Shift to seller's market in pikes peak area
The Pikes Peak Region is shifting to a seller's market in home purchases. It is becoming a seller's market. Low ball offer prices for a home aren't cutting it anymore. Veteran realtor, Gayle Nichols with ERA, Herman Group in Colorado Springs has seen the switch over time. Sellers don't have to jump at the first offer anymore. They can wait for a more reasonable price says Nichols, "We had a 20-thousand dollar low ball offer and the seller has just put in air conditioning and updates to the property. He could afford to keep it at a low ball price."
Nichols also told me, financial institutions that are handling short sales and foreclosures are also into not accepting low ball prices, "The banks have actually come back, even if we are under contract for 189 thousand and they'll come back at 207-thousand and 20-thousand dollars higher. The banks are not even letting the houses go for a low ball offer."
According to the Pikes Peak Association of Realtors, we're on par with what prices looked like in 2007. The average and median home prices have been steadily increasing since 2007. The average price for a home in the Pikes Peak Region is a little more than 243-thousand dollars. The median price for a home is nearly 210-thousand dollars.
Another part of the equation for a seller's market is low interest rates. Sellers watch the rates, too. They know a buyer can get more for their money, so they can wait for the right offer price.
You can still find a good deal even in a seller's market.
Here are three tips for buyers to make that happen:
Check and see how long a property has been on the market. It might give you a better feel for you and your realtor to work with the seller's agent to come up with a realistic offer price...
Make the cleanest offer you can on paper that has the fewest contingencies, like don't make the purchase of the new home contingent on selling your existing home..
Finally, decide on your offer what is more important. For example, specific concessions like buyer's closing costs or a lower overall price on the home. You have to be realistic with your offer. You probably are not going to get both in a seller's market.
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