Monday, August 4, 2008
Consumer confidence in the market continues to ebb and flow due to all the negative national press. The truth of the matter is that the Denver market continues to hold steady on pricing. Some properties, if priced right and exceptional in finishes-will go under contract in 1 day and to multiple offers. This particular situation just happened to my client and I while submitting a contract on a home in Berkley. We wrote an offer on the house the first day it was on the market and we were one of 4 offers. Unfortunatley we lost out to a cash offer- fortunately, that deal fell through and we resubmitted our full price offer. Thus successfully putting the house under contract. The real twist to this story comes on appraisal deadline. The value of the home was not of question to my Buyer and I as we had seen over 20 properties in the same price range and were well versed on the comparable sales. However, due to the ultra-conservative direction that the banks have currently taken, the appraiser valued the home at 15k under our contract price. Needless to say, we were all astounded. The good news is that we re-negotiated our price and my Buyer was able to get a substantial discount. Banks are having appraisers only go back 3 months for comparable sales-and it seems as though, they are also having them use the lowest comparable sales rather than the highest. Interesting times indeed. The moral of this story. . . .it is an excellent time to buy. Enjoy the following article on the current state of our Denver market.