The real estate market in Denver is reaching a tremendous level of growth. It consistently sees buyer demand outpace seller supply. This is termed a “sellers’ market” and often can lead to sellers receiving multiple offers on their homes when listed for sale. If you find yourself on the buyer side of a multiple-offer situation, here are some tips from Rhoads Real Estate for how you can ensure you WIN your dream home.
*Talk to your real estate professional about whether these options are a good fit for you and your offer. Every home, every buyer, and every sale is unique.
Go Beyond Loan Approval
You’ve gone through your pre-approval process. Great work! Now, go back to your lender, and ask this question: Do you offer desktop underwriting or express approval?Many lenders offer products that will get you virtually all the way through the underwriting process before you begin your search. This is a HUGE advantage in a sellers’ market because it will allow you to close quicker, which can be appealing to sellers—and that is advantageous to buyers like you. (Learn more about Express Approval,or Desktop Underwriting(DU).)
Offer Above Asking Price!
This is the most direct, simple way to ensure your offer is chosen. Quite simply, offer to pay the most for a home! Sellers want to be sure they are maximizing their return when selling, and the best way is to sell for the highest possible price. If you LOVE the home, you need to be prepared to offer well above asking price to ensure that you—and not those five other buyers—are calling it “Home, Sweet Home” for the next 10 years.
Waive Inspection Rights
You love the home, right? Are you willing to take on some minor maintenance issues so you can make it your own? If so, one way to make your offer stronger is to waive your inspection rights. Inspections are often the most contentious part of the buying process. Negotiating items to fix or cash concessions can be tedious for sellers and buyers both.
If you go this route, you will still:
- Have an inspection done to determine the home is safe to move into as well as identify items you need to address after close.
- Retain your rights to terminate the contract if you discover major issues.
*Talk to your broker about this, and see if it makes sense for you.
Offer to Bring Cash Over Appraised Value
In multiple-offer situations, offering $15,000 over asking is a STRONG move. However, if the home doesn’t appraise at that value, then what? A powerful way to make your offer incredibly enticing to a seller is offering to bring cash above the appraised value if it is less than the sales price.
Your dream home is listed for $375,000. You offer $390,000 and agree to bring $5,000 above appraised value IF it appraises lower than $390,000. The home appraises at $380,000. You will now pay $385,000, agreeing to bring that $5,000 cash to the closing table to achieve a successful close!
Be Flexible With Closing
Prior to writing your offer, find out as much as you can about the seller’s situation, and be flexible, if possible, with the closing date to better accommodate their needs. This can be the difference between walking into your new home or getting back into the car with your realtor and a hearty dose of disappointment.
Write a Letter
Occasionally, the seller wants to ensure the home they have loved will be well taken care of. Tell the seller why you fell in love with the home. Highlight the features that make it home for you and how impressed you are with what they have done to it. A personal touch is always a good idea, and in this day and age, writing out a letter can be a novel experience for writer and recipient.
These are some of the many ways you can make your offer really stand out in a multiple-offer situation. Perhaps some combination of these will work for you or maybe ALL of them would! Either way, please be sure to consult a real estate professional and have him or her explain these options in greater detail before making any decision about your home purchase! Rhoads Real Estate will be happy to help put the keys to your new home in your hands.