Don’t Lose a Denver Real Estate Bidding War
It’s possible to win a Denver real estate bidding war without paying a cent more than you budgeted for.
We’ve yet to see a Denver real estate bidding war on national television but they do happen. They remind you of those television shows that battle over storage sheds and how devastated the person is who over-payed and got nothing in return. It’s an emotional game that can make you lose control of a smart decision. It’s great to be competitive but there’s much smarter ways of doing it than spending all of your money.
1. Know Your Bottom Line
As far as emotional purchases go, buying a home ranks right up there with choosing a wedding ring — only there is much more to lose financially. Hopefully you know how much house you can afford ahead of time, you could get buyer’s remorse for spending too much. And an angry spouse. Let your lender walk you through this step don’t try it alone in a real estate bidding war!
Submit your best and final offer early with a time frame. If $1,000 keeps you from pulling into the driveway of your dream home with a moving truck, then you might regret this more than you can imagine. If on the flip side you get outbid because someone offered more than you were comfortable with spending, then you didn’t lose anything and made a smart financial decision. You’ll be shocked on how a little could mean a lot. Paying more in tiny increments shows that you know your numbers and sharpened your pencil.
2. Don’t be a stranger with the listing agent
Don’t be a stranger. When walking around the neighborhood you want to live in and you see an open house of a property you love, don’t wait to call your agent before taking a look. Take action now! Of course let your agent know afterward but don’t hesitate a single second to come into the house and come up with an offer you’re willing to make. Speed is the name of the game. You and your agent are a team but it doesn’t mean you can’t be more involved in the process. You are the one deciding where to spend your hard earned dollars after all.
3. Negotiate a fast close
This is not something that just works with professional home buyers. The best thing you can do is to try and figure out the seller’s true motivation. If they are bored and just wanted to see what they can get, chances are they may not sell to you for high price! Move on. If they are selling because they are moving out of state for a new job within 75 days, think about how happy they’ll be to hear you’ll close in 45 days or less. It’s not always about price.
10 business days (two weeks total time) should be plenty to let you schedule a whole house inspection and appraisal. You got to act quick though. This is one way to tighten up the buying process.
Being pre-approved for a loan is practically a requirement if you want the seller to consider your bid as well.
4. As is, Where is
The fewer contingencies you place with your offer, the more attractive you look to sellers. Consider offering to buy the house as-is. You can opt out of conducting inspections. But since this is an extremely risky proposition in a real estate bidding war. Most professional home buyers have enough experience to do this because they have contractors and know what repairs will costs from day one. You can also decrease the inspection period to two days maximum. If you have a firm grasp of all the possible defects a property may possess and are willing to do repairs over time than you’ll be in a good spot.
5. “Cash is King” for a reason
In a real estate bidding war, the price people are willing to pay doesn’t always match the appraisal, which could come in lower. If you truly have extra cash to put down as a deposit, go for it. If this is a house you truly want maybe offering more is the answer. Letting the seller know that your money talks is the answer. This is another way to let the seller know you have funding in place and ready to go and there’s no time to waste. Offer the difference between the appraisal and the offer to make up for it and get that deal closed!
If this blog was helpful and you have a house you’d like to sell or just want a free no-obligation cash offer, call Adam Buys Houses direct at 303-558-5843 or visit click here to get started. Selling a house with a Realtor may not be the best option for you. Don’t be afraid to speak to a local home buyer. Avoid a real estate bidding war with multiple showings not knowing who’s truly going to close.
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