“Denver leads the nation in foreclosures”. That’s what several newspaper headlines said recently.
Why are both statements absolutely true? Remember what is important in real estate? It’s an old adage but it has never been truer. The three most important things in real estate are “location, location and location”.
Most Denver area foreclosures are occurring in Adams and Weld counties. Those are suburbs on Denver’s north side. Also, foreclosures in Denver proper have mostly been limited to the north and west sides of town. Also, the northern section of Aurora has had more foreclosures.
So, does that mean all the better neighborhoods are on the east and south sides of town. Not exactly. But, that is a fair generalization with many notable exceptions. Broomfield, Arvada, Lakewood, Highlands and other areas have been less affected by foreclosures. But, it is fair to say that the south side of town both in the city and suburbs has low foreclosure rates. Coincidentally or not, those are the more expensive section of the city.
I mostly practice south of I-70. My colleagues on my team work north of there. I rarely see foreclosures south of I-70 and when I do they hardly ever are great bargains especially given their generally rough condition. Luxury homes above $500,000 are generally in better areas that have held value during this downturn.
Still, bargains can be had. This is generally a “Buyers’ Market” but exceptions do exist. Don’t try to buy a new home in Cherry Hills and pay less than $3 million. It just won’t happen. But, there are builders and motivated sellers all over town making deals. The trick is to determine motivation and capitalize on it.
Even though the average selling price in better neighborhoods is still 97% of asking price, many homes will sell at substantial discounts. I have been helping my clients get the best deals for 28 years. It’s just a matter of knowing the various markets around town and how to play them. I know that can be done because I do it all the time!