Buyer strategies in a rising Summit County real estate market ...

Jul 31, 2013 | No Responses

Buyers hoping to buy a home in a market where prices are rising have a hard decision to make when presenting an offer to a Seller. Should they do what they might have done a couple of years ago and go in much lower than asking price in hopes that a Seller is desperate, or should they offer more than list price knowing that they might have some competition from other Buyers?
The answer is probably somewhere in the middle, but it all depends on their budget and how in love with the property they are. Most people will ask their Realtor what has been working with Sellers lately and if the Realtor has had other offers accepted he or she can help. At this time in the recovering market, Sellers are often convinced that prices are moving up strongly because of positive news in other areas. Denver?s market is very strong, as are many other parts of the country. However, resort areas take longer to recover. It takes a lot of confidence that the economy is improving before most people feel ok about buying a second home and Sellers are convinced of the improvement long before Buyers. As a result, it is sometimes hard to get a Seller to move much of the list price, but it is always worth a try! If the Seller has been kept informed of local market conditions, and if they have some level of motivation, a deal can be reached.
If the Buyers are aware of market conditions, they will be able to reach their own conclusion about how fair the price is that is being asked and if an offer close to full price is suitable or not. No one wants to overpay for a property, but in a rising market, todays?s high price might be market price in six months, and Sellers count on that. As a result, they are seldom in a hurry to sell.
Ask your Realtor to provide you with history and pricing trends for the neighborhood you want to purchase in, and be an informed Buyer. You won?t go wrong that way, and an appraisal will back up your conclusions.

Source: http://www.mountain-living.com/2013/blog/buyer-strategies-in-a-rising-summit-county-real-estate-market/

Marina Krim