It can be a challenging process to buy a home, no matter what the time of the year or the status of the real estate market in Observatory Park
or anywhere else in the state of Colorado, however there are certain times during the year that can prove to be more challenging than others.
The Inventory Level
Some real estate markets go through high periods and low periods as it relates to the level of inventory. When the housing inventory is low, it can result in providing real benefits for the home seller by creating a seller’s market. What should you do to ensure that you prepare for buying a home in a seller’s real estate market
? These are the questions to consider because in some cases, it is best to wait to see whether the real estate market shifts in your favor.
There are certain actions to take in preparing to buy a home in a seller’s market. Let’s start by understanding what is meant by a “seller’s market”. A seller’s market is when several buyers are in competition for the same house because there are fewer available housing options. For example, there are more people moving to Denver looking for homes than there are people selling their home. Many real estate professionals talk about housing inventory and its significance to the seller’s market. Top realtors usually use different measures to help clients to know when the market will shift in their favor. The experienced realtor, at the same time, will calculate the market absorption rate to decide how fast homes will sell and in how many months this will happen. If the months to sell the inventory are fewer, then a seller’s market will exist.
Things to Consider
Prior to purchasing a home in a seller’s market, there are a few things to consider:
A major factor to consider when making your purchasing decision is the interest rate. If the rate is low enough for you in a seller’s market, you could take advantage of this.
There is a good chance that there will be multiple buyers and multiple offers in a seller’s market. When there is competition, you need a good realtor to help you with your bargaining and negotiation power in order to get the best price.
- Interest Rates
- Choosing the Available Home
Price is also an important aspect. In a seller’s market, if you really love the home and want to get it over your competition, you may have to pay the full price that the seller wants. In some cases, you may have to pay a little extra to compete.
Usually, the real estate inventory is lower in a seller’s market. If you have specific criteria for a home, you may not get everything you want in a seller’s market.
One of the most essentials steps in purchasing a home is to get a pre-approved mortgage before you contact a real estate professional. With a pre-approval, the seller will take you more seriously. You should also limit the criteria and contingencies, if you want to get the home. Most sellers don’t want to have too many hurdles in closing the sale.
And last but not least, make sure you have an aggressive sales offer and most importantly choose a realtor that knows the market well. Contact Elevation Realty
, focused and reliable realtors with experience in the Observatory Park neighborhood of Denver,Colorado. Call us at 303-579-3566 to discuss your home buying goals today!