Inventory is up in the Denver area, but the market still favors sellers for homes priced under $1 million. Well-priced homes under $500,000 still may receive multiple offers.
Phil Barru, broker associate at RE/MAX Professionals in Lakewood, shares the following tips on how to stand above the competition in the tight housing market:
No. 1: Get pre-approved with a reputable local lender. “Many people lose out in the competitive market because their lender isn’t responsive or the listing agent didn’t feel confident that they could get a loan completed,” stated Barru. “Your Realtor should refer you to one or more lenders who can guide you through the borrowing process and effectively communicate your financial qualifications to the listing Realtor. Make sure you are pre-approved and can back that up with a strong lender letter before you submit an offer.”
No. 2: Broaden your home search. Don’t get too hung up on a narrow set of criteria for your home. “Sometimes I show clients a home that doesn’t match their wish list precisely and they end up buying it. It might not have had the best pictures or checked all of their boxes, but once they are in it, they fall in love,” added Barru.
No. 3: Know the difference between a good value and a good deal. Americans love a great deal but often will pass over an exceptional value. Don’t be seduced by the idea that, with increased inventory, you will always be able to negotiate down from the asking price. Attractive homes that are well priced will still receive multiple offers and often sell above list.
“When you find a great home at a great price in the under $500,000 market, lots of other buyers are going to see that value and you may have offer competition,” concluded Barru. “Just because you pay over list price does not mean you aren’t getting a great value.”
Phil Barru works with buyers and sellers and is a Residential Real Estate Specialist, Listing Specialist and Investment Property Specialist. He serves the Golden, Arvada, Lakewood, Wheat Ridge and Littleton areas. For more information, call 303.233.8285, or visit philbarru.com. RE/MAX Professionals is located at 143 Union Blvd., Suite 120 in Lakewood.