It seems this year most of the country is experiencing a seller's market.
Denver is no exception.
In fact, Denver has been experiencing a seller's market for several years in a row now. Which is great news...if you are a seller!
What, exactly, is a seller's market?
Lack of inventory (i.e. homes for sale) creates an environment where homeowners can dictate the terms of the sale for their property--which keeps prices high, seller's concessions low and buyers frustrated.
My latest clients (I'll call them S&V) provide a powerful illustration of the power of a seller's market.
The Power of a Seller's Market
Two children, a cat and six years after buying a condo in the Denver Metro area, S&V were more than ready for more room to stretch their legs. Eager to create a new life, they listed their condo for sale one week after our initial meeting. The following week, they were comparing/contrasting nine competing offers for their property--all over asking price. The buyers did what buyers do in a seller's market--they got creative! The offers contained a mix of escalation clauses, inspection waivers, rent-back options and personal letters of introduction in high hopes that THEIR offer would prevail.
After careful consideration and comparison, S&V chose the offer that brought them a great deal of personal and financial satisfaction (they were moved by one of the personal letters). It's worth noting that they did not choose the highest offer; they honestly wanted to help another person in the process.
Personally, working with S&V was a wonderful experience for me. Besides a great response time on paperwork and phone calls, their family dynamic was amazing, their children well-behaved and THEY ACTUALLY MADE REPAIRS ON THIER PROPERTY! In a seller's market, many sellers are not willing to make repairs as they know buyers are lined up to purchase their property. But this property that was soon to be under new ownership, was still a home to them and their pride was evident.
Ultimately, the buyer opted out of the contract for reasons that were not fully disclosed. But the power of a seller's market came to the rescue; and the property was under contract again three days later! And S&V were again able to sift through the offers and accept one that gave them personal and financial satisfaction.
Fast forward to closing day: S&V were very happy! They were able to sell their home with less than a week of showings and close forty nine days after it hit the market (a slightly longer closing time period than our market normally requires in order to accommodate a VA appraisal).
And the most amazing power of a seller's market?
S&V sold their condo for 95% more than they paid for it six years previously. Their sales price was almost double their original purchase price!!
And the value it afforded my clients is immeasurable. Not only were they able to purchase a bigger home, they also acquired a two-car garage and a fenced in back yard. The money they leveraged from the sale of the condo was more than enough to generate a down payment on a new home. And they were able to pay off their debts with the equity. And they were able to make a few changes to the new property. And they were able to put money into savings. And the children can now walk to school. And, thanks to record low interest rates, their new house payment is only slightly more than what their condo payment and HOA dues were (but now, no more debt payments!). And the best part, for me, was the tears in my client's eyes when she said she "never thought she would be able to afford a home in this neighborhood!"
No more HOA dues (and no more worry that the dues would increase). No more storing the tools in the bathroom and the bikes on the small back patio. No more shared walls with noisy neighbors. No more competing with neighbors for parking. And, as I mentioned before, no more debts!
And that,my friend, is the power of a seller's market!
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