Ohhh how things turn around. Even three years ago, buyers were frolicking about enjoying the choices of homes in the market. The policy makers were still pointing fingers and coming up with their genius ideas on how to improve the economy (they do that regardless of the issue). The truth is it’s March 2014 and the Denver metro area has less than three months inventory, a very lopsided market – advantage Seller. That means sellers are in control and if they have a home in good shape, they will at least get a full offer(if priced correctly). On a newly remodeled home, there’s no limit. So if you’re a potential seller, call me to get the process going. If you’re a buyer, here are some tips that may give you the edge so the seller will have no choice but take your offer.
I will put the disclaimer out there that I am not an attorney in person or on internet land. This is not legal advise. Contracts are a serious thing so don’t go out there putting contracts together without professional representation (call me☺). So here we go.
1. Up the Earnest Money. Use the same amount of your down payment if able.
2. Do not use alternative earnest money, provide it as a cashier’s check up front.
3. If you have a good relationship with the lender, make sure they have write a great letter of pre-approval. If possible, saying that your loan has gone through underwriting and all that’s missing is the appraisal. This must be true of course.
4. Do the inspection up front, before submitting the offer so you can exclude it as a condition. Lender approval still protects you.
5. If buying cash, do #4 and waive the appraisal.
6. It doesn’t hurt to provide a personalized letter indicating your (enthusiastic) interest in the home.
7. If all fails, indicate it’s ok to go as a backup. Offers do fall through.
This is it for now and of course there is more discussion on each of these tips so don’t feel bashful and let me know if you have any questions.