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.

 

Don’t Get Scorched in a Hot Real Estate Market–Find a Good Realtor!

With multiple on-line search engines at your fingertips, why work with a realtor when buying a home or investment property? Why not look at properties on your own and try to cut a deal with the selling broker? In fact, what does a buying broker do for you that you can’t do for yourself?

Excellent questions! If you are thinking this way, I applaud your acumen and independent spirit. I do believe that an experienced, conscientious realtor can indeed improve your home-buying experience, especially if you are a first time home-buyer or investor. Here’s how: 

 With multiple on line search engines at your fingertips, why work with a realtor when buying a home?

In a hot market, search engines are often several days behind. This can lead to frequent disappointments as you jump on a listing that just appeared, only to find out an offer was made–and accepted–two days ago.

A realtor can keep you up-to-the-minute so you don’t miss out when properties are going fast.

A dedicated realtor will do more than just drive you around to listings. They will actively canvas a neighborhood, looking for potential sellers. They can also network with selling realtors who might be able to find you a home in your desired area and price range, before it even goes on the market.

A seasoned realtor can take some of the competitive emotion out of fighting multiple offers. She can caution you about homes that don’t appraise for an unrealistic asking price. Do you really want to bring thousands of extra dollars to the closing table to make up the difference between the appraised price, and an inflated asking price?

Why not look at properties on your own and try to cut a deal with the selling broker?

If you are an experienced buyer, this can be a tempting idea. As a realtor of 11+ years who has ‘seen it all’, here are the caveats:

Because you are trying to take the commission that would normally go to the buying agent, your offer will probably be less than list price. Even if the selling broker explains to the seller that this won’t mean less money for them, many sellers still don’t like the thought of selling for a lower amount. Also, the seller may not look as favorably on your offer, as it will appear less secure than one represented buy a reputable buyer’s agent.

However, the real reason I caution against this route, especially if you are a new or newer buyer, is that no one is looking out for you. The seller’s agent is looking out for the seller’s interests, trying to negotiate the best terms and top dollar for their client. Who is looking out for you, to make sure you’re aware that there are railroad tracks three houses away with a train that goes 23 times a day, or that there’s been a class-action suit against the home builder, or that you’re in a flood plain?

In fact, what is a buying broker going to do for you that you can’t do for yourself?

When you buy a home, it’s natural to feel an emotional attachment. You might ‘fall in love’ with a property or a neighborhood, or see a property that meets your needs in all respects but multiple offers are coming in thick and fast, and you’re unsure whether to up your offer or let this one go. Or, perhaps the inspection uncovers some grim findings, and you’re unsure whether or not to proceed or back out.

A reputable broker isn’t looking for a quick commission, but a lifelong client who trusts them and is happy to refer them. Knowledge of the neighborhood, the current market, and professional resources can help ease the way of this huge decision.

A buying realtor, who has dealt with the above scenarios numerous times, and who has no emotional attachment to the property or neighborhood, can provide you with the information you need to make the decision that is in your best interests.

So, to answer your question, why do I need a realtor? Buying a home is often the biggest investment you’ll make. Use a professional to help make sure it’s a good one!

Link Real Estate Group has been helping homebuyers and home sellers for over a decade. If you’re looking for an experienced, dedicated realtor to help you navigate the challenging Denver real estate market, please get in touch!

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