BUYERS & SELLERS

How to be a buyer in a seller’s market

It’s no secret that the real estate market is dynamic. Much like waters ebb and flow in the rivers that run through our region, so does the state of the housing market in Southwestern Colorado. Since August of 2020, a combination of factors created a housing boom. In turn, this established an undeniable seller’s market in real estate. What is a seller’s market? It is a marketplace in which there are fewer goods available than there are interested buyers, giving sellers the ability to dictate prices. According to the National Association of Realtors, homes continue to move quickly across the U.S. On average, a typical listing is available for less than 14 days. Nationally, consumers are looking at rising rates, and first-time buyers make up nearly 30% of the market. Bidding wars begin between buyers because of low inventory and high demand, which drives up the median price for all homes. It’s the same story for people living in Southwest Colorado. Durango Area Association of Realtors released data from the second quarter of home sales in La Plata County. The median cost for a home hit $625,000 in La Plata County, which is an 18.6% increase since the same time last year. So where does this leave buyers interested in relocating? Here are some tips.

n Consider areas with slower overall price growth. The option to work remotely has given many buyers the opportunity to settle in rural areas without worrying about the commute. Consider a variety of neighborhoods when searching for a home in the region you want to live.

n Get pre-approval or have your funds ready. Speed is the way to go if a buyer is interested in a property and wants to make an offer.

Real estate professionals suggest that buyers be “offer ready,” which means having a mortgage pre-approval letter or proof of funds for a down payment ready to go. Failure to have funds in check can slow down the process or compel sellers to reject an offer.

n Work with a real estate agent. These are complicated times and it pays for buyers to have a professional working in their corner.

Local real estate agents and brokers use their knowledge to make a timely offer and negotiate on the buyer’s behalf. They may also provide insight into specific neighborhoods, amenities and school districts.

n Eliminate some contingencies. Contingencies are factors that must be met before a sale can be complete. A common contingency is the need to sell one’s current home before closing on another.

Asking for extended closing periods or certain home repairs are some additional contingencies that can make buyers less attractive to sellers.

n Make it personal. Buyers can offer a personalized note with the offer that may connect with the seller emotionally and set them apart from others who have made similar offers. n

Buying or selling a home? I can help

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Deborah S. Archuleta

Independent Broker/Owner

970-903-2817

Office: 970.883.3327 deb@archuletaproperties.com