For those who don't know about the market for buyers in Denver, we're just going to give it to you straight...it's brutal. It's competitive, it's low-inventory, it's psychologically and emotionally turbulent. It's bad.
What kind of bad you ask? It's multiple offers on nearly every property. It's waive your usual rights in hopes of just maybe having your offer accepted. It's rapid appreciation and rising interest rates. It's time, energy, and effort with no guarantee of reward or a place to call home. It's not a market any buyer wants to face. It took Audi 5 years to find a property to downsize into, it took Alexander 6 months of daily searches, to even find a property worth bidding on. Despite this, even in a frustrating market like this one, buying real estate may still be the most important financial decision you make in the next few years, and is something we strongly urge anyone planning on calling Denver home for the next few years, to consider. It also doesn't have to be a 24/7 search. We are constantly on the look out for properties for buyers that have let us know what they're looking for. If we don't know what you're looking for, we can't let you know if we find it! Some of the other big reasons to think about buying sooner, rather than later:
New built inventory has yet to catch up with demand and appears to be years away from doing so. Most research suggests a few more years of appreciation still to come. Every year you wait, you are potentially missing out on that appreciation.
Interest rates are expected to rise, making mortgages more expensive for identical loan amounts. Even if you could buy the same house, for the same price, this year versus next year, your monthly mortgage payment will be more because your loan's interest rate is higher. In this way rising interest rates make the same house at the same price, more expensive.
Rents are near all-time highs (though we saw evidence in 2017 that apartment rents are leveling off) and for many renters there are opportunities to build equity rather than spending money month after month that you never see again.
For those without any property, future real estate dreams may slip away if appreciation continues at aggressive rates. Those with property can benefit from the appreciation of their existing home as they plan for their next one.
Individuals in jobs they love, but with limited income growth potential, need to consider the chance that they will be permeantly priced-out of the areas they one day hope to live. Buyers that delay, allow year after year of appreciation to put their dream homes, or even stepping-stone properties, out of reach.
As a result of this extremely challenging market for buyers, we have through trail (and error) arrived at a process that makes this market less taxing for buyers and most importantly increases their changes of getting the house they want. Here's how we do that:
It starts with listening. We ask you a ton of questions to really drill down into what you are trying to accomplish in purchasing real estate, with even more questions focused on the property specifics and location.
Once we think we have a firm grasp on what you are trying to accomplish, we lay out the practicality of that endeavor. If we think you're going to be wasting your time, we'll tell you. If we think your expectations don't line up with reality, we'll tell you. And if we think it makes sense, we'll tell you that too!
If after our first few conversations it seems like we're going to be a good fit, we'll explain the next steps in the relationship, from paperwork to property showings, we'll give you a clear idea of how we work.
Once we begin working together, we'll spend our first few showings drilling even further done into the intricacies of your wants and needs, in ways that only standing in a property will reveal. We value your time and don't want to show you properties you don't like.
Throughout this process we'll be educating you on the market, walking you through the elements of the real estate contracts, and building your confidence, so that when we finally do find a property you like, you have the knowledge and confidence to decide what that property is worth to you and make an offer accordingly.
Finally, once you're under contract we'll be connecting you with our tried and true mortgage brokers, home inspectors, radon testers, and other professionals that will prove vital in helping you perform the necessary due diligence on the property, while also helping to make sure you're able to get the loan needed to buy the house.
Once you're closed and happy, we'll be waiting in the wings to help you with your transition and try to answer any questions you may have.