Hot Housing Market? Make YOUR offer Stand Out

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With inventory at an all-time low, Denver buyers are facing heavy competition. Here are some tips from an experienced realtor on how to make your offer stand out!

1)  Be as flexible as you can on closing time frames for closing. Call the listing agent to see if there are particular circumstances for the Seller that you can address by being flexible. This can be especially appealing to sellers who need to sell their home before they buy a new one, and are concerned about where they are going to live while they house-hunt.

2)  I have seen Buyers write personal letters that accompany their offer, which help sway a Seller towards that Buyer. If you can, do some research about the Seller and find out how to appeal to them.  The owner is listed in the public records as homeowner. Then crosscheck them on FB or LinkedIn.

An interesting  development nowadays is that large investor clients are buying up homes for cash. Some Sellers may want to sell to a family instead of an investor, so if all other things are equal a personal letter can sometimes help them choose you.

3)   Contingent offers don’t make it in this highly charged market.  Sellers will choose an offer that is not contingent on selling  your home.  Work out purchasing a home without needing a contingency.

4)   Don’t expect sellers to help with closing costs. In the “good old days” that was a regular practice. Not in this market, though.

5)  Many properties are receiving offers over the listed selling price.  If you make an offer for more than list price, do your due diligence and make sure that other homes have sold at the price level you are proposing. Be prepared if you have to offer more than list price. If a home does not appraise for the offered price, either the Seller has to lower the price or the Buyer has to come up with more money.

6)  Be prepared for disappointment, as many properties are experiencing multiple offers. Ask your realtor to take a proactive approach and contact the homeowners in the particular neighborhood that you wish to live and see if they can find a home BEFORE it is listed.

Questions? Please get in touch–we’d love to chat with you about your housing needs.

 

What is a Lease Option, and is it Right for You?

What is a lease option?//www.nancyrealestateonline.com

What is a Lease Option, and is it right for you?

A lease option, also known as Lease with the Option to Purchase, is a type of contract between an owner and a tenant, in which the renter has the option of purchasing the property after a certain amount of time.

The Tenant and Landlord sign a lease for the home at a price they agree on, and simultaneously prepare the lease option. In Colorado, an attorney must draw up the lease option addendum, and Colorado-approved real estate forms must be used for the purchase.

Is this a beneficial way to buy or sell property? It certainly can be, as shown below.

Top Five Reasons to Think About Lease Options:

From the Buyer/Tenant’s Perspective:

  1. This may be an alternative to qualifying for a conventional mortgage – you can get into a house now, and not wait for 2-3 years or longer.
  2. A Percentage of your rental payment usually goes towards purchase – you don’t get that with a regular lease.
  3. You will know the house before you buy it – no surprises!
  4. You will need to offer a down payment that is not refundable – be aware that if you can’t buy, you forfeit your down payment.
  5. Seller/Landlord is responsible for all maintenance issues until you buy the home – you usually pay for the utilities.

From the Seller/Landlord’s Perspective:

Offering a lease option to a Buyer/Tenant may be a good move for you – you really can’t lose!

  1. If a Buyer/Tenant pays upfront earnest money and does not exercise the option to buy the house – you get to keep all the down payment.
  2. You keep all the tax benefits and write-offs until the home is sold.
  3. You agree on a selling price when you sign the lease option. If the market goes down, you win, but if the market goes up, you may lose that gain. You do receive rental money each month.  That amount should cover your mortgage costs.
  4. You have a Tenant/Buyer in your home that will take really good care of your home.

A lease option alternative will be more complex than a traditional purchase or property rental, but this may your best real estate alternative.  Let me know how I can help!

Nancy Page Cooper

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