved in these transactions and they are few and far between.

More commonly what I see in this market is sellers being overly price aggressive based on what the media says about the market or what a friend of a friend had happen, and place a price tag on their home that in the end costs them money. Home information is all over the internet. Buyers have unlimited access to sold data, under contract data and specifications of any home on the market and can, with reasonable intelligence come up with an approximate range that a home should sell for. If your home resides too far outside this range, your home sits on the market longer than the average. Buyers begin to wonder if there is something else other than price that is causing your home to sit on the market so long. You are forced to make a price drop. Now you are 3 weeks into the listing and your home has no offers and you take another price drop. As your home begins to fall into the correct range, buyers start to come back and sniff at the home. They also see that you have now taken multiple price drops and have been on the market longer than any house in the area. What do they do? They make an offer, usually at the lower end of the correct price point or below. For goodness sake, you lowered the price 3 times and have been on the market 6 weeks…. surely you are getting desperate and will lower your price again!!! In the end you settle for a price lower than you would have achieved had you priced the home correctly in the first place. If you find yourself in this position making small price reductions, I would suggest you figure out your absolute bottom sales price, drop the home to that price and stick to your guns. Small price reductions are killers in this market. Better yet, find a full-time, professional realtor with experience in your area and lean on their market expertise in the beginning. Don’t let the market fool you!

If you or someone you know needs help buying or selling a home, be sure to call me and my team for an opinion on your situation. I can be reached at 303 929 8954 or at my private email at troyajohnson71@gmail.com

Best of Luck!

Troy

Curious about the “HOT” Colorado Real Estate Market?

There are many folks wondering why the real estate market in Colorado is running at such a furious pace. We are seeing record low inventory, record low interest rates, and massive competition for housing among buyers. In many cases, Sellers are being rewarded with multiple offers over asking price for their properties. But why is this happening???

First off, Colorado is a great place to live. As a 44 year old native of the state I can attest to the amazing amenities Colorado has to offer. Gorgeous mountains and world class skiing…YES. A vibrant downtown area represented by the 4 major sports teams…YES. A diverse urban population with many ethnicities and terrific pockets of unique and expressive cultures, restaurants, homes, and art centers, etc…YES. Four distinct seasons and 300 plus days of sunshine…YES. An International Airport and vibrant high-tech, petroleum and medical industries….you get the picture. But what is really behind the rise in real estate here?

I have a few theories for you to share with your friends. One, interests rates are at historic low’s, but that drives housing demand in most areas of the United States. Millennials (The next biggest population of real estate buyers) seem to love the diverse cultures and outdoor adventure Colorado offers and are currently living here and buying or moving to our state. In 2008 Colorado was hit hard by the housing bubble and many buyers (for good reason) stood on the sidelines and waited for the absolute bottom of the market before they purchased. The truth is the market here started to improve in late 2009 and many buyers that were on the fence waited for further drops and missed the bottom. Now they are scurrying to buy before prices get out of their reach (which is happening a lot now).

Those hurt by the market downturn in 2008…who’s credit suffered, had late pays on their mortgage, faced foreclosure/short sale or even bankruptcy are now beyond many of the imposed borrowing thresholds that keep people from getting loans. These folks are now back in the market, thus adding to the pool of buyers.

Lastly, and with no numerical data yet to back this up, I truly believe that recent legislation around the marijuana laws are lending our state to an influx of buyers and renters that we never had before. Yes, people are here to get high legally and need a place to live….There I said it. Regardless of your views on legalized marijuana, I believe this legislation is building housing demand in our state that cannot yet be supported with exact data. So, next time someone ask’s you about the rise in real estate in Colorado, here are a few talking points. If you or someone you know need help buying or selling a residential property, please let me know. We are experts and are happy to put our Team to work for you! If you have any questions or comments about this post or any others in the future, I welcome your comments.

Troy Johnson, Realtor. (303) 929-8954 or via private email at troyajohnson71@gmail.com