Hey its Rex Jarnagin with the Elite home team. Thanks so much for watching this video. I just wanted to cut a real short video and kind of tell you what’s going on. If you’re not in the market, It’s really interesting stuff. It’s insane out there, perfect time to sell, you keep hearing that. I’m sure that you are aware of that. The best market Denver has ever seen. That’s true. We have the highest affordability in history for buyers and the lowest interest rates. The closest competition that Denver’s ever seen for sellers, but there’s something you probably don’t know. The number of real estate deals, transactions, falling out of contract last month was double the norm.
The Denver post wrote an article a few weeks ago that 23% of all real estate transactions fell out last month. I’ve heard a statistic as high as 30%, 1/3 or 1 in 3 deals fell apart. You know that’s well over double the normal and I think it’s about double the record. Why? Why are all these deals falling apart and why is the market so complicated? The market is really complicated.
We have a pretty good idea as to why things are so rough out there; which record low inventory there’s a lot of animosity with buyers and sellers. Most real estate agents just don’t have the experience or the expertise to navigate this market. Most real estate agent close between 4 and 12 deals per year and you just don’t have the experience when you’re not working on it any more than that. It’s just too complicated.
The second problem we’re having out there a lot is appraisals. The properties go under contract and they’re getting overbid and they’re going higher than the comps show and the appraisers won’t allow that to happen. If an agent doesn’t have the experience on how to work with an appraiser and how to get the property appraised right; it falls apart. That’s happening a lot of the time.
The third thing is frustrated buyers are bidding higher than they’re comfortable with. So they’re getting outbid over and over and over on their offers so their next offer is so high they go in and then they go in and once they get under contract the realize how uncomfortable they are with that payment so they’re backing out. Having a good agent working with the buyers and sellers keeps that from happening. It’s very important.
The fourth thing is just sellers are unwilling to compromise. They’re very confident, over-confident, and when you’re getting through the process the sellers just aren’t willing to compromise on anything and the buyers get frustrated and the deal falls apart. Managing the expectations of those folks on both sides is very important to have experienced agents doing this.
Guys, really, this is a difficult market and having your friend or your buddy or your relative selling or listing your house just isn’t a good idea in these days. We didn’t have any deals fall apart last month. We’re seeing it. We’re hearing frustration from a lot of agents but we’re not experiencing that. That’s because we do this everyday. We’re selling a lot of houses and we’re making sure this kind of thing isn’t happening to us.
Give us a call if you need anything. We’re here to help get you through your transaction if you decide to buy and sell. If you have questions about the market we’re here as well.