…How To Sell Your Condo in Denver – Update

March 12, 2012: Recent changes to the FHA borrowing guidelines are going to make it even harder for buyers to qualify for loans. These rules don’t take effect until mid-April, so if you have been thinking of selling or buying a condo, keep reading.

There has been a lot of news – mostly bad – in regards to the Denver condo market. Even though it comprises a significant segment of the Denver homeownership population, condos have been taking a beating, both literally and figuratively, from banks, the FHA, careless tenants and appraisers.

What few people are talking about is that the condo market has some strong pockets in it – especially for well-qualified buyers. There are more than a few buildings in Denver that have strong HOAs, deep reserves and active boards, but may have not elected to get FHA approval in order to allow FHA buyers to own in that building. Or, because of the complicated and often confusing manner in which the FHA reset their expectations for qualification, these buildings either chose not to renew or didn’t know how.

Here’s a site that can help cut through the confusion: Denver Condo Help. A collective of experienced real estate agents in Denver have compiled lenders and condo resources that can help you sell your Denver, regardless if your building has FHA approval or not. Check it out!

The site to help you get your Denver condo sold.

Karl Lueders is a residential Realtor with The Kentwood Company at Cherry Creek. He can be reached at 720.971.8267, email, Twitter or G+.

 

 

…Low Real Estate Inventory Could Mean Higher Home Prices Soon

The Denver housing market is currently both a buyer’s and seller’s market. Here’s how:

  1. Buyer’s market: You have a lot to choose from. As of today, there are 16,174 single family homes for sale that have been on the market – 11,062 of them have been on the market for more than 30 days (not including condos). That’s a lot of overpriced and likely underimproved homes. As a buyer, you can feel confident about this and take a run at these houses with somewhat low offers (lowballing may be a larger part of your strategy). The remaining 5,112 homes? Less so with the lowballing, depending on how long they’ve been on the market, but today’s inventory doesn’t age like wine. The current inventory has been sitting stagnant on the market during one of the lowest supply eras the Denver market has ever seen. One industry wonk calls the amount of Denver real estate for sale for sale “painfully low.” And, with pent-up demand from buyers, it’s clear that this current supply is not that attractive in its current state. Of course, this also means a large amount of disillusioned sellers, so any deal out there will require diligence and perhaps some good timing.
  2. Or, you can avoid dealing with unrealistic buyers and be part of the current madness amongst the new inventory that’s slowly emerging… The Sellers Market. With rental rates skyrocketing and interest rates remaining incredibly low, buyers have finally realized that owning a home in Denver is actually more advantageous than renting. The downside to buyers is that there are plenty of you out there, stalking new listings whenever they hit the market. Low supply + demand = multiple full price offers. We have gotten to a point in Denver where a home seller will know what the market thinks of their house in about 4 days… sometimes less.

The cure for this is more inventory. Correction, more good inventory. If your house is priced correctly with the right appearance and proper lead time, you can be sure to get a flood of qualified buyers through your house right out of the gate. With proper preparation, you might even be able to bypass the sign/brochure/constant cleaning phase of the process and go straight to contract negotiation. Which, for some people, is worth the pain of realizing that market value doesn’t necessarily equal seller’s value.

Karl Lueders is a residential Realtor with The Kentwood Company at Cherry Creek. He can be reached at 720.971.8267, email, Twitter or G+.