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Real Estate News & Market Information

Hi ,

The Spring real estate market is in full swing! Again, sellers are in complete control as inventory is low, demand is high, and multiple offers from home buyers is the norm.

To be successful, home buyers MUST consider including appraisal gap protection, inspection waivers, post-closing occupancy agreements, and more! If you are not familiar with these important offer details, please read this newsletter for an explanation.

Whether you are buying or selling, it is important to understand what is happening in the market right now. Sellers are focused on obtaining the highest price, but savvy buyers are finding ways to successfully win in a competitive market situation.

If you or someone you know are planning to buy or sell, contact me today and let’s talk about your plans. My consultative approach to real estate continues to receive positive reviews and top customer service awards. Give me a shot - you won’t regret it!

Todd Holmes, Realtor®️ RE/MAX AllianceMobile: (303) 570-3419Email: [email protected]Website: https://www.toddholmesrealestate.com

Once again, I have been recognized as a top agent in the Denver metro area based on my high level of service and sales volume. Thank you to my many clients for your ongoing support and positive feedback!

Todd

Real Estate Terms in the New Market

Anyone buying and selling right now (and in the future) needs to know what these real estate terms mean and how they are used in a real estate sale.

Appraisal Gap

The vast majority of offers for real estate these days are for more than the asking price of the home. While the offer price is not a determining factor in a real estate appraisal, sellers are concerned that a high offer might exceed the appraised value of a home. More importantly, sellers want to know that the buyer can and will make up the difference at closing. The difference between the contract price and the appraised value is called an Appraisal Gap. Top offers from buyers are agreeing to pay any shortfall from a low appraisal at closing.

Post-Closing Occupancy Agreement

With low inventory, home buyers who need to sell their current home are finding ways to get their home sold and negotiate to stay in their home until they find a replacement property. A Post-Closing Occupancy Agreement is basically a short term rental agreement between a home buyer and seller for up to 60 days. To make an offer stand out, some buyers are not charging rent to a seller when they offer a ‘rent back’.

Inspection Waiver

Another tactic home buyers are using is to limit contract contingencies including a home inspection. While this is never advised, buyers are willing to consider a full waiver or limited inspection contingency to make their offer stand out in a crowd.

While these strategies are worth consideration, I always provide my clients with a detailed market evaluation of a property with recommended contract details to help your offer get the most consideration. Contact me today if you have any questions or are interested in learning more about my real estate services.

Recent Sales

Is Now a Good Time to Buy a Home?

Many consumers are wondering what will happen with home values over the next few years. Some are concerned that the recent run-up in home prices will lead to a situation similar to the housing crash 15 years ago.

However, experts say the market is totally different today. For example, Odeta Kushi, Deputy Chief Economist at First American, tweeted just last week on this issue:

“. . . We do need price appreciation to slow today (it’s not sustainable over the long run) but high price growth today is supported by fundamentals- short supply, lower rates & demographic demand. And we are in a much different & safer space: better credit quality, low DTI [Debt-To-Income] & tons of equity. Hence, a crash in prices is very unlikely.”

Price appreciation will slow from the double-digit levels the market has seen over the last two years. However, experts believe home values will not depreciate (where a home would lose value).

To this point, Pulsenomics just released the latest Home Price Expectation Survey – a survey of a national panel of over 100 economists, real estate experts, and investment and market strategists. It forecasts home prices will continue appreciating over the next five years. Below are the expected year-over-year rates of home price appreciation based on the average of all 100+ projections:

• 2022: 9%

• 2023: 4.74%

• 2024: 3.67%

• 2025: 3.41%

• 2026: 3.57%

Those responding to the survey believe home price appreciation will still be relatively high this year (though half of what it was last year), and then return to more normal levels over the next four years.

What Does This Mean for You as a Buyer?

With a limited supply of homes available for sale and both prices and mortgage rates increasing, it can be a challenging market to navigate as a buyer. But buying a home sooner rather than later does have its benefits.

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I am a residential real estate expert serving clients throughout the Denver metro area. If you, your family, friends, or coworkers need a Real Estate Agent, contact me today. I’m always available for you and your referrals.

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