My two cents, this is a terrible time for first time home buyers. I showed clients five homes on Saturday. This was the first weekend I was able to set the tour in a smart order. I think that had more to do with the clients sending me their wish list homes as they came on the internet and me immediately setting. But, all the same, showed five homes.
The new normal was in effect for these showings. Most houses, there was someone just leaving or finishing up a showing as I arrived. Most showings, there was one or two groups waiting to enter as I departed.
Crappy Homes Sell In This Market
Also on the new normal, I can’t believe the interest terrible homes get in this market. Let me give you an example. I pulled up to a really sharp two story house in Thornton. My first impression though, “can you hear all that road noise?” I shouted. Sounds like the house is next door to the Indy 500. Well, its next to 120th – very busy four lanes. I counted forty cars passing by in 30 seconds, on a Saturday.
Inside, the owners were DIY fiends. Lots of different tile flooring. The staircase had had the carpet removed, and the wood painted white with carpet runners installed. But, the wood was just the subfloor, not real hardwood. Just MDF painted white. I was unimpressed. My main concern for clients was the sound of that road. We decided to mosey along. But here’s the kicker. Today, I get an email because I showed that house. The listing agent is responding to all the interest with an email blast. That house is going to sell with multiple offers.
This is a weird, unusual market. There is no inventory. I’ve recently blogged in detail about the home marketplace in Thornton if that interests you.
Speaking of Terrible, Am Saddened Boulder Joins Terrible Club of Gun Violence
Visited the fence line that now surrounds the South Boulder King Soopers. Went on a cloudy day that reflected my feelings being there. We laid some flowers by the fence. Sharing some photos of that visit here. I don’t want to change the constitution but I do believe we can improve our gun laws. Shouldn’t we be able to do mundane things like, Go To School, Go To The Grocery Store, Go To Work, without the fear of being gunned down by some idiot?
Stats Tell The Picture
Looking at the recent statistics, a clear picture is painted. We have fewer homes listed for sale this Spring than the same months a year ago. Meanwhile, demand is as strong or stronger than a year ago. And the result is that the marketplace is seeing multiple offers for any given house as it hits the market. And first time home buyers are having to discuss Appraisal Gap coverage as well as agree to waive protections such as the right to terminate on a low appraisal or object to the condition of a house after the inspection.
Crappy Homes Sell pt ii
Another example of what I’m seeing out there. Showed a house that had fallen out of contract and was relisted for sale.
In the basement I noticed three cracks that came together – like pieces of pie. That is unusual and not a good sign to see in a basement. Also noticed a gutter that dripped constantly onto the sidewalk, which had seriously settled – more than two inches. That’s a sign of water intrusion and possibly bentonite in the soil. And also while showing the home, when I closed the primary bedroom’s door to show off a closet, the door swung open. That’s really unusual. Doors, don’t open by themselves. All of those observations suggest the house has a structural issue.
My clients made a cautious offer and lost to multiple offers. The winning offer, I was told, was for slightly more money and waived the home inspection. OMG – I feel for the buyer that is now under contract. That house almost certainly has a significant structural issue. As a Buyer’s Agent, I couldn’t recommend that course of action with a house with such a visible issue – and one that had clearly just fallen out of contract over an inspection already!
Home Buying: What To Expect Right Now
Be prepared for multiple offers. Shop below your maximum home price point to give yourself the greatest negotiating flexibility. Be ready to encounter double digit number of offers. Homes are selling for tens of thousands of dollars over list price. And buyers are negotiating away contingencies to win contracts. Like I said right off, this is a terrible time to be a first time home buyer. But, you do get low interest rates. And homes are rapidly appreciating. So, if you are fortunate enough to get under contract, this is a good market to be a Boulder home owner!