Buyers who are navigating a competitive market (like we see across Colorado whether real estate in Denver, Littleton, Thornton, Westminster or more) often times face challenges getting their offers accepted. While price is certainly a large aspect of the real estate offer, it is not the only thing to consider when trying to be as competitive as possible.
In Denver, there are more buyers than there are homes available, which is creating heated competition amongst buyers. LUX. Denver has helped hundreds of clients from Fort Collins to Colorado Springs get their offers accepted, and it hasn’t always been based on having the highest offer price. Real estate is not only a financial transaction but also a very personal one for both the buyer and seller. It is very important to build an offer that conveys to the seller how you, the buyer, are determined and sincere in the purchase of the property. Here are a few tips we have used along the way for buyers to stay afloat in a seller’s market.
1) Make a strong offer
This is the most obvious of them, but important nonetheless. Having a strong offer from the beginning will capture the seller’s attention. Researching similar properties that have closed in the past 6 months, better known as “comps,” will offer you an idea of the fair market value of the property. Furthermore, having an understanding of the neighborhood and style of the property will help you further generate an offer that is appealing to the seller.
2) The higher the down payment, the better
Strengthen your chances of your offer being accepted by offering a higher down payment. This will signal to the seller that you are not only serious about purchasing their property but that you also will have no problem qualifying for a mortgage loan.
3) Write a letter to the seller
This has been proven to be a very effective method of getting the seller’s attention if you are not in a position to compete in the bidding wars. A personal letter about yourself and what you love about the home can offer the chance for the seller to get to know you a bit more personally without having met yet. Selling a property can be very emotional and a bit of flattery goes a long way.
4) The fewer contingencies, the better
Having a slew of contingencies on your offer will likely move it to the bottom of the pile. Create a stronger offer with few contingencies. Attempt to further understand the position of the seller and build a contract that feeds those wants and needs. A firm offer with limited contingencies will send the right message to the seller that you are serious about closing on this property on time.
5) Use a great real estate agent!
In many communities, 80 percent of the business is done by 20 percent of the agents. Agents who are experienced in the local market and have nurtured relationships with other agents, as well as inspectors, contractors, mortgage brokers and appraisers, are already a step ahead of the game.
Every seller is looking for a clean smooth closing and your agent is one of the key ingredients in making that happen. We have often had offers accepted by our agents despite being below asking because the recognizes and seek to work with a respectable and responsible agent.
Competitive markets can be tricky to navigate, especially if you are not equipped to deal with the intricacies of the Colorado Real Estate market. Creating a smart strategy and a clean contact are the building blocks to getting an offer accepted.
Interested in connecting with our local agents? Contact LUX. Denver