Denver Real Estate’s Buyer’s Market…A New Definition!
April 28, 2008 by Bob Schenkenberger · 3 Comments
In terms of Denver, Colorado Real Estate, there may be a new definition to “Buyer’s Market.”
The typical definition of a “Buyer’s Market” is one that says the conditions of the market place are more favorable to the buyer than the seller. With the number of foreclosures still hitting the market, the mass amounts of publicity to the nationwide Mortgage Fiasco and the potential long term implications it is causing, it is easy to fall into the “trap.”
Unfortunately, many homebuyer’s in the Denver area are getting a not so pleasant wake up call. My team has two separate clients that are thinking that Buyer’s Market equates to Bidding War!
Over the past month Client “A” has put in 5 bids on 2 different properties and has yet to have one accepted. Each time others have outbid them, and we are now in search of a new target.
Client “B” found a great foreclosure, and could hardly wait to make it their first home. Not wanting to lose this property, we offered full price, with a small amount credited to the buyer, at closing, for closing costs. This was a HUD owned property and, the HUD process is such that if your bid is not accepted, you are not notified directly. Rather the property remains active with HUD, and you can place another bid. Another bid was placed last Friday, and today we found out that someone else had their bid accepted, for over asking price.
The market has spoken, and it seems to be saying it wants to be redefined!
Bob has been an active REALTOR for 18 years. During this time, he has closed over 500 transactions, and has been the broker of record for 1000's more. Bob can be reached via email (bob@gethomedenver.com) or phone (303.770.1180.)
Well, given that we’ll probably try to sell and relocate within the next year or so, ‘bidding wars’ is a phrase I like reading in your blog…
But it would seem that the market here in Denver is always more complex than the ‘general trends’ in the rest of the country. We’re never quite doing what everyone always says we should be doing, are we?
You are correct! We actually tend to go opposite of the coasts. When they are booming we’re lagging, and vice versa. We’ve actually been down for well over 5 years,and I think we started the downturn in 2001 or 2002. Unfortunately, finding the trends in hindsight is a bit easier!