All of the craze surrounding the real estate industry is not just a bunch of hype. If you study the signs of a competitive market, you will see why Denver ranked #7 for hottest real estate markets in the month of June. Here are the signs zillow.com says to look for…
- Sellers Expect Cash Offers – Cash offers beat out loans every time, but don’t worry if you can’t pay cash. There are other options available for buyers.
- Bidding Wars – In a competitive market, you bet you will see buyers trying to outdo other buyers on a home priced just right in the right part of town.
- Your City is Hip – The hipsters of this day are likely to flock to tech savvy cities. When you see your city open up coffee joints, yoga studios and trendy stores, you can assume you are a hip city. Being “hip” plays a big role in the competitiveness of the market.
- Escalation Clauses – When you are making an offer on a home in a competitive market, you may hear “escalation clause”. This simply means that you are willing to raise your offer (to a certain point) should there be a bidding war between other buyers.
- Extras – In a competitive market, what can buyers do to get the sellers on their side? Knowing how quickly or slowly the sellers want to close and being accommodating, writing a letter to the sellers explaining the desire for the home, etc. are a couple of ways to win the sellers over.
- Homes Sell for Over Asking Price – A sure sign of a competitive market is when homes are selling for much more than asking price. Buyers in these areas are often out of luck if they are wanting to make low offers.
- Multiple Offers/Busy Open Houses – Both of these are marks of a very competitive market.
- Gone Before You Get There – If you are searching for a home but can’t seem to get showings before they are already under contract, you are in a competitive market. A way to help you get first dibs on a new listing is to set up alerts on your phone for any new homes that go on the market.
- Neighborhoods Nearby are Hot – Usually when a neighborhood is hot, the trend will move down the street to the next neighborhood. It becomes a “tidal wave effect” and happens in competitive market areas.
- Deadlines on Offers – If you are wanting to make an offer on a home where the seller has set a deadline for all offers, you are definitely in a competitive market. Buying a house is stressful enough, so don’t let this get to you. If the one you have your eye on doesn’t work out, move on. There will be another one come along.
We have seen many, if not all, of these happening in our area lately. The Denver market is on fire! You need the help of an experienced real estate agent in a market like this. Don’t try to do it alone! We are here to take some of the stress off of you. Call us TODAY @ 720-593-2014 to get started on your home search. We are waiting to hear from you!