Black Friday bargains don't typically include discounts on real estate in Colorado or anywhere else. But one company is making just such an offer from Thanksgiving afternoon through Cyber Monday in Denver, where the head of the firm predicts costs will remain high for the foreseeable future.
"If you look at the speed with which people are moving into the Denver metro area, we need to have 15,000 to 18,000 new homes constructed every year to sustain this type of growth," says Joshua Hunt, founder and CEO of TRELORA, a real estate brokerage. "But we've only seen 10,000 built in the last twelve months. If we continue to lag at that pace, we're going to see higher demand for properties, which will obviously drive more multiple offers — and that in turn will cause prices to rise faster than usual."
Hunt, who explained why some people in Denver should rent instead of buy for an August post, considers his firm's Black Friday pact to be an antidote to such sticker shock. Rather than taking a traditional 3 percent commission on house sales, TRELORA charges a flat $2,500 fee. But for those who sign up between 4 p.m. on Thanksgiving, November 23, and midnight on Cyber Monday, November 27, the brokerage will knock $500 off the total price of any purchase made over the next year. Participants are asked to pay $500 up front, then an additional $1,500 at closing — and the price is good on up to two transactions.
Lucky thing sales aren't required to close over Thanksgiving weekend, since, as Hunt acknowledges, "inventory is at an all-time low for this time of year. There are around 5,500 homes available in the ten-county metro area, so it's a tight market — and there are a lot of buyers trying to buy homes."
According to Hunt, one factor in the current real estate rush is the prospect of Amazon choosing to build its second headquarters in or near the Mile High City. There are no shortage of potential negatives should Amazon pick Denver, including upward pressure on already sky-high rent prices, as foreseen in a study we shared last month. But Hunt sees positives, too.
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"The whole Amazon hubbub has brought so much excitement," he allows. "And what's even more interesting is that we've got a lot of other companies on the coasts looking at moving their corporate headquarters to Colorado at the same time."
In his view, "the bid that went out to Amazon showed one of the cool things that makes Denver and Colorado special. We didn't really let each city in the area compete. All the city mayors and councils and so on came together to present one strong offer to Amazon — and the process put a lot of things into play that we're now able to share when it comes to bringing other companies here. It not only created attention, but it forced all our leaders to come together and figure out what packages and what incentives we can put together to present Denver and Colorado in a way that's beneficial — and we'll be able to use it as a tool to attract other businesses."
More people moving to Colorado will likely trigger additional multiple-bid scenarios of the sort previously noted by Hunt. However, he argues that buyers who take TRELORA's Black Friday deal will save more than $12,000 on a $500,000 purchase with a standard commission — and that cash can be used to pump up the offer.
If folks can find a home that hasn't already been snapped up, that is. For more details about the Black Friday proposal, visit TRELORA.com.