March 2015 – The weather may be cold – but the market is still hot

This happens all too often in today’s market.    The house you wanted and submitted a contract on is sold, but not to you.  The inventory to select from is not growing because the demand from buyers sells houses often in a day or two.  Even if you’re the first one through the door there are likely numerous showings the first day right after yours and often multiple offers.  Will this madness end?  Yes, but probably not in the near future.

What can you do to make your offer win the bidding?

Offer more than the asking price if you think the property is worth it.  Many homes are selling for more than the asking price with fierce bidding.

Put a price escalation clause in your contract.  What’s that.  Your contract agrees that you will pay $x-thousand dollars more than the highest bona fide offer the seller receives.  It is wise to put a cap on the ultimate price, however.

Have your REALTOR find out from the listing agent exactly what the sellers want.  Sale date, possession date, inclusions, special requests.  If you can live with their wish list, make your offer exactly match their wants.  This may tip the scale even if there are other offers.  Many agents don’t ask exactly what the sellers want and and write only what the Buyers want when they write their offer.  Therefore, it’s an excellent tactic.

Home Inspection – set the inspection date close in as well as the date for inspection objection.  Both you and the sellers want this one out of the way as soon as possible, as it is a make or break event in any contract.

Include a letter about you when the offer is submitted.  Let the sellers know about you, your family and why their house if perfect for your lifestyle.

Don’t ask for any Seller concessions.  Asking the seller to pay X% or some amount for loan fees or some other closing costs simply reduces the net proceeds of sale to the seller and effectively reduces your offering price.

Make certain your REALTOR is an experienced agent.  It’s important that the contract you submit is written in a complete, professional manner.  Omissions and ambiguous provisions may cause a Seller to reject your offer off hand and choose one where all the t’s are crossed an and i’s are dotted.

.     .     .

 If I can help you by showing you homes and writing a professional contract for your purchase, let me know.  720-982-8654 – talk or text.

Good luck in your home search.

The Housing Market still Sizzles

Buyers jump into to the real estate market as inventory and prices continue their upward trends

Information is from DENVER MetroList – June 6, 2014  

Signaling the start of the summer buying and selling season, the real estate market for the Denver metro and surrounding area saw increased activity in May as buyers scooped up available inventory despite near record prices.

The pace of home sales picked up during the month of May, as the number of sold properties rose 19 percent month over month. In particular, demand for single-family attached homes saw a marked increase, rising 25 percent over last May.

Inventory in the Denver area continued its upward trend, as active listings increased 15 percent from April, and the number of new listings climbed 11 percent month over month. However, the market is still very competitive, as days on market saw a 17 percent decrease in May. Homes are moving quickly, averaging only 29 days on the market.

“We have seen a very active start to the summer selling season. The market is moving quickly, but an increasing inflow of new listings is a positive sign,” said Kirby Slunaker, president and CEO of Metrolist. “The market absorption rate highlights a high level of demand for properties and a reduction in days on market.”

The average single-family attached+detached property spent just 29 days on the market in May, down 34 percent over last year. There is currently a supply of just seven weeks’ worth of inventory in the Denver metro and surrounding area.

Continuing a 36-month trend, average sold prices were up 2 percent from April. Prices for single-family attached+detached homes reached $333,955, up 8 percent.

Searching Online

Before entering the market, buyers and sellers can get free access to up-to-the-minute housing information throughout the state of Colorado at REcolorado.com and at Coloradohomes.com.

What does all this mean to you if you’re planning on moving.  It means getting prequalified so a lender letter showing you’re financially qualified can be submitted with any purchase contract.  An absolute must.

It means with prices on the increase and interest rates still very low, now is the time be looking to buy a home before both of those factors increase.   And if you’re selling, this is the best time in the last six years to be doing so.  Want an opinion of what your home is worth today? Give me a call 303-343-9600 or email me chuckfetterhoff@comcast.net – I’ll do the research and give you that number.

Planning on Moving?  I can Help.

Call me at 303-343-9600 or email ChuckFetterhoff@comcast.net

No company sells more homes in Colorado than Coldwell Banker.

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As always the price for free blogging with WordPress is that an unsolicited ad may follow. Caveat Emptor.

Metro Denver Residential Sales Information – May 12, 2014

Report from Denver MetroList

DENVER – May 12, 2014 – More Denver Metro area homes hit the market in April, as buyers and sellers jump into the spring selling season.

