Hi, everyone and welcome to another edition of ‘Ask the Colorado Dream House Team’. I’m Dan Polimino. Well, if you were here last week for the very first show, you know what this show’s about. If you’re new to it, this is an opportunity for us to help you navigate and strategize what can be sometimes the difficult real estate market. This is an opportunity for you to send in your questions, ask the Colorado Dream House Team about what you want to know about real estate.
You don’t have to be in Denver, Colorado like we are. You can be anywhere in the country because a lot of the information that we give out today applies no matter where you live. So three ways to get in touch with us. The first one who obviously leaves a comment or a question here on Facebook. The other is to email us at team@coloradodreamhouseteam or you can just call us and we’ll answer your questions.
Two things I want to achieve each week in the show and that is, I want to give you information about the market and what’s happening and I also want to answer your questions. Today, I also want to give you a special announcement and it’s simply this. We’ve launched the new Colorado Dream House website. To be honest, it’s a soft launch.
We aren’t really promoting it or telling people about it too much yet. We kind of want to work out all of the bugs and fix everything and make sure it’s working great before we roll out a big promotion, so I’m asking you, our Facebook fans, if you would help us and go to Coloradodreamhouse.com. Let’s get really tech-savvy here. There’s the address: Coloradodreamhouse.com. My trusty whiteboard.
All right, so can you go there and can you play around and do some home searches and click some links and see if you can break the thing for us? Then I’d love to hear your feedback and I’d love to hear your questions and comments and things that worked and didn’t work. It’ll help us out a ton, so thanks very much for doing that.
All right. Here’s a little market update. Last week, I told you about the fact that there were only 3900+ homes active on the market at the end of January. Well, we just got the February numbers in and it actually went down. I didn’t know if that was going to be possible. In February, there were only 3800 homes on the market and for sale for a city of 3,000,000 people. The shortage actually got worse by about 100 homes.
Again, there is a severe shortage of listings on the market. I know there’s a lot of people out there that are thinking about selling. Again, I want to encourage you if you’re thinking about it, now is the time. The leverage is in favor of the seller, not the buyer, so you’re probably going to get a higher price at this time with there being such a shortage of homes.
Now a couple of things I do want to tell buyers because the Colorado Dream House Team, all of us right now, we’re working with about 15 buyers that we can’t find homes for. So again if you’re thinking about selling a home, contact us. We may already have a buyer that’s looking. We’ve got about 15 buyers that we can’t find homes for. They are all pre-approved, they are all pre-qualified, and they are ready to write a contract.
Let us know if you’re thinking about selling. Also, the other thing I want to mention for buyers is you may be discouraged that you’re not going to find a home. We’re hearing some of that from our current buyers. Don’t be too discouraged because I expect really an uptick in the amount of listings coming on the market in the next 30 to 60 days.
We could see 3000, 4000, 5000 homes come on the market in the next 30 to 60 days, so don’t be too discouraged. I’m sure there’s going to be something that’s going to pop up that you’re going to like. With that, tip for buyers, if you’re not pre-qualified, if you’re not pre-approved, if you haven’t talked to a lender, if you haven’t strategized with your realtor, do it now.
Talk about when that great house pops up, about being ready to get the offer in and winning that house. There’s a whole strategy that you and your realtor should be talking about on how you’re going to beat out the other people who are going to be bidding on that house at the same time, all right? If you want some information about that, feel free to contact us at the Colorado Dream House Team. We’ll help you out.
Last but not least, let’s get to today’s questions. Question number one is, “Dear Colorado Dream House Team. We started looking at new construction, but we noticed the builders are not negotiating on their price. Why?” Short answer? Because they don’t have to. The builders know that there is a severe shortage of inventory.
They know they got you right where they want you. They know that they are filling in the gaps where inventory is falling short and so they don’t need to negotiate on price. If you don’t want to pay what they’re currently offering on that house, there’s about five people behind you that do. Now I could go into a lot more complicated answers, but that is the simplest answer.
Question number two. “Dear Colorado Dream House Team. We’re thinking about buying a rental property for investment. Is now a good time?” Well, I know this sounds like realtor speak, but there really isn’t a bad time to buy an investment property. I know what you may be thinking. You may be saying, “Well, home prices are pretty high right now. That’s why I’m asking the question.” Yes, home prices are high right now, but interest rates are low. What you don’t want is you don’t want a double whammy where the price of the house is high and the interest rate is high.
Right now, interest rate is way more important and a much bigger factor in your monthly payment than the price of the house, so it’s a great time to look for an investment property. Many of our clients have asked us about that. They are using them as a college fund for their kids, they are using rental properties as a retirement fund for themselves, and if you want to know more about that, contact us at Colorado Dream House Team and we’ll help you out.
Question number three. “Dear Colorado Dream House Team. Over the years I’ve heard you say there are three prices that come into play when it comes to pricing your home and only one of them really matters. Can you go over that again?” Yes. There are three prices that we take into account. The price that you want to sell it for, the price that a buyer is willing to pay, and then last but not least, the price that the home will appraise at.
Out of those three, which one really matters? The last one. Now the price that only matters is what can we get that home to appraise at. You do get the final say in what you sell your home for. The buyer gets to have some say in what they want to pay for the house, but the real person that matters is the appraiser because most people these days are getting a loan. The house has to appraise at purchase price in order for the deal go through most of the time.
If you want more information on that question, I can help you out there too at the Colorado Dream House Team. Well, thanks to everybody for the great questions. We appreciate it. Keep them coming. We’re back on Thursday where we may have another special announcement for you. In the meantime, have a great week.