According to a recent Denver Post article, home buyers are becoming less shy about asking for concessions when making an offer on a house. Unlike repair requests buyers sometimes make after an
Less Competition For Denver Homes Means More Concessions For Buyers
According to a recent Denver Post article, home buyers are becoming less shy about asking for concessions when making an offer on a house. Unlike repair requests buyers sometimes make after an inspection, concessions represent the transaction costs that sellers cover for buyers - things like title fees, appraisal costs, and property tax obligations.
Counts from the Denver Metro Association of Realtors indicate that in January 2018, there were 1,019 closings that involved sellers paying a concession in metro Denver, or just under a third of the total. By January 2019, that share had risen to nearly four in 10 closings or 1,177 closings. Last month, 46.2% of home closings or 1,519 involved a concession.
Of course, this scenario won’t play out the same if there are multiple offers on the table for a house, but the market is less competitive than it used to be. Back in the summer of 2018, the real estate brokerage firm Redfin estimated that half of its listings in metro Denver received multiple offers. By December 2019, only 8.5% were getting more than one offer.
How much are buyers asking for?
According to DMAR, the dollar amount requested in concessions hasn’t changed that much in recent years and it averaged $3,805 in January. Buyers in the $200,000 to $299,000 price range asked for $3,529 on average, while the $1 million-plus buyers asked for $4,918 on average in concessions.
That shows that concessions are much more important in lower-priced properties that appeal to first-time buyers.
If you’re considering becoming a homeowner in Denver, now could be a great time as competition is decreasing and the likelihood of receiving concessions from sellers in on the rise. Contact Metrowest today – we’d be happy to show you around!
I have been in the mortgage industry for over 30+ years and have managed all aspects of the process from being an account executive who managed large origination clients to being a Senior Level Manage....
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