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Fort Collins Homes for Sale 3-6-14

Sneak Peak at our Old Town Market Update for this Saturday’s Coloradoan.

Old Town Market update

The Old Town market is changing as a result of rapidly escalating prices, due to the continued buyer demand and limited inventory, which disrupts the normal appraisal process.

The past couple of months have proved to be a challenge in getting some homes to appraise to current values because of the continuing price increases in Old Town. This is primarily due to the lack of inventory in this area. Many homes are getting multiple offers within a few days of going on the market, therefore, buyers are bidding up the price, resulting in sellers accepting offers above listing price. If the buyer is getting a loan, the appraiser that is hired by the lender will have to use comparable sold listings of properties that have sold in the last 6 months to justify the home’s value. Since market prices have increased in relation to where they were 6 months ago, and there are so few new sales to use as comparable properties, it’s hard to find appropriate sales to support these increases. Appraisers might have to consider using homes that are under contract but not yet closed, and may also need to make adjustments to these changing market conditions. Lately, we are seeing homes that are not appraising at the contract price, which results with the buyer requesting that the seller adjust the price accordingly. With so much demand for their home, sellers are reluctant to do this and will just as well accept another offer and take their chances that the next offer will not have any appraisal issues, or even possibly receive an all-cash offer where there is no financing and/or an appraisal contingency. It’s good news for the sellers that many of them have these options, but not so great news for the buyers who end up losing the home to someone else through no fault of their own. A Realtor can help in this process by providing the appraiser with a current market analysis, to show other properties that are under contract and ready to close for the appraiser to consider when determining value. If we saw an increase in inventory to meet this buyer demand, it would certainly be a more stable market in Old Town, allowing buyers to find a home without having to inflate the price in order to get a home.


Fort Collins Homes for Sale, Old Town Homes for Sale, Fort Collins Real Estate, Old Town Real Estate, Colorado Homes for Sale, Colorado Real Estate, Downtown Real Estate Partners, Emily Heinz

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