I have been in the real estate business in northern Colorado for 20+ years, and the number one question I get asked is this: How is the market? Though there have been periodic drops in real estate value, Colorado has enjoyed an average of 5 percent appreciation over the last 70 years. This past year, the appreciation rate was almost 9 percent!
So, a broad answer to the question, “How is the market?” Do you own an investment real estate property or looking to add more to your portfolio or even a second home? If so, it’s a great market for you. If you don’t own one of these types of properties, it might feel like the prospect of owning one is a train barreling away from you. However, now is a great time to take advantage of a real estate opportunity, whether it be as an investment that can be used for short term rentals or for your personal family’s enjoyment, is almost always a great idea.
You might ask, “What does this mean for me?” If you are a seller, it is a great time to be in the market. Inventory levels are the lowest they have been in several years. The average number of days a property is on the market and the average number of days to receive an offer are very low. If a home is priced correctly, sellers receive offers as quickly as 24 hours after the listing date and sometimes above the asking price. The key is making sure the home is priced correctly. This is where the expertise of a realtor comes into play. The agent can help the seller realize the greatest return on their investment.
If you are a buyer, it may be hard and frustrating to purchase property for the exact same reasons that the market is great for sellers right now. Many buyers are finding that they have to make quick decisions that involve making the best offer on their first offer. However, as a buyer, one has to be patient. Buyers may need to visit several properties before they can sign a contract on their new home. Again, working with an agent who supplies listings that meet the buyer’s criteria is always important.
For buyers, a good solution might be buying a new property. Many builders have homes in various stages of completion. If possible, it is wise for buyers to take advantage of these inventory homes. Once again, it is invaluable to have a real estate professional in your corner. They can give buyers and sellers the necessary guidance to help them navigate through all of the communities, builders, and homes. Your agent can help you determine if a dirt start, which will take more time, or an inventory home, which may limit personal options, is best for you. The point in the building process that the buyer comes into will determine whether or not they get to choose the designer features. If a home is put under contract early, the buyer will get to choose. However, if it is later in the process, the design professionals will choose design options that most buyers would probably love to have in their home!
Whether you are selling, buying, or building, it is important to have a realtor/real estate agent on your side that can advocate for you. If you are ready to make a move, feel free to give me a call-- I’d love to help you!
R.D. Baker- broker and partner with Ambassador Colorado Real Estate.
970.443.6137 | rd@ambassadorcolorado.com