Clever Buyers Negotiate a better Deal on Denver Real Estate

As buyers get more in tune with the Denver Real Estate market they will discover that sweet honey does a lot to help the seller agree to your price. Frankly no one cares what the other Denver homes sold for, only what this home will sell for; so do not start the battle of comparables…it does not work (see previous post).

There are 3 types of negotiating:

#1 Offer what they are asking…certainly not in most markets, but often required to be the one who actually buys a home in an accelerating market.

#2 LOWBALL the seller. Feel free to insult the Seller by saying they are crazy for offering their home for such a ridiculous price. The battle of comparable properties is never won by the “smartest” person at the table, but rather the one who can outlast the other, more often the Seller who you have just ticked off. Determining the motivation of the seller is part of the selling agent’s job. And they really have to ask those questions well. The Seller normally will not give in.

#3 Close Enough or KICK in the SHIN negotiating: If you were the Seller, and you had priced your home at $X, what would you be willing to take? Then slice it a little thinner and offer a hair less. Most Denver sellers will have a price in mind when they put their home on the market and a clever buyer will see what that number is and then offer a little bit less expecting someone to say “I am tired of cleaning, vacuuming, taking care of…” TAKE THIS OFFER. IT IS CLOSE ENOUGH! Can’t you almost feel the jab in the ribs or kick in your shin here?

Yes, I am willing to help anyone negotiate a good deal, in any manner they want, but experience has proven over & over in thisDenverreal estate market that a clever buyer can get a better deal than a brute force buyer who low balls the seller. If you want to talk about this, call Pete Doty, Denver Realtor at 303-880-5585.

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Negotiating That Killer Denver Real Estate Deal

Denver home buyers are a bit frustrated, thinking the sellers have to accept low ball offers. And they are being rejected. Sellers are getting multiple offers. Will low ball offers still work? This Denver Realtor says “Don’t do it!”.

The fact that the inventory of homes available (forget that the foreclosure and short sale homes in Denver that were driving prices lower early last year have left the market) seems to have eluded some folks. I still hear Realtors across the country advising their clients (but not in so many words) that it is OK to insult the seller, and tell them their home is not worth what they are asking by saying the comparables do not support the price. Naturally theDenver listing agent’s pride is also damaged at the same time (as hard as I try not to let it affect me, I do get angry when I start to get my nose shoved in it, without cause).

I do not think theDenverbuyer’s agent has missed the point that the market has changed. They do owe a duty and obligation to their client to present any offer the client wishes to make, but at what cost? A seller who thinks your offer is a joke, or is offended, is much less likely to negotiate a fair deal with you. So what is gained?

Here is the bit the Buyers may be missing regarding their offer…It does not matter what the other houses sold for last year. That is old news. What matters to the appraiser first is that there are comparable sold properties that have sold for the same or higher price in the last 6 months, and that when adjusted for improvements, location, condition, they will support the contract price for this property. Then the appraiser checks to see if the property could be replaced by others on the market at a lower price, and then adjusts for improvements, location and condition.

It is interesting to note that back in the height of theDenverreal estate market there were so few homes available we counseled our buyers that the best price we might be able to get for them was getting them there first. In our sales meetings we used to joke that the market would catch up to our price if we were patient.

Today, inDenver, our single family home real estate market has 40% fewer available properties versus this time in 2011, while the number of closed sales are up 12% in February. This means the Seller has more prospective buyers per house for sale and is more likely to have multiple offers.

More to come…

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Highlands Ranch Colorado Real Estate for sale

This home explodes with volume as you walk in! Glorious vaults and openness greet you, as well as an art Continue reading

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Selling Real Estate for Food – Feeding the Hungry…Denver Realtor – Pete Doty

Support Nehemiah Global Foundation’s efforts to supply Denver area food banks with fresh fruits and vegetables by Denver Realtor Pete Continue reading

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Denver Realtor offers 6514 Umber Cr- Arvada.wmv

TWO! Count them…2 master bedroom suites. And a guest room with private bath. 3 car TANDEM garage. Granite & stainless Continue reading

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Highlands Ranch Colorado Real Estate by Denver Realtor

This home explodes with volume as you walk in! Glorious vaults and openness greet you, as well as an art Continue reading

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Denver Relocation Testimonial for Denver Realtor Pete Doty

Denver Realtor,Relocation Client,west wash park

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Denver Realtor reports from Cyberstar Summit in Fort Worth

Denver Realtor talking about learning new stuff

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Denver Realtor ponders “what is this spreadsheet telling me?”

I stare and stare and wonder what it is that is supposed to be plain and obvious in front of my face. Ever been there? Well, once a month I subject myself to that to make sure I am staying current with the Denver Real Estate market.

At the very beginning of this year the local MLS provider published some figures for last year. Admittedly, their data must be flawed because they always post early in the cycle. But they are consistently bad, so I guess that is good. An example: MLS data indicated on 1/3/2012 that 1857 single family homes sold in December and on 1/24/2012 that number was 2184 (my personal search criteria on 2 different dates).

Anyway, what I was going googly eyed over was this real estate listing and sale data in Denver. 2 things I saw after a while…1: when the average number of active listings went down below 10,000, the average price started to climb and 2: The actual number of closed sales also tends to increase? Fewer listings but more sales? Only in Denver!

Some folks have focused on the average asking to the average sale price thinking there is a correlation… and I am here to say there are more folks dreaming big and testing the water when the market proves to be upwardly mobile.

Year # Active Average Asking Price # YTD SOLD Average SOLD Price
1984 18142 98678
1985 19430 98071
1986 20002 100612
1987 19777 105771
1988 18240 101577
1989 11846 121696 19272 103868
1990 9869 140245 20476 102766
1991 8563 151705 21547 109071
1992 7922 157538 27215 115154
1993 6282 196067 30763 126168
1994 7028 230011 29710 138301
1995 7984 238346 27810 150736
1996 8708 237997 29522 159328
1997 8866 249318 30981 169587
1998 8063 276971 35139 185785
1999 6571 306958 35500 208296
2000 6898 353590 37012 239779
2001 9247 360826 35888 257394
2002 15190 357050 36272 268926
2003 15498 355900 36677 277856
2004 14332 370038 41682 289971
2005 16428 381777 41365 307529
2006 18109 331231 39208 317112
2007 18709 424390 38845 310418
2008 14995 511601 37988 270261
2009 12263 496675 33114 264803
2010 13941 409416 30777 282080
2011 8854 470408 31437 279858

Let me know your thoughts…Is it time to buy? Time to sell? How could I help you?

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Make some money this year ;-)

If you had purchased $1,000 of shares in Delta Airlines one year ago, you would have $49.00 today!

If you had purchased $1,000 of shares in AIG one year ago, you would have $33.00 today.

If you had purchased $1,000 of shares in Lehman Brothers one year ago, you would have $0.00 today.

But, if you had purchased $1,000 worth of beer one year ago, drank all the beer, then turned-in the aluminum cans for recycling, you would have received $214.00.

Based on the above, the best current investment plan is to drink heavily & recycle. It is called the 401-Keg.

A recent study found that the average American walks about 900 miles a year. Another study found that Americans drink, on average, 22 gallons of alcohol a year. That means that, on average, Americans get about 41 miles to the gallon!

Makes you darned proud to be an American!!!

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