We’ve all heard that Denver’s real estate market is hot. But how hot is hot?
“I was at a house where there were 59 showings on the first day,” says one RE/MAX Cherry Creek broker. “They got 29 offers. Can you imagine 29 offers?”
“We recently put a house on the market that we ended up selling for $30,000 over the asking price,” says another. “We closed in two and a half weeks.”
In this brisk market, it’s far from business as usual when it comes to making a bid that’s likely to be accepted. Buyers need every negotiating weapon possible in their arsenal. To that end, here are some tips:
Secure a top-notch loan letter: Choose a lender that will write a personal letter, rather than boilerplate, attesting to your superior qualifications for obtaining a loan. The more convincing the letter, the more likely sellers will feel comfortable committing to your bid.
Make a cash offer: Obviously, not everyone can do this – but those who can have a huge advantage.
Offer significant earnest money: Beef up the good-faith money you offer up front. A large amount is eye-catching and reassuring to sellers.
Keep contingencies to a minimum: The fewer possibilities of the deal falling through, the more comfortable sellers will be with your offer. Any contingencies such as property surveys, selling your current home first, etc., can be a deal-breaker in this market.
Be flexible regarding your move-in date: If the seller needs more time to leave the house, by all means, let them. By contrast, if they need to move immediately, agree to close the deal quickly.
Write a letter: Remember that sellers are motivated by emotion as well as money. Consider writing the sellers a letter telling them about your family and why you love their home.
RE/MAX of Cherry Creek
Denver real estate