April’s active real estate listings were up 6 percent over March, and the number of new listings on the market increased 15 percent month over month. The pace of home sales picked up as well, with the number of sold properties up 16 percent over March.

While there is slightly more inventory available this year, the market is still very competitive as inventory remains tight and days on market dropped 26 percent in April. Year over year, the number of active listings was up 29 percent, and the number of properties sold in April was down 9 percent compared to 2013.

“Inventory was higher in April than last year at this time, and we anticipate the number of available homes will continue to rise as we move farther into the spring selling season,” said Kirby Slunaker, CEO and president of Metrolist, Inc. “We continue to see a high level of demand for properties and overall inventory is low, so we expect the market will remain very competitive.”

Continuing a 36-month trend, prices for single-family homes continued to increase in April, with the average sold price up 5 percent over March and 6 percent year over year. Demand for single-family attached homes in particular continued to rise. Sales in April were up 16 percent over March and 20 percent over last April. The average single-family attached property spent just 30 days on the market in April, down 36 percent over last year, and the average sold price was up 15 percent, year over year.

“The rental vacancy rate in the Denver Metro area remains low,” Slunaker said. “We expect that’s what is driving a lot of the strong demand for single-family attached properties, which are often easy to rent.”

Even in the fast-moving market, brokers and agents have transitioned easily to Matrix, the new MLS system, and its newly enhanced public website, REcolorado.com. For buyers in this competitive market, REcolorado.com is the most accurate, current and up-to-date information source for new, under-contract, and sold property listings.

What does all this mean to you if you’re planning on moving.  It means with prices on the increase and interest rates still very low, now is the time to be looking to buy a home before both of those factors increase.   And if you’re selling, this is the best time in the last six years to be doing so.  Want an opinion of what your home is worth today? Give me a call 303-343-9600 or email me chuckfetterhoff@comcast.net – I’ll do the research and give you that value.

“It’s a privilege to live in Colorado”

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The price of free blogging with WordPress is that some advertiser may drop an unsolicited ad in here.

Ignore it or caveat emptor.

62 and Over – Is a Reverse Mortgage for You

A Reverse Mortgage is an Option to Consider

Do you know you can buy a new home with no monthly payments with a Reverse Mortgage?

I’m a Realtor, not a lender.  This information comes from a seminar I attended hosted by Reverse Mortgage expert, Tim Granville.  Get cash and monthly income from your present home’s equity. Purchase a property with a reverse mortgage and have no payments.  This is a viable option for owners who have substantial equity in their primary residence.

BASIC REQUIREMENTS FOR REVERSE MORTGAGE
1. Borrower(s) must be 62 or older
2. Borrower(s) must be on title
3. Property must be Borrowers Primary residence
4. Property can be single family, condo, townhouse, up to 4-unit residential if Borrower occupies one unit as a primary residence

Other Items of Importance                                • Borrowers remain in ownership of the property.                                                                    • Loan amount is a factor of age of the youngest borrower and the appraised value of the property.                                                             • Borrower must continue to pay taxes, hazard insurance, homeowner dues, and mortgage insurance – but no principal and interest payment on loan

• Loan plus accrued interest is due upon sale of the property or if property is no longer the primary residence (such as a move to assisted living), or death of the Borrower.
• Property can be sold at any time.
• A new home can be purchased using a reverse mortgage for financing and no monthly mortgage payments. A second home could be purchased by using reverse mortgage funds from a reverse on your primary home and using the cash received as part or full payment on the second home.

If you think a reverse mortgage may have merit for you and would like to know more, call me.  I’ll put you it touch with a lender who makes reverse mortgages.

If a purchase of a different residence is what you want, I offer my expertise as your REALTOR® in selling your current property and finding your next one.

Visit my website

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The price of free WordPress blogging – an unsolicited ad may appear below here.

What’s Up with Denver Homes Sales – besides Prices

 

Here’s some information from MetroList

Average Sold Price       March 2013 – $295,229     March 2014 – $310,867 – up 5.3% (Denver Post reported about 9%)

Homes for Sale    March 2013 – 16,522    March 2014 – 7,595 (appox 1 mo inventory)– 

# Homes Sold    March 2013 – 4,492         March 2014 – 5.160

What does this mean is English?

