While all of us in the real estate world are gearing up for a very hectic and fast paced selling season, those of you who have not participated in the market in many years may not understand exactly what’s impacting our real estate market:
- Historically low levels of available inventory
- Double digit year over year median price increases region wide
- Nearly 20% of contracts failing
- Multiple offers on almost any home at or below median value
- Few entry level options available to first-time buyers
With intense timelines for both buyers and sellers, the thought many might have is “why bother”? Many sellers would consider moving to capitalize on their home equity to move up, but not knowing how to logistically coordinate their sale and purchase, many are left sitting on their hands. Some sellers want to know if they’re going to sell, and buy at the peak. Lower end buyers also understand there will be increased pressure to make quick decisions on tight timeframes due to massive competition from other first time homebuyers and investors. Many say, “we’ll just wait”.
Fear has crept into our real estate market and is influencing every side of the transaction. In my experience, these fears can be easily mitigated with the right approach and preparation. There is no need to fear this real estate market, I promise.
Buyer Fears and How to Move Forward
- “I’m afraid of prices falling after I buy”: Prices have been rising steadily since 2010. When inventory levels out, prices will likely slow, however, we can’t foresee a situation where inventory will level out within the next 3 years.
- “I’m afraid I won’t qualify for a loan”: I have a handful of lenders, each with a different specialty to help you find a loan that works, and if you don’t qualify, they can help you with a plan to work towards qualification.
- “I’m afraid of getting in a bidding war”: Let’s face it, you’re going to have competing offers. I’m able to work with you to put your best offer in, negotiate the best terms, and get your offer accepted.
- “I’m afraid of making a quick decision”: Getting educated about the market before hitting the streets will ensure that although you might be making a quick decision, you will be making a confident one.
- “I’m fearful I won’t ever find a home”: There is the right fit for every buyer, timing is the only variable. I don’t give up if you don’t.
Seller Fears and How to Move Forward
- “I don’t know the process and what it takes to sell my home”: I am your point person from beginning to end, organizing every step of the process. I work to educate you before hand to help you feel comfortable.
- “I’m fearful that when I sell my home, I won’t have a home to buy”: We can add additional rent back or replacement home contingencies to the contract if timing is a concern for you.
- “I’m afraid of selling at a bad time”: Capitalizing on your newly gained equity can be exciting yet distressing, if you are concerned about selling at the wrong time, talk with me about market trends and direction.
- “I don’t want to be rushed into a sale”: I move at your pace and will provide you with a roadmap from beginning to end, with the right tools and resources, you’ll always feel confident in your decisions.
This is one of the most dynamic real estate markets we’ve ever seen. Everything moves quickly with big stakes which is why it’s so valuable to have a Realtor on your side to get you through your purchase or sale. Having the right guidance, resources and insight available to you will help you realize there really is no need to fear this real estate market. My biggest fear is that those who wait to make a decision now will be upset they didn’t participate in this market. There are opportunities for every buyer or seller.
About the Author: Jared Reimer is a native Coloradoan and an Associate Broker at Elevations Real Estate in Old Town Fort Collins. He’s a community advocate, business champion, blogger, leader, tireless volunteer, innovator, thinker and expert on all things real estate in Fort Collins and surrounding Northern Colorado. You’re likely to find Jared spending quality time outside with his wife, Kacie, and young son, Hudson, or sharing a beer or two with a friend throughout Fort Collins. Call or text Jared at 970.222.1049 or email him at Jared@TheCraftBroker.com