While economic turmoil is certainly taking place across the US, the housing market appears to be booming. People searching for homes are struggling with high prices, limited inventory and tough competition across the board. Many buyers have taken advantage of record low interest rates and in turn have rewarded those buyers that took a chance on listing their homes during such an uncertain time.
“Some analysts question if the housing market can maintain its momentum, given the expiration of enhanced federal unemployment benefits this month, a pullback in forbearance programs that forestall foreclosures, and a resurgence in COVID-19 infection rates that is forcing more business closures.
CoreLogic, which lists metro Denver among its overvalued markets, is predicting a 9% decline in home prices here a year out. Its reports also note that U.S. mortgage delinquencies, after 27 straight months of declines, spiked in April to their highest level since January 2016.”
To read more predictions about the Denver market find The Denver Post article here.
When buying a new build, you might think that the friendly salesperson sitting oustide the model home in the office is there to help. And you would be right! However, even though they may be incredibly kind and eager to help, that salesperson represents the builder and is there to look after the builder’s best interests. Having a buyer’s agent represent you while purchasing your new build could be incredibly beneficial to you. Here’s why…
✩ A buyer’s agent may be able to help you negotiate price. Even if the builder is firm on the sale price, they could be flexible on covering closing costs or including builder upgrades. An agent can help you with this process by making a well informed decision based on the market value. **Many buyers are led to believe that they have to pay the agent’s commission and therefore could get a better “deal” by not using one. This is not true. Reputable builders have funds specifically allocated to pay your agent’s commission and this should never affect what you should receive as the buyer.**
✩ Realtors can give guidance on the best time to buy a new build. When builders break ground on a new phase of construction generally the previous set of homes will go up in price. Having an agent that understands this process could get you the right deal at the right time. They can also recommend any resources you might need during the new home transaction such as home inspectors, structural engineers, movers or handyman services. Your Realtor has relationships with many of these professionals.
✩ Model homes dispay the best features that can be added on to any new home build, for a price. Your Realtor can help give you an idea of what to expect as standard features and what would generally be considered an upgrade. Although this can vary builder to builder, your agent will have insight into what you could get from another builder at standard cost vs. being considered an upgrade elsewhere. An agent can also help guide you in picking design finishes that they know are appealing to buyers for re-sale value.
If you’re looking for a Realtor to guide you through this process, I’d love to help! Please reach out to me with any questions at 303-868-0512 or email@example.com