Competing for Homes in a Seller’s Market
As inventory in the Denver Metro area continues to tighten, sellers frequently receive multiple offers and buyers miss out on opportunities. In order to scoop up the home of your dreams, it is vital to do everything in your power to gain a competitive edge over other house hunters.
- When you find the home you want to buy, have your agent write your offer immediately. Minutes truly do count. Be prepared with your prequalification letter from your lender and your earnest money funds.
- Write a strong offer. Money talks. Your agent will reach out to the listing broker to communicate your interest and find out if there are any other offers. If any exist, and you sincerely want the home, put your best offer forward. Escalation clauses are becoming more common, and will keep you in the running. This contract language commits a bidder to match and exceed any verifiable, bona fide competing offers by set increments up to a specified maximum amount.
- Write a letter to the seller. This simple gesture is helping homebuyers stand out from the crowd, especially when they are financing a home or don’t have a large down payment. Cash buyers are much more appealing to sellers than buyers using financing; the risk of nonperformance is greatly reduced, but sometimes buyers can set themselves apart by emotionally connecting with the seller and his or her property. Tell the sellers why their house is the one you want to make your home. Get personal and be specific. Think of it as writing a cover letter for your ideal job; this is your opportunity to make a positive, lasting impression and get a response.
- Be flexible with deadlines and closing date. Show that you are proactive and willing to complete the inspections and appraisal in a timely manner, but also understand that the sellers may need to find a replacement home. Giving the homeowners sufficient time to move can make the difference between an accepted contract and facing the task of starting over.
- Minimize contingencies wherever possible. If you have a home-to-sell contingency, sellers will naturally gravitate towards the lower risk, contingency-free offers. Moving twice is a hassle, but selling your home before you buy will give you a strong advantage.
- Work with an experienced Realtor. Working with a Realtor that is savvy in your market, skilled at negotiating, and stays on top of the deal will be instrumental to finding and closing on the place you want to call home.
Getting an accepted bid can be challenging these days; but that is only the beginning. Successfully arriving at the closing table requires the expertise and orchestration of a number of professionals. Your buyer’s agent is the coordinator of them all. When you choose The Steller Group to represent you in your home purchase or sale, our skilled team and extensive professional network will be behind you every step of the way. When you start thinking about a move, please give us a call at 720-593-9355. We appreciate every opportunity to earn your business!