The Denver Real Estate Market is Hot! What Does That Mean For You?
If you've opened social media or watched the news in the last 2 months, you have heard that the Denver market is on fire. But what does that mean for you?
As a Real Estate agent in this insanity, as well as an investor, I see several opportunities in the market we are facing.
If for any reason you are unhappy in/with your property and do not want to hold it as a long-term rental after you move out, NOW is the time to sell. If you are ready to get rid of some of your investment properties, NOW is the time to sell.
Inventory is the lowest it has ever been in the Denver market (approximately 12 days). We are also experiencing record breaking lows in mortgage interest rates which are resulting in an incredible Buyer demand. Mix some of the lowest supply we have had with some of the highest demand, and you have a recipe for a crazy market.
BUT.. where will you go? Does this mean you will also have to offer well over asking, appraisal gap coverage, etc.? Aren't you going to make money on the way out and overpay on the way in?
If you are moving out of state and not headed to a coast, you will be fine. We can set up your listing so that the timing works for you on the buy side wherever you are headed.
If you are staying in the Denver area, you have options! As the Seller, you are 100% in the driver's seat. You can ask for a 30-60 day close, followed by a Post Closing Occupancy Agreement of up to 60 days (you rent your home back from the Buyer after closing and typically only cover the cost of utilities and renter's insurance). This gives you between 90 and 120 days (3-4 months) to find a new home. If you are working with a good agent and have realistic expectations, this can definitely be accomplished. (Hi, I'm Chelsea. I'm a Realtor. I'd love to work with you. Call me.)
Outside of having more time to find a new home, there are other options as well. If you like shiny things, a new build could be for you. You would avoid competition almost completely going after a new construction home and not overpay by $50k+ as a result.
Another option I have started utilizing in my business is cash lenders. I have lenders who will buy the house FOR YOU with cash, then sell the house to you 2 weeks later (don't worry... you're in the driver seat the whole time). This gives you the ability to submit a cash offer and avoid having to overpay like someone with a loan. You are also able to close quicker, thus making you even more competitive. The cash lenders do a valuation up front and commit to making up the difference if an appraisal comes in below that. Out goes the stress of wondering what an appraisal will come in at and if you'll be making up the difference! In short, these cash lenders are your safety net and your secret weapon to becoming more competitive without having to offer more money. Last but not least, they are competitive in their interest rates and closing costs, so you are not overpaying by using them.
Curious about the current value of your home? Interested in chatting about what timing and other options could look like for you? CALL ME. While I have a blast writing these blogs, I don't do it for fun. I do it so I can help you. Use me. 740.334.9898 is my cell.
2. Buy Up
With mortgage interest rates being at an all-time low, you will likely qualify for a higher purchase price and better terms than you typically would. Now is a GREAT time to consider buying that larger house that you desperately need after a year of quarantine.
Curious as to how the sell and buy timing would work? Text or call me and let's chat through your scenario. 740.334.9898.
If you are staying put in your home, you might as well put yourself in the best financial position possible.
Looking to get your monthly payments down or get out of PMI? A refinance could be a great option for you. Even if you refinanced a year ago, it may make sense to refinance again. I have several lenders I can put you in touch with for this option if you think it may make sense! Or better yet, let the professionals tell you if it makes sense and give them a call!
Looking to make some improvements so your house becomes the home you want? It may be time to look at a cash-out refinance. This type of refinance allows you to take out some of your equity for your use on home projects, etc., rather than paying out of pocket for them.
Shoot me an email if you'd like to be connected with the best lenders in the business in the Denver area or a great agent in another state. firstname.lastname@example.org
If you are wondering what makes the most sense for you, reach out. Let's chat about your current position, your goals, and how I can help. You will never be pressured by me, but you will always get my honest opinion. I am always here to be a resource for you, your friends, and your family.