Denver home sales are red hot.  It means that right now it’s pretty much a Seller’s advantage.  Homes are flying off the market, some the day they are listed.  Others quickly receiving multiple offers and some selling for more than the asking price.  There are far more potential buyers than homes for sale, with many buyers frustrated after losing out on an offer (or more).  Most continue until they succeed and are able to take advantage of the current low interest rates.  More than 5,000 buyers were successful in March.

Why aren’t there more homes coming up for sale?  One theory.  Owners aren’t putting their homes on the market because they’re concerned that their homes will sell quickly and they’ll not have another home to move to.  I’m not certain that I wholly buy the theory.  The fact there’s a limited number of homes available at any one time should not deter the pursuit of another home.  Good homes are coming up for sale every day.  And the reasons people move are normally compelling.

Thinking of moving?   Go now.  If you’re considering moving up or rightsizing (PC for the older “downsizing”) now is the time to go.  With prices on the upswing and the probability of interest rates also swinging upward, there’s no time like the present.

For example – let’s look at what can happen to a $300,000 loan.   The difference in the payment with the interest rate at 5.5% vs 4.5% (today’s rate) is $2,193 per year.  Live in your home for 7 years and it’s cost an additional $15,500.

Not planning a move?  Perhaps you can share these facts with a friend or relative who may have have a move in mind.  I’ve been successfully helping people get from Home A to Home B for more than 25 years.  I’d welcome a call and the opportunity to help them move forward with their lives.

For my out of state readers.  If you know someone moving to Colorado, perhaps you could put them in touch with me.  They’ll not get a heartier welcome or better client care than from me.

“It’s a privilege to live in Colorado”

Visit my Website

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(The price of free blogging with WordPress.  An unsolicited advertisement may appear here.  Ignore it or Caveat Emptor.  I prefer the former.)

 

The Denver Area Housing Market Remains Fast Paced

June 2013 Denver Market Update

The Denver real estate market continues it’s frantic pace – good for sellers, frustrating but still good for buyers.  If you’ve been waiting to sell, this is an excellent time for it.

ON THE SELLERS SIDE…

• May 2013 over May 2012 – increase in average price 11.5%

• Inventory of homes is low although the number of homes for sale increased in the last month from about 6,800 to 8,200, giving buyers more to look at.  But still not enough to keep it from being a sellers’ market

 Sellers have regained some of the equity lost during the the decline that began in 2006, allowing many to sell their homes without being upside-down on their mortgages.

• Properly priced homes in good condition are often selling within a few days and sellers are frequently receiving multiple offers in a bidding situation.

ON THE BUYERS SIDE…

• Interest rates have risen a bit in the last month, from the vicinity of 3.6% for a 30 year loan (FHA 3.25%) to 4.1% (FHA 3.75%).

• Builders have geared up and are offering good new product.  However, there can be a several month wait for delivery in most new home communities and prices are on the rise.

• Buyer competition for good resale homes is fierce. Competition for HUD properties is even fiercer with most selling for far more than the HUD offering price.

• With prices on the rise, it’s no wonder there is so much buyer desire to buy today. 

UPPER END HOME SALES have heated up.  Sales of million-dollar-plus homes are up more than 50% year over year.  It seems that wise money sees this as the opportune time to jump in.  However, average sale price year over year is down about 8%.

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APPRAISALS — TAKE NOTE:  With home prices rising about 1% a month and appraisals being based on past sales, we’re experiencing some difficulty getting some of our sales appraised for contract value.  For example, if the appraiser were to have no other past sales than three 90 days ago, the actual market will have gone up 3% in those 90 days.  On a $300,000 sale, this could equate to an appraisal $9,000 below contract price.  It’s the nature of the beast and we have to live with the system.  Once the appriasal is done, it’s very difficult to get one changed.  To help the appraisers get the best comparable sales, experienced Listing Agents meet the appraiser at the property and provide as much information  as possible about upgrades to the home, neighborhood information. and current sales data.

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How long can the market sustain an approximate 1% per month increase in home prices?  How much more will interest rates rise in the next 6 months – year?  If I only had a crystal ball.  We really only have one market to deal in and that’s today’s – a fast paced, good time to sell – good time to buy market.  What a welcome change from 18 months ago.  

Want specific information that applies to your situation or community.  Call me 303-343-9600 or email me at chuckfetterhoff@comcast.net