How to Prepare for a Competitive Homebuying Season This Spring

The last couple of years were out of the ordinary for various reasons, the pandemic being the most significant one. Among other things, that peculiarity has had a considerable impact on the real estate market. We must prepare for a competitive homebuying season as things gradually return to normal. There are various preliminary procedures to take to outbid the competition and secure the property you want. Since spring is the busiest season for the Colorado real estate market, this information arrived just in time. So stay with us for the greatest advice on beating the competition and getting your dream home quickly.

Colorado market predictions for 2022

Buying a home, especially if you’re a first-time homebuyer in Colorado, can be intimidating and scary. It’s a considerable investment, so it’s only natural you feel that way. Even if you have extensive real estate experience and plan to expand your real estate portfolio with a property in the State of Colorado, it’s always good to be prepared and know what to expect.

In 2020 and 2021, we’ve seen a low inventory followed by an increase in demand, which resulted in an increase in Colorado real estate prices. The surge in demand started in 2020 when many people chose to work from home. Many Colorado citizens decided to move into larger houses to accommodate their new lifestyle when a significant portion of the population was compelled to stay indoors.

However, when it comes to 2022, it’s predicted for the economy to recover and return to pre-pandemic levels fully. Economic activity was restored to pre-pandemic levels in September 2021 and is expected to continue to thrive and expand. In fact, in 2022, all industries are predicted to grow employment (except the leisure and hospitality industries).

Although the demand for homes in Colorado is greater than the supply, there are still various windows of opportunity to enter the market. According to market projections, Colorado has much to offer to homeowners and real estate investors.

Tips to help you prepare for a competitive homebuying season this spring

When the spring comes, everything comes back to life and starts blossoming. The same happens with the real estate market – after a slow and sleepy winter, it seems as though buyers everywhere are making their way to the market. Even if you plan to have a long-distance move and aren’t sure when the right time is, spring is perfect for this. Spring is definitely THE season when it comes to fresh starts.

If you are looking to purchase a Colorado home soon, you better get ready. Having limited inventory and high demand in mind, you need to be ahead of your competition. Here are our simple tips to help you prepare for a competitive homebuying season.

Sort out your finances

It’s essential to get your finances in order before looking for a Colorado home. However, this doesn’t just mean setting a realistic budget. Sorting out your finances implies so much more, and unless you want to pay for the house in cash, you’ll need to apply for a mortgage.

So from the financial aspect, it’s critical to:

• Check your credit report for any errors that could harm your credit score.
• To maintain your debt-to-income ratio (DTI) low, clear any past-due payments and reduce any additional commitments you have.
• Using a mortgage calculator, calculate your DTI and see if any adjustments are required.

Remember, it’s your goal to appeal to as many lenders as possible and get the best possible offer. Thus, determine the amount of money you’ll need and when you’ll need it. Learn about your “cash to close,” which covers both the down payment and closing costs.

Determine what type of home you want

Once you know how much you can spend you can decide what type of home you want. However, you won’t have time for relaxation in today’s marketplace. The average listing is currently selling 8% faster than it was in the past. As a result, hesitation may easily endanger your ability to close on a deal.

On the other hand, if you’re a first-time buyer, perhaps you’re unfamiliar with the different styles of homes. So it’s imperative to research and determine what kind of home you want and the types of amenities you prefer. Think about layout, the number of rooms and bathrooms, available storage space, and similar and make a “needs and wants” list. 

Keep in mind that it’s improbable that you’ll find a home in Colorado (or anywhere) that checks everything on your list. Therefore, prioritize and know what you’re willing to give up. This will save you some valuable time, and timing is crucial when buying a home during spring.

Hire an experienced Colorado real estate agent

Even if you have extensive experience with real estate, trust us, the way real estate tends to get during spring, you’ll need an award-winning team of real estate advisors on your side. This can make a tremendous difference in your home buying adventure.

A great real estate agent will have market insights and valuable knowledge they’ll use to guide you every step of the way. First of all, they’ll understand what you are looking for and focus on finding just the suitable properties for you to see. And lastly, they’ll use their extensive experience to negotiate the best price on your behalf.

In a competitive market, making an offer on a home may necessitate more than just a willingness to pay the asking price. If a seller has to select between several purchasers, they’ll most likely go with the one who offers the finest overall package.

A good real estate agent knows that. Thus, they’ll submit your offer and other information, such as your ability to obtain a loan, the amount of money you can put down, and anything else that can set you apart from other buyers with whom you’re in a bidding war.

Did we help you prepare for a competitive homebuying season?

We hope our article helps you prepare for a competitive homebuying season this spring. However, the most crucial step is finding and hiring a great real estate agent. Only with their help will you be able to stay ahead of the competition and ensure you get a good offer for your dream home in Colorado. So wait no more, get in touch with a great Colorado real estate agent and start your home buying adventure this spring!

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Spring is the busiest time for house hunting, but if you prepare for a competitive homebuying season, you’ll be ahead of the competition.

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