Should you offer full price for your Fort Collins dream home?

When I meet with a new client and discuss the home-buying process, I generally give the client an overview of the real estate market.  If you haven’t been following the real estate market in Fort Collins, CO for the past year, let me sum it up for you: it’s a seller’s market.  The Months Supply of Inventory (M SI) is about 3.7 and 6.0 is considered a balanced market.  Right now the market will absorb the current inventory in 3.7 months, meaning there are more buyers in Fort Collins, CO then there are homes for sale.

The May Housing Report published by the Fort Collins Board of Realtors® (FCBR) shows that homes sold within 99.0% of the list price in April 2013, and for the 2013 calendar year homes have sold within 98.6% of list price.  So should you offer full price for your dream home?

It amazes me that there are buyers in today’s real estate market who still operate under the “I’ll offer 10% less than list price and see if they take it” philosophy.  Sure, you can offer less than list price, but keep in mind that sellers are receiving multiple offers, so do you really want to lose out on your dream home?

Obviously there are checks and balances to make sure you are not paying too much for a home.  When a professional real estate agent lists a home he or she should be doing a Comparative Market Analysis (CMA) to evaluate recent sales and help the seller to determine a realistic list price.  Your buyer’s agent should also be preparing a CMA for you so that you can see recent comparable sales before you even make your offer.  Finally, if you are obtaining traditional financing, your lender will hire an appraiser to determine the value of the home, ensuring that the lender does not lend too much against the property.

Have you ever heard the phrase, “The numbers don’t lie?”  Well the percentage of sale price to list price for homes in Fort Collins speaks for itself.  If you would like more information about buying or selling a home in Fort Collins, reach out to me and we’ll chat more about it.

Percentage of Sale Price to List Price April 2013

Percentage of Sale Price to List Price April 2013