We know what it is like…you finally found your dream home, you are ready to make an offer and you are finally ready to close the door on your real estate journey…but wait! What if I told you that making an offer right now versus a week or even a few months from now can save you thousands of dollars? Wouldn’t that be nice?
When it comes to real estate, it is more of a game of patience versus a transaction. Many of you probably stay awake at night wondering, when should I buy? When should I submit my offer? Am I getting a good deal? Do not worry…these are all natural thoughts that come to mind when making the largest purchase of your life.
As you would expect, majority of all first time listings that hit the market are priced at or above market asking price. Why? Well…people are greedy, have high expectations and are unwilling to budge (At first at least). In fact, majority of all first time listings are priced 101% higher than the market asking price…but did you know that within only three months of a new listing being on the market that price will DROP to 92% of asking price?
If there is one thing that you NEED to focus on and pay close attention to it is this simple comparison. The number of days a home has been on the market versus the percentage of full asking price. Confusing? Not really…take a look at the graph below:
These are important numbers to understand not only for buyers but also for sellers in the real estate market. The main takeaway here, for buyers, is to understand why and when it is acceptable to submit an offer under asking price. Long story short…the longer a house sits on the market the larger opportunity you have to submit an offer that will not only save you thousands of dollars but will still allow you to get into the home of your dreams.
For all of the sellers in the market, we can use these same numbers to tell us when it might be a good idea to adjust your asking price. Yes, we understand that home sellers never want to hear those words but in most cases it is the best thing that you can do. If it has been a month and no offers, this is a clear sign that your home is simply not priced to sell. That said, it might be time to consider adjusting your asking price by 5%.
As mentioned before, real estate is more of a game of patience especially when one is trying to be smart and save themselves thousands of dollars. That said, a game of patience can often turn into a game of hesitation. As we all know, the Denver real estate market is BOOMING! In all means, if you are ready to pull the trigger and are confident in your decision then do not leave any room for hesitation, as your dream home might become a home of the past!