By Rob Kelly, LRA Owner & Managing Broker
In Colorado's current booming real estate market, we hear many stories about prospective home buyers submitting multiple offers to no avail, as well as an ongoing trend that many Denver and Boulder area listings (between approximately $300K and $700K) selling for over 100% of list price. Naturally this results in many frustrated buyers.
According to the Denver Post, "Colorado’s population in July 2016 was estimated by the Census Bureau to be 5.5 million, up 91,726 people or slightly less than 1.7 percent — the seventh-highest growth rate among states for that year. State demographers forecast that Colorado will add plenty of people through 2020, with its population nearing 6 million."
If you are one of those frustrated home buyers on what seems like a never-ending search for an "inventory" home (which is one that has been lived in, or not new construction), I'd encourage you to think about working with a new home builder in the Denver area. Particularly if you have already decided to rent for another year, after not finding your home in the spring, summer or fall, then time is on your side. At the moment, depending on the size and location of the home, it could take 9 to 12 months.
Before & After Cal Atlantic Newly Build Homes in Arvada, Colorado in 2017
It was not too long ago (maybe 4 or 5 years ago) that you would rarely hear a real estate agent in Colorado recommending that a prospective client work with a developer. Why? Well quite simply the home builders were not particularly friendly to work with and they usually would convince home buyers to work alone, without a real estate broker representing him or her. They were usually successful in their attempts since the home builders offered thousands of dollars in upgrades and closing credits. But once new home builders realized that licensed agents could be advocates and actually bring in more buyers, they started cooperating with agents. Of course, this is all good news, since I believe this gives buyers more options and protections during the transaction.
Here are a few reasons you may want to consider working with a new home builder:
- New homes are usually built with the latest technology, as well as high efficiency appliances, resulting in lower monthly utility bills.
- New homes are modern and come with some of the design elements including open, eat-in kitchens, huge storage spaces and closets, and large master baths.
- Earnest Money deposit is as low as what you might expect on an "inventory" home.
- New home builders offer preferred financing with very competitive interest rates and offer many credits.
- At closing home buyers will receive a New Home Warranty, covering specific repairs on your home at the 1, 2 and 10 year marks.
- Building process is turn key, with a professional project manager and regular updates and access to the Sales Manager.
- Private inspections are permitted, at the home buyer's expense, but city or county inspections are all included and part of the home buying process.
If you are a prospective buyer in Colorado and are fearing the amount of time it will take to find the perfect "inventory home", I would urge you to consider touring some new home developments and find out if the home designs, process and approach appeals to you. During your search, be sure to take a look at housing data for Boulder County to better understand market trends. LRA track all these market statistics for Single Family Homes (SFH) for most of neighboring towns on a monthly basis, including Louisville, Erie, Lafayette and Superior. Check out Fall 2017 market summary here. Links to related topics are listed below.
At Louisville Realty Associates, we have the experience, energy and depth of knowledge to help you list your home for the best price. You can reach us anytime at firstname.lastname@example.org.