What Multiple Offers Mean

There is no doubt that by now, if you have been following the news, you’re aware that the real estate market in Denver is now a seller’s market. What that means is that the demand for homes outweighs supply. This is super good news for sellers. Let’s face it: sellers have gotten the snot beaten out of them for the last four years. Those that had to sell probably took a heavy financial loss and when it came to inspection items, they were at the mercy of buyers.

They say that in life, “what goes around comes around.” Now the sellers are getting over their asking price, having buyers engage in bidding wars, and fixing little to none of the inspection items.

It doesn’t matter if we are in a buyer’s market or a seller’s market. There is a strategy for either one.

1)    For buyers. To compete in a seller’s market, you need to be ready. That means expecting a multiple-offer scenario. Buyers need to make sure that they have all of their lending requirements in place before they even go out to look at a home. They need to have their application in with a reputable, qualified lender with their credit checked and approved. They need to have their lender’s pre-approval letter on hand. Buyers should have plenty of earnest money in the bank and ready to write a personal check for the earnest deposit when they write the contract. If buyers find a home that they like, whether it’s on their first or 23rd time out, they better write a contract right away and be prepared to sign and submit it with their earnest check and lender’s letter. If you delay and “want to sleep on it overnight,” chances are you will lose it. Finally, be prepared to make a strong offer of full price or over the asking price.

2)    For sellers. There is a tendency to think that anyone can sell a home in a seller’s market. That would be foolish. If you think that selling your own home will be easy and can save you a few bucks, I suggest that you read my column from last week entitled “So You Want to Sell Your Own Home.” In a seller’s market, your goal is to get the highest price for your home in the shortest amount of time. To do that, you need the same three principles that you used in a buyer’s market: (a.) price it right, (b.) make sure it shows great, and (c.) make sure it has great marketing. The first two I mentioned are in the seller’s control. The marketing piece is the only part of the three-step process that the realtor controls. If the seller wants to sell for the highest price in the shortest amount of time, make sure that you bring in a realtor with great marketing. Chances are, it will translate to multiple offers quickly. More importantly, it will require an agent that has extensive experience in managing a multiple-offer scenario.

I hope I have given you some information as well as strategy on how to navigate this new market. If you would like to speak with me more in depth, you can reach me at dan@coloradodreamhouse.com

Dan Polimino is a Broker/Owner with the Colorado Dream House Team, Keller Williams Realty DTC. Contact Dan at 303-522-1161, dan@coloradodreamhouse.com, codreamhouse.com or coloradodreamhouse.com

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