Be a strong first time home buyer 💪🏼🏡🌟
The current real estate market is brutally competitive, especially for first time home buyers and this is how I see it at first hand on a daily basis. The phone rings, it’s a past client who has bought/sold a house a couple times through my team and they are wondering how son/daughter, sister or friend can buy their first home. My reaction is, happiness of course because we reconnect and I hear how they family has grown, the kids went to college, etc. The next thing is well, let’s set a meeting with the buyer and talk about his/her case that way I can tool her up for success!!
Motivation and needs, one of my first questions will be, what is making you think about buying a home? the most common responses are; Now I work from home and rents are high, we decided to home school our kids and we don’t have enough room, I started a new business and run it from home, I want to jump on the real estate train before prices get higher, my parents are now living with us and we need a house, etc. The bottom line is COVID changed the world and now more than ever, having a place of your own Is key for many people. If you are renting on many occasions, you will pay the same monthly payment when buying a home. Our Team Altitude loves understanding the buyer’s goal, this way we put all efforts into motion to make it a reality.
How is the market? Well let’s dig into it because I think the buyer needs to understand the world that they are about to submerge themselves into. This time around last year during February or March there was 4,200 properties for sale each month in the Denver Metro Area, this year 2022 in the same months we only have approximately 3500 per month, that is 16% less properties. To have a point of reference prior to covid any month during 2019 we had between 13,000 to 15,000 properties for sale. Median closed price during 2021 was $455,000, same month 2022 it is $541,838 that is a 19% increment in value. And finally, homes are advertised for an average of 5 days before receiving multiple offers and going under contract. This leaves us with a greater demand than the amount of inventory the city has to offer. Therefore, a first-time home buyer needs to be prepared to compete strongly against other offers.
Pre-Approval for a loan. We will suggest different lenders who specialize in first time home buyer programs, they will prepare the buyer with the dos and don’ts, they will explain how to obtain funds for down payment and steps of preparation if the buyer is not quite ready to qualify. Team Altitude is constantly coordinating with lenders to hold buyers hand every step of the way until they can be pre-approved.
Strategy to win an offer. First, we talk about structuring winning offers, we will discuss appraisal gap clauses and other strategies to make the offer stronger, giving the buyer a better chance to get an offer accepted in this Denver Metro Area competitive Real Estate Market. We talk about lease back requested by the seller post-selling, inspection clauses and deadlines in general.
Second, we prepare the buyer for a high phase week or weeks of showings, Our Team Altitude is ready to show properties the same day they hit the market, one of our team members will set up a time to see it, flexibility from the buyer to accommodate showing appointments is a must. The sooner the buyer visits the property the better. The buyer becomes part of our team to make the process a success!
Third, we find the right home for you, Let’s write that offer. We will obtain as much information as possible to learn about the property. Details such as how and when the seller will be conducting the review and acceptance of offers and any other detail seller plans on keeping into consideration. The offer is well explained to you and to the agent representing the seller. We will keep great communication with you and the seller’s agent until offer is accepted or declined. When winning the offer, the next step is going under contract! Congratulations you are well on your way to close in 30 days! If we must go back searching for homes don’t fret, you are well informed and tooled up to soon win an offer!