It’s no secret that the real estate market in Denver is on fire. Buyers currently face fierce
competition as inventory shortages cause bidding wars and sales prices often soar far above asking. What may come as a surprise to potential homebuyers is that the housing market across Colorado is also experiencing improvement, especially in the northeastern region of the state. A recent report projected the Fort-Collins/Loveland market to grow by an impressive 7.5% over the next year.
According to the Coloradoan, home prices in the Fort Collins area are rising twice as quickly as the national average, and buyers are feeling the pressure. The average home price in Fort Collins is now $432,113 compared with $313, 117 in 2014. While this is great news for sellers, buyers in the northeast are coming up against some of the same challenges as their Denver counterparts. Here are some of the challenges you can expect in a seller’s market.
1. Fast-Paced- Houses are moving fast—in just days or even hours—so you have to be
ready to pull the trigger. Casual shoppers will find no time to consider their
preferences, and by the same token, those without mortgage prequalification will be
left behind as more prepared buyers can move quickly.
2. Bidding Wars- The competitive nature of the market means bidding wars are more
common than not. Too many buyers get sucked into the momentum of the sale and
end up over budget. Avoid overpaying by determining your best offer ahead of time
and sticking with that number.
3. Must-Have versus Nice-to-Have –Due to low inventory in the Fort Collins area,
buyers might not be able to find exactly what they want. If living in Fort Collins or
Loveland is important, get ready to adjust your wish list accordingly. You may have to
sacrifice that third bedroom to be able to buy in one of these desirable areas.
4. Location, Location, Location- If you aren’t tied to the Fort Collins area, you may
want to consider relocating to an area with more inventory and less competition. Cities
in western Colorado still have plenty of inventory and are much more favorable to
5. Homework- These days, it’s common for buyers to research home purchases on the
internet. In fact, 92% of buyers will use the internet to inform their purchase in some
way. This is no time to fear technology. The more you know about the neighborhood,
comparable properties, school districts, and other factors, the better prepared you will
be to make a decision.
Even if the area you are interested in is considered a “seller’s market”, that doesn’t mean you won’t find the home of your dreams; it may just mean a little extra work. As long as you are prepared and know exactly what you want, then the process will go much more smoothly. One of the easiest things you can do to reduce the stress of buying in a seller’s market is to hire an experienced and trustworthy real estate agent. Buying a home in a hot market is hard enough, so let someone else be the expert and guide you through the process.