Real Estate News with Terri Taydus, GRI, CNA

Times, They Are A'Changin' (Part 2)

January 15th, 2019 2:58 PM by Taydus Taydus

  
As I mentioned in my last “Times They Are a’Changin’” post, I am hopeful for a market correction (or the start of one) in the Boulder County, Broomfield and Westminster market, in the spring / summer 2019.

That said, it is easy for home buyers to quickly jump on and feel empowered…after all, it has been so very long since home buyers have had much of a say in the hot local real estate market.  But I want to caution, change will most likely not come in like a wrecking ball!  It will creep in slowly

So what does that mean if you are looking to purchase a new home or a replacement home in 2019?  It means that the expertise of your Realtor® is going to be more important than ever!  What it means is:

  • Although it’s always okay to ask questions, if you find the home of your dreams, rely on the experience and expertise of your Realtor®. Your Realtor® works in the real world of real estate day in and day out, there are BIG contract changes coming in 2019 and it will be more important than ever that you work with an experienced Realtor® that has completed the 2019 Contract Update continuing education (I personally completed my education the beginning part of January!)
  • Do not underestimate the sellers’ strength in the market. Like I said, this change will most likely happen gradually. The start of a market correction may mean that homes sit on the market a bit longer (90 days on the market is still considered a “healthy” or “normal” market…we are all just dealing with the PTSD from homes flying off the market in a matter of hours / days!) but that does not mean that just because a home has been on the market for 30 days that as a buyer, you can come in and low-ball an offer and expect it to be accepted. I know that 30, 40 or even 50 days seems long in the market we have become accustomed to, however it really is still well within the realm of “normal.” Rely on your Realtor® to evaluate the comps for any property you may be considering, and ask them to clearly explain to you what a fair market value would be for the desired property.
    • Remember: What you “think the home is worth” doesn’t mean a whole lot in the real world if it is not supported by what the available comps dictate.

       

      As Realtors® we do not “make” the market, we simply interpret it.  You hired your buyer’s agent, for their expertise and to help you navigate the purchase of your home, when determining how much to offer on a home and what terms to offer, trust in your good judgement about choosing a Realtor® and let him or her do their job to best advise you about writing a strong and competitive offer.

       

  • Some buyers feel that with a more leveled market they can low-ball and expect the seller to counter their offer. This is not always a wise strategy for the following reasons:
    • We are not in a DECLINING market; we are in a CORRECTING market. Therefore on a fairly priced property in good condition, you cannot rule out that there will not be other offers. If your offer is ridiculously low, and another offer comes in that is more reasonable, chances are you will never see a counter. The seller will simply elect to work with the buyer that was more “reasonable” and if any countering is to be done, it will be done with them.
    • Just like purchasing a home, selling a home can be very personal. Some sellers are quite emotionally attached to their home and a low-ball offer can be offending. I have seen sellers simply refuse to acknowledge a low-ball offer as it was offensive to them. A low-ball offer can also be interpreted by a seller as being presented by an unreasonable buyer that will be difficult to work with throughout the purchasing transaction.
    • If you are able to have your low-ball offer accepted, be prepared to have the seller balk at requests to make repairs. Most sellers that accept an offer much lower than they would have liked, will often feel like they played it forward on the price, and therefore dig in and refuse to make as many (if any) repairs post the buyer’s home inspection.

In closing, if you are in the market to purchase a home, hire an experienced and knowledgeable Realtor® to assist you, then keep an open mind when your Realtor® makes suggestions regarding offer price and terms.  

If you are looking to buy or sell your home in 2019, I would love the opportunity to meet with you and discuss your real estate needs!

Posted in:Boulder Real Estate and tagged:
Posted by Taydus Taydus on January 15th, 2019 2:58 PM

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