Hot Real Estate Market Leaving Buyers With The Blues
ENGLEWOOD, Colo (CBS4) Homes in the Denver Metro area that are priced less than $500,000 are selling in a matter of days. One house that CBS4 found in Englewood was priced at just under $400,000. It was on the market for 8 days, had 40 showings, 5 offers, and is under contract for full price. The problem for the people selling the house is they can't find a new house to buy.
"I would say, more than anything, it's heartbreaking," said Faye Zandi, a frustrated home buyer.
Zandi has three children and is co-owner of Zandi-K Aveda Salon off of 6th Avenue. She's in the market to find her dream home and has a budget of $400,000. But every time she finds a house she likes, it turns into a bidding war.
"Sometimes, we'll look at a home and by the time we get back to make an offer it's actually already under contract," Zandi told CBS4.
"The problem that we have now is that we have more buyers than we have inventory in real estate," said Nicole Wadsworth, a real estate agent with New Era Realty.
Wadsworth has this advice for buyers struggling to get a foot in the door. Write a cover letter to go along with your offer.
"A lot of times offers come in and it's just number and a name. If you can personalize yourself and get yourself connected with the seller that definitely helps," Wadsworth added.
She also suggests an escalation clause added to the offer.
"You would write an escalation clause saying that you will agree to increase your purchase price in increments of $500 up to a point where it exceeds the other offer by $500," Wadsworth explained.
The buyer should include their top offer and require the seller to provide copies of competing contracts.
"This is not the market for low ball offers," Wadsworth said.
"When we go to see the houses it's just like a feeding frenzy. There's people just all over these houses," Zandi said.
Zandi and her family are living in temporary housing right now after they sold their house in just 5 weeks. They refuse to unpack any boxes because they're hopeful they'll find their dream home soon.
Real estate experts say this sellers' market won't last forever. Analysts expect the market to even out in about a year.
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- Written for the Web by CBS4 Special Projects Producer Libby Smith
