In this market, buyers are compelled to finally get off the couch, call their Realtors and attempt to buy residential real estate through out the metro area.
Recently showing property in Evergreen, my buyer fell in love with a home. Multiple offers, the same in Parker with another buyer. Showing in Highlands Ranch and Centennial with another set of buyers, same result, multiple offers.
I’m not seeing appreciation, but I am seeing properties with compelling pricing strategies receive more than their fair share of attention. Setting up showings on 12 properties for the weekend up and down the Denver Metro Area, several of the properties had received recent offers and were no longer accepting showings,
Here’s what I think is happening. First, let’s examine the pool of inventory. With very little builder inventory competing in the market place for more than 2 years now, owner occupied resales, shorts sales in various levels of occupancy and bank owned properties predominate in our market.
When the probability of a short sale ever closing or closing in a reasonable period of time factored into the process, at least 30% of the available inventory disappears for a buyer that needs to close in the next 30-60 days. That leaves 60-70% of the inventory remaining. With the supply of listings down considerably from last year in most MLS areas, this creates a shortage of well located, well priced, well cared for homes, and I’m here to tell everyone, at many price points, the pickings are slim!
Here’s what makes short sales so tough:
- Lender(s) holding the notes on these properties are swamped.
- Borrowers/Owners of the short sale properties have lives that are a mess.
- Many times, these properties have received less than excellent maintenance, and there are no funds to make repairs, and the typical buyer does not want a project.
- Many times, the typical buyer needs assistance in the way of closing costs. Once again, the funds are not available to assist.
- And, the list goes on and on…
Long story short, this segment of the inventory pool is a mess.
Owner occupied, well cared for, well priced properties where the seller has enough equity to close, or is willing to bring funds to closing sounds enticing doesn’t it? Well, it doesn’t happen very often. Good luck finding this type of property in the neighborhood and on the site you like with the floor plan desired!
Finally, bank owned inventory that can range from very nice fixed up and presented to the fly covered, filthy, poorly located and over priced property with little or no appeal.
By now, you understand why so few properties are receiving so many multiple offers. For the meantime, I’m predicting more of the same. Happy hunting; now’s the time for professional help more than ever before. Have you hugged your Realtor today?