We have seen a lot of exciting media stories about how red-hot the Denver real estate market is. However, the headlines have been focused on the outliers and fail to tell the truth about the overall market.
If you are a buyer, listen up!
Second-quarter stats tell us that the average premium paid by a buyer for a house was 2.4%. On average, homes sold 2.4% above the asking price in the second quarter of this year. So, on a $600K home, it was about $12,000 over asking. When you see a house selling for $100K over asking, that is an outlier that does not happen very often.
As you can see on the chart, generally speaking, the smaller the home or the condo, the larger the premium paid. The largest was homes between 1,000-1,349 sq. ft. These sold at about a 3.5% premium to the last asking price. Bigger homes, 3,000+ sq. ft., sold at 0.3% premium. So, just a couple thousand dollars above the asking price.
Flexibility as a Buyer
If you are currently writing offers, do not assume you have to offer over the asking price. You do not need to give up your appraisal or waive your inspections. The market is not as hot as it was this spring, and you have a lot more flexibility as a buyer.
If you have further questions about buying or selling, please do not hesitate to reach out to an agent on our team as soon as possible. We also offer up to 40 free classes a month to our agents and their clients. There are in-person and/or virtual formats available. Check out our training calendar for the most up-to-date offerings. Be sure to check out this video with our founder, Lon Welsh, for more details on the home buying process!