In this crazy real estate market we are experiencing currently in Colorado, being a buyer can be a rather overwhelming situation in this seller‘s market. Often times these days buyers are finding themselves writing contract after contract and being out bid at every turn. On the flip side, sellers are finding themselves sifting through the good, the bad, and the ugly when their home receives multiple offers; some homes are receiving upwards of 10 plus offers within a week on the market. Here are some tips and insider information on what the seller‘s agent is likely advising their client to look for when considering multiple offers on their home, and how to get your offer to the top of the seller‘s list.
They review comparable sales information with their agent. The agent will have experience in the market and be able to offer advice but ultimately the seller is deciding on an offer price that is comfortable for them and reflects just how much you want the house.
Don’t assume that multiple bids mean the offers will go sky high- sometimes all the offers can be under the asking price. The comparable sales info and the amount of activity for the listing should give you some sense of how high the offers might go.
Type of Financing
Cash is gold! With a cash offer there is no worry about mortgage contingency (a home that you have to sell before your loan can be finalized on the new house). If there is a mortgage involved, a Conventional loan will be more desirable than an FHA or VA loan for your new home. Personally I have had deals fall apart because of FHA or VA financing requirements.
The typical contingencies in a home purchase contract are: financing, home inspection, and satisfactory review of the condominium documents. You should have a letter of pre-approval from your lender ready to go and submit it with the offer right up front. Be aware that some buyers may very well drop any and all of their contingencies such as waiving their right to inspection or loan related deadlines within the contract making their earnest money at risk right off the bat. This can show the seriousness of an offer to the seller.
Have your agent chat with the seller‘s agent before you write your contract about dates that you are requesting on each deadline. If necessary, tighten up your timeline to meet the seller‘s time frame and needs. For example; instead of 7 days to do the home inspection, bring it down to 3 days. This is where having picked your Home Inspector before you find your home will help you. If you have a mortgage pre-approval your closing date can be as soon as 45 days if needed. If the seller is looking to move, for one reason or another, at a date a little farther out than the norm, create for your contract deadlines and closing dates may better fit the sellers needs. For example; if you are writing an offer on the house on March 18th and they really wanted to stay until their son finishes the school year, write a closing date of May 25th which is over 2 months out.
Expectations for deposit amounts vary in different states and regions. Talk to your agent about the norms in your area and consider increasing the deposit (earnest money). This doesn’t cost you anything since the deposit will go towards your down payment. From the seller’s perspective, however, it shows evidence of the seriousness of your offer.
Letter to Owner
And one no-cost but often very effective tool to sellers: Write a letter about who you are, why you love the house, and how you’ll take good care of it. Mention any special things that stood out to you. If you can tell the sellers took good care of the house, let them know that you noticed it. If you like their decorating; mention that. Sellers will often remember and remark about the letter for weeks after receiving it. Letters have become a very popular tool lately, to take things a step further talk to your agent about submitting a personalized video about the house to the seller with your offer.
Tatyana Sturm and The Storck Team have specialized in relocation real estate for the last 10 years in Southeast Aurora, Centennial, and Parker. We live, work, and raise our families here and our community is our true passion. Whether you are buying your first home, upgrading to make more room, or downsizing now that the kids have grown up The Storck Team would love to give you a tour of Aurora’s top homes for sale in your price range. Call or text (720) 350-5909 to schedule your private showing.