Dear Denver Homebuyer, You’re Not Crazy—It Is Wild Out There

Dear Denver Homebuyer,

If you have recently bailed on a showing from feeling stressed, stopped looking at Zillow, or left an open house saying “absolutely not,” you are not the only one.

You’re also not crazy.

Out there, it is somewhat wild.

House hunting in Denver can feel like a cross between a high-stakes poker game and a very chaotic episode of “House Hunters: Anxiety Edition,” and interest rates, listings priced like it's 2022, and buyer competition varying by zip code and day of the week all contribute to this feeling.

Let us talk more about what it is appropriate to do next, normalize exactly what you're feeling in full, and take a single deep breath.

Things that are conflicting that you've probably heard of:

"Buy now since rates are going to increase again!"
“Wait!” Prices will crash. It is something that is going to happen.
“There’s too much inventory.”
“There’s no inventory.”
What it is that you are looking for determines if it can all be true. This particular season is thus confusing on account of that.

There are more homes on the market at this time than we have had in many years, in particular townhomes and also condos (attached homes).
Provided that they are priced suitably and presented appropriately, detached homes located in such hot neighborhoods as Berkeley, Highlands, and Platt Park are continuing to move quickly.
Interest rates, hovering in the high 6% range, are not terrifying but not exactly exciting.
A number of sellers are now reducing the prices, but it’s because they overshot based upon wishful thinking and not necessarily because their homes are not worth it.
It is as if the market is doing it in a way if you feel as if it is playing mind games on you.

Yes, You're Tired. That Makes Sense.
You’ve probably already:

You had loved a house that you did miss out on.
By someone, something perfect was seen. The fine print was then read by them (yikes, HOA!).
For another year, you were asked whether to simply rent.
Without the overpaying, wondered if it is what you want you’ll ever get to have.
You're navigating:

Monthly payments are in fact more affected by interest rates than by list prices.
Inventory saw a surge yet that inventory is not always right.
Viewing houses not appearing so very different results in emotional whiplash, given prices $100K apart.
Since this is a big decision, and also the stakes are high, you’re tired. This current one is a subtle one, fluid in nature, and fast-changing in its behavior, as opposed to past markets in which trends were more predictable back then.

I will share a pair of quick, real stories coming from recent clients:

Erica and Mike thought they were unable to buy, as first-time buyers. Their acquisition was postponed until the late summer months. We spotted a price reduction on a house in Edgewater that sat for 30+ days. We negotiated approximately $15K below asking, and some inspection credits were then obtained. Currently, they live near Sloan’s Lake with a mortgage that is affordable.
Competing with investors made Jasmine, a buyer relocating from Chicago, nervous for her. A certain condo overlooked in view of its outdated photos was eventually found for her by us. Compass Concierge was used by her in order to refresh the interior, and it was $20K under market that she got. Instant equity.
The Tanners were in a need to sell off. They were purchasers hoping to upgrade and buy. The sale and purchase in Jefferson Park we timed within a certain three-week window, their home we got under contract after a couple showings, and seller credits on the new one we secured. Stressful? Sure. Impossible? Not even close.
Is there a certain common thread within these certain wins? Strategy. Timing. Experience. And calm, consistent communication.

Here is how you can take a proactive approach for today’s market instead of playing defense.

1. Priorities become very clear.

You need what versus. what do you want? Does a larger kitchen possess reduced importance versus a two-car garage? For the location, can you make a compromise on the finishes?

2. Understand the Numbers

Another climb of 0.5% in interest rates might well make a $25K price drop to not even matter. A buyer might save more than what one would think through getting a seller to buy down one's rate and cover closing costs on the opposite side. Together let us run through the actual math.

3. Emotion Must Be Often Kept within a Check—But Do Use Emotion Quite Wisely

Falling in love with a home is a portion of the process—staying grounded is further helped by having such a level-headed guide (hi, it’s me). I shall inform you of the good compared against the bad.

Certain Opportunities should be able to be looked for.

Homes with bad photos. Price-reduced listings. The outside properties in your target area. Quiet wins are these.

5. Ask More Questions

It is allowed when asking about some foundation issues. A single contractor for the showing can be brought. Having intelligence is being not particularly "picky".

There is not even one, so you do not need to wait until that “perfect” time.

Here are the things you need. It is for what you do.

A clear strategy
Guidance that is truthful and current.
You go with someone in navigating all of the noise.
A scheme toward advance regardless—and authorization for feeling flooded.
You’ve got this. I’ve got you. We will find just the right home for you, and we will do it all without you losing your mind.

Consider all of your options and try to make sense of all the madness, all ready without any pressure?
Let’s talk. Strategy, calm, and the data I will bring. You bring your questions.

—
Sallie Simmons
Denver is a local real estate therapist and she is also a REALTOR®.
Nostalgic Homes at Compass