Price Reductions + Seller Credits

The most recent Denver market stats report shows that average days on market are up to 20 and the list to sales price ratio has dropped below 100 for the first time since July 2020 and currently sits at 99.41%…these numbers are a little 🤓 but basically mean it’s a great time to buy a home compared to the 3 DOM and 110%+ we frequently saw this spring and over the past couple years.

If a house has been on the market for a bit and is not competitive, buyers have a great opportunity to try and get a ✨𝗗𝗘𝗔𝗟 The first assumption people make is that they should negotiate down the purchase price. However there are several options to consider depending on what is most important to the specific buyer:

𝗣𝗿𝗶𝗰𝗲 𝗥𝗲𝗱𝘂𝗰𝘁𝗶𝗼𝗻: If you buy a house for a lower price, this is great in the long term because you’ll have more equity in the home. However, every 10k in purchase price only makes about a $50 difference in your monthly payment

𝗦𝗲𝗹𝗹𝗲𝗿 𝗖𝗼𝗻𝗰𝗲𝘀𝘀𝗶𝗼𝗻 𝗮𝗽𝗽𝗹𝗶𝗲𝗱 𝘁𝗼𝘄𝗮𝗿𝗱𝘀 𝗰𝗹𝗼𝘀𝗶𝗻𝗴 𝗰𝗼𝘀𝘁𝘀: The seller can credit the buyer up to the amount of closing costs and pre-paid items, which is usually about 1-1.5% of the purchase price. The buyer in turn can keep this amount of cash in their pocket instead of using it at closing…and could save it or use it for immediate updates, new furniture, etc.

𝗦𝗲𝗹𝗹𝗲𝗿 𝗖𝗿𝗲𝗱𝗶𝘁 𝘁𝗼 𝗹𝗼𝘄𝗲𝗿 𝘁𝗵𝗲 𝗶𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗿𝗮𝘁𝗲: A buyer has the option to lower their interest rate by purchasing points. Points are pre-paid interest on the loan, and by having the seller give a credit to purchase them, a buyer can lower their interest rate over the life of the loan, and in turn lower their monthly payment.

Of course price is just one aspect of an offer - we’re also seeing buyers having the power to negotiate some good inspection items + having their appraisals come in high (𝗜𝗻𝘀𝘁𝗮𝗻𝘁 𝗘𝗾𝘂𝗶𝘁𝘆!), which are also fantastic!