How to Win in a Very Competitive Real Estate Market
Learn home buyer tactics to win in a very competitive real estate market where inventory is low, homes sell fast, and bidding is typical. No matter where you live in the United States, if you bought a home in 2020 or are planning to buy in 2021 or 2022, you are likely competing in a real estate seller’s market.
Stay-at-home orders in place during the majority of 2020 have resulted in pent-up consumer desire to return to social and public activities. Workplaces realizing that employees can work remotely and be productive are agreeing to a mix of office time and work from home to support employee retention and work-life satisfaction.
These two significant changes are driving new approaches for winning in a very competitive real estate market using home buyer tactics to get the home you want if you are a committed home buyer. Hiring an experienced realtor who champions this market shift can make the difference between being frustrated and unable to find the home you want versus succeeding and finding a home you will enjoy for many years.
In this real estate blog post, Sam Wilson, Realtor in Lakewood, Colorado, offers factual information about the real estate market and home buyer tactics recommended by the Sam Wilson Home Selling Team. This video from CBS News Money Watch (April 2021) shares information about the hottest housing markets in the United States: Austin, Phoenix, Nashville, Tampa, and Denver.
CBS News Money Watch: How to Navigate a Competitive Housing Market
What is a Real Estate Seller’s Market?
If you have been out of the real estate market for some time, you might hesitate to buy a home when you hear the current market statistics for many cities in the United States. It’s true—the real estate market is a seller’s market.
According to CBS News Moneywatch, home prices rose on average by 10% in the past twelve months and are expected to continue to grow. The longer you wait, the more money you may need to spend to buy a home—and if interest rates rise, you’ll get less house for your money.
In a seller’s market, the demand for homes outpaces supply resulting in low housing inventory. This means that homes are selling fast, and bidding is typical.
Homebuyers have less negotiating power due to competition which may be frustrating. Working with experienced and knowledgeable realtors on The Sam Wilson Home Seling Team can make all the difference in customer satisfaction when buying or selling a home in the Denver metro area.
In A Very Competitive Real Estate Market, What Does This Mean for Home Buyers and Home Sellers?
For home buyers:
- Cash offers are king
- Competitive offers that win are above the asking price
- Requiring contingencies—like having to sell a home first—means buyers will lose out
- Homes are selling in “as is” condition
- In some situations, home buyers are waiving home inspections and appraisals—which may have short and long term unintended consequences
For home sellers:
- Considering solid offers is critical to make sure that the deal will close
- Low earnest money deposits may raise suspicion about the commitment of the buyer
- Only considering offers from homebuyers with pre-approved loans
- Sellers can be more choosy about accepting offers based on the loan type
- Offers with contingencies need not be considered
- Low-ball offers from home flippers or investors are off the table
- Those home repairs you thought were mandatory may not be—”as is” homes are selling
- Having a solid plan to buy a replacement home is critical to avoid renting and having to move twice, making the Knock Home Swap™ program from The Sam Wilson Group the solution to buying before you sell
Home Buyer Tactics to Win in A Very Competitive Real Estate Market
There are many considerations to win in a competitive real estate market like Denver, Colorado. Knowing what you can afford, focusing on what’s important, and thinking outside the box are essential home buyer tactics in a seller’s market.
- Run the numbers for what you can afford by adding utility and annual maintenance costs
- Consider homes in price ranges below your pre-approval loan amount to leave room for making a competitive offer above the asking price
- If you have the option to work from home several days a week, consider expanding the geography of your home search to areas where home prices may be more affordable and buyer competition lower
- Don’t be wishy-washy. Know what you’re looking for so that you can make an offer right away if you find a home you like
- Timing is everything—take a few days off work or make yourself available during the lunch hour to view homes with your realtor to get an advantage over less flexible and committed home buyers
- Photos and videos of homes may not accurately present the actual condition of a home. Be willing to look at homes that may not show well, knowing that the house may have the potential to be your dream home with a few simple updates.
Real Estate Advice and Tips You Can Count On from Sam Wilson
If you are curious about real estate market statistics for the Denver area, including the counties of: Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, and Park Counties, Sam Wilson issues a monthly market update in his real estate blog. You can learn how many homes are selling, average prices, home inventory numbers and more.
To receive access to the Denver area real estate market report, subscribe to the monthly newsletter or mark your calendar to visit Sam’s real estate blog at the beginning of each month to read home sales data based on research from the Denver Metro Association of REALTORS®. In addition to the Sam Wilson real estate blog, you’ll find helpful tips for home sellers and home buyers on the real estate tips page.
Sam Wilson and his team are committed to educating home buyers and sellers throughout the real estate process by offering more than 20 years of experience in the local Denver market. Learn more about what our customers have to say about the Sam Wilson Group.
Supporting the local Denver metro area is a priority for this real estate team. Your referrals and business make a difference for fallen law enforcement officers and firefighters killed in the line of duty through donations made to the Tunnels to Towers Foundation. Please help The Sam Wilson Home Selling Team reach their goal of donating $10,000 to Tunnels to Towers by helping clients buy and sell one home at a time.
If You Are Thinking of Buying or Selling, Contact Us Today
Are you thinking about buying or selling a home in Lakewood, CO or the Denver metro area? Get expert real estate advice when house hunting. Work with a buyer’s agent or a seller’s agent on the Sam Wilson Home Selling Team. If you are thinking of buying or selling a home, we make you a priority and share our expertise to make the home buying or selling process as stress-free as possible.
The Sam Wilson Home Selling Team specializes in homes in Lakewood CO, and Jefferson County Colorado, including Arvada, Aspen Park, Conifer, Edgewater, Evergreen, Genesee, Golden, Idledale, Indian Hills, Ken Caryl, Kittredge, Lakeside, Lakewood, Littleton, Morrison, Mountain View, West Pleasant View, and Wheat Ridge.
Contact Sam Wilson today by calling or texting 303-770-1250 or completing the Contact Me form on this website.
© 2021 Sam Wilson All Rights Reserved. Articles by Pamela D Wilson