This morning I stood outside of a quaint Tudor single-family home in Berkeley – period details, close to the park, and move-in ready condition. The client was already in love with it before walking in, and we knew they would need to be competitive with their offer if they wanted the home.
The last agent was just leaving with their clients, and it was time for our 15 minute private showing. To adhere to Covid restrictions, only one group is allowed to tour a home at a time for typically a max of 15 minutes, and real estate agents are scrambling to get the best time slot for their clients. The seller’s agent already shared there were eight offers over asking. This has become a typical scenario in North Denver for any desirable home.
North Denver’s real estate market isn’t just hot, it has buyers feeling more like they are walking into an inferno. With 17% year-over-year appreciation last year for single family homes in the Denver Metro, there is an urgency felt among many buyers to find a home quickly before they are priced out of their desired home and neighborhood.
Contributing factors for this seismic appreciation include: very low inventory (in part caused by suppressed movement with the pandemic) and record low interest rates. With interest rates predicted to stay low in 2021 and inventory to also remain low, expect North Denver’s real estate market to stay hyper-competitive and prices to continue to rise.
Tips to navigate North Denver’s competitive real estate market:
- Pre-Approval – Before starting the home buying process, I strongly encourage any potential buyer obtain a pre-approval letter indicating you are a qualified and serious buyer. Your lender can provide this letter. If you do not have a lender, ask your real estate agent for a list of recommendations.
- Be Prepared to Act Fast – North Denver’s real estate market moves quickly. The average number of days on the market in December for a home in Berkeley neighborhood was only 9 days. If a new listing pops up, try to see the home immediately. Time slots to tour a newly listed home will fill up quickly. If you can’t go immediately, have your agent show you the home via Facetime or another app.
- Good Communication – I encourage buyers to find an agent they feel has clear and consistent communication. Remember a buyer’s agent is not only talking to their clients but also representing the buyer to the seller’s agent. A good buyer’s agent will be reaching out to the seller’s agent to find out what the seller’s situation is before putting in an offer. Does the home have other offers? What is the seller looking for in the sale? Perhaps the seller has already relocated out-of-state and wants a quick close or maybe the seller is hoping to “rent-back” the property for a period of time while they find their next home. You and your agent can present a stronger offer knowing what the seller wants.
I recommend those on the fence to start looking now to try to take advantage of the low mortgage rates and before homes appreciate even more. While inventory is low, there are still homes going on the market every day in North Denver. Happy house hunting!
Nicole Danner is a local North Denver Real Estate Agent with Green Door Living. She lives in the Berkeley neighborhood in a 1910 bungalow and loves sharing all of her favorite places in North Denver with her clients. Please feel free to reach out to firstname.lastname@example.org or 303-386-5457 when looking to buy or sell your next home or follow her online at @NicoleDannerRealEstate.