Homes for sale under $300,000 in Colorado Springs are a hot commodity! According to the sales statistics from Pikes Peak Association of Realtors®, this price point is the most popular price range for homes in the area. Now, before you go searching homes, I do have something to tell you.
This price range is highly competitive. Meaning, everyone wants a home under $300,000.
Well, maybe not everyone. Not only is this a popular and affordable home price point for most middle class income brackets in El Paso County, but it's also a price range where many people are putting in multiple offers. These offers are in upwards of 10 - 15 at a time per home or more, and what makes it even more interesting is the amount of cash, YES CASH MONEY AMERICAN DOLLARS people are offering for these homes!
How much money do I need to buy a home in Colorado Springs in 2021?
Rob Thompson over at The Agency recently shared with me that homes are going for an average of over 2% over list price. Check out his awesome graph below! This image shows data on homes sold between $290,000 and $310,000 with average sold price, concessions, and more!
Now, that's the average. From experience, talking to other agents, and seeing contracts myself, this specific price point can be up to $60,000 over list price, especially in this popular price range.
In order for this to work and for you to land your dream home and win the bidding war, you'll need to consider appraisal - how much the home is worth. If you are taking a loan out such as FHA or a conventional loan, your lender will require to have a professional (appraiser) assess the value of the home before they lend you the money. If the home does not appraise at the contract price, you will need to bring cash to closing to cover the difference. This is where the escalation clause comes in and an "appraisal gap coverage" plays a huge roll in writing competitive offers.
So the biggest takeaway here is to set your expectations. Expect to bring a competitive offer with an escalation clause and some deep pockets for appraisal gaps. Houses are like loaves of bread and milk just before the snowstorm in Colorado Springs, so just be aware and be ready! So, Watch this video on tips to make a competitive offer when buying a home.
What questions do you have?
Search homes in this price range!