Hot
Colorado Market, why hiring a Professional Real Estate agent is crucial!
The perception I
think most consumers have about the Hot Colorado Real Estate market right now
is that HOT=EASY. This, unfortunately could not be further from the truth! I have been in the industry for over 16 years
and even the SHORT SALE days don’t seem to compare to the battlefield that we
are all in right now. With the historically low inventory that doesn’t seem to
be growing at even a “snail’s pace”, it’s likely that we could be in this tight
Sellers’ Market for some time.
It’s often said, “you
don’t know what you don’t know” (until it hits the fan!). In Real Estate now,
it almost always, unpredictably HITS THE FAN!
Seller’s and
Buyer’s start off pretty friendly and amicable until and when something goes
south. Below is a short list of things that can and have gone wrong just this
year alone!
1.
Appraisal comes in below contract price, lender
won’t loan on more than the property is appraising for. Buyers don’t have the
extra funds and seller won’t take less money. (this is a big reason 40% of
transactions failed in April of this year)
2.
You find out at inspection that seller has a “Federal
Pacific Panel” and your seller doesn’t have the funds to replace it. If your
buyer came with FHA or VA funding the panel has to be replaced or the lender
won’t fund? Yikes!
3.
Hail storm comes through and destroys a roof on
the home a week before closing and well past the buyer’s inspection deadline.
4.
Raccoons in the Chimney that have to be out by
closing in 3 days! ( this is my favorite as I just had this happen recently!)
We did try to ask them nicely to vacate. If you didn’t know, they are a bit
tenacious and they weren’t going to go quietly.
5.
Dishwasher leaks the day before closing
destroying the wood floors in the kitchen.
6.
House is scheduled to close on Friday and the
lender just came back with 2 “conditions of the loan” that have to be satisfied
and now closing is going to be delayed at least 3 days and buyers and sellers
have everything they own packed and in a moving van! ( yes, this really happens)
7.
Multiple offers come in on the house, which
buyer has the best type of loan for the type of home you are selling? It
matters, if you don’t want to do a lot of repairs. Loans have guidelines for
what items they may require be fixed before the lender will fund.
8.
You’re “cash” offer that was 20k above asking
bails because they don’t like the water company that services the house.
9.
Your home that is 3 years old comes back with
structural problems because the builder didn’t install the I beam correctly. Buyer
is wanting 20 k in repairs to move forward with the contract
( and yes, you guessed it, the builder
warranty just expired like 30 days ago.)
I get started on
this list and I just keep remembering all the other hurdle’s we had to get over
to get the buyer and seller to a closing table in 2016! With Buyers paying full price or sometimes
even more, they expect EVERYTHING on the home to be perfect. A good agent will handle
ALL and I do mean ALL the negotiations, as there are many. I can’t imagine the stress a Seller would be
under when they are trying to pack and get their family ready for a move and
have to be dealing with all that we deal with as REALTORS every day. I can be
exhausted after a long day in real estate,, and I’m used to it! Buyers
competing with all the other buyers in the market place need a strong agent
that can write very competitive offers and negotiate on their behalf if they
want to get a property under contract.
A good agent will be not only be a great negotiator
but a professional problem solver. Always looking for a win-win, as that is the
only mind set you can have to get a transaction closed in today’s marketplace.
I’ve never felt more like a gladiator that must also be a professional juggler
in this business, than I have in the last 2 years.
Agents are
almost always competing in multiple offer situations. They deal with some agents on the other side
of the transaction, that to be honest shouldn’t be allowed to have a license.
Sellers that think they don’t need to “give” anything and Buyers that want “everything”.
Agents are writing sometimes more than
8-10 offers on properties for their buyers before they get one accepted. Cash
as always is King right now if you are a buyer but even the last contract I
wrote for my investor that had cash.. we were competing against 14 other cash
offers. This is where a good agent with escalation clauses and other techniques
for contracts that they have learned from years in the market pays off.
I really
believe that the real cream rises to the top when the market gets hard and the
experienced and professional agents shine. Constantly sharpening our tools for
the trade and putting out fires from start to finish. We are all working harder than we ever had to
just to get the buyers and sellers to the finish line.
If you are
looking to purchase and or buy something in the Colorado Market, whether it’s
your first home, a second home, or an investment property make sure you really
know who you are hiring to represent you in a CRAZY market. A true Professional
Real Estate agent right now is about their worth in gold! Make sure you take
the time to research them and their experience. Like NEVER before, a truly
experienced agent will be the difference between if you win in this HOT market
or you lose.
Cyanda Monaco
Managing Broker
REMAX PROFESSIONALS
303-523-5562
cyandamonaco@remax.net
www.facebook.com/CyandaMonacoREMAXProfessionalsDenver/
