Boom, Bust or Even Keel?

Looking in any paper in the Colorado area over the past few weeks, one is likely to see numerous articles related to the Colorado real estate market, including ones on foreclosures, real estate auctions and builder incentives inflating the "sold" prices of new homes.

Without a doubt, the market has changed. There are certainly some bargain buys here. There are homes which can be purchased thousands and even hundreds of thousands below the price at which the home was first listed, or even below the price at which the home previously sold.

Don't assume, however, that this price cut is a blanket, across the board situation. There are still areas and neighborhoods "holding their own." In some areas, homes can be sold 10-15% higher than the sold price 1-2 years ago. Location, location, location! Not a new concept.

The best area to buy right now may be one that is simply a neighborhood that appears to be an area in which you wish to live. Is the location suitable to you? Are the amenities you desire close by? Does the home fit you or your family? Is the home a "deal" or one that will likely be worth more in a few years than it is worth today?

If you are planning to live in the home, you could get in now at a price apt to be quite lower than the price will be a few years from now. And, living in it for at least two years, you could make a profit on which you will not have to pay a portion of to Uncle Sam.

If you are an investor, opportunities abound. While foreclosures are in abundance, I would still stipulate that location remains a very important factor. Maybe look for the needle in a haystack kind of property.....where foreclosures are rare. I have seen some which would be incredible for investors. I saw one property in an extremely desirable, high end area of the Denver metro area, with a couple of acres, listed initialy for more than $200,000 over the sold price! I had even contemplated putting in an offer, but was reluctant to "offend" the seller. Apparently, I would not have; and I will never allow that kind of thinking to stop me in the future. Perhaps my "insult" would have been just what the seller was looking for. In fact, the seller accepted a more "insulting" offer than my planned offer.

What do you have to lose for not trying to get the property you want today? Perhaps a very healthy bargain!