Dear Friends & Neighbors,
Maybe this sounds familiar; you’re ready to buy a home so you start window –shopping, which happens to be a good idea. You go to an open house and find more than 20 people checking the place out. There’s rumors of numerous offers and you later learn the house sold for $50,000-$80,000 above asking price, in cash, with no contingency clauses.
Although buying a home in a strong seller’s market can present added challenges, it’s still possible to secure a place you’ll love. I’d like to share a few suggestions when buying in a hot market like Denver:
Get a good real estate agent
Having a good agent is particularly important in a hot market. You want someone who hears about listings as soon as they hit the market, or before. Also, a good agent knows how to make your offer stand out.
Good buyer’s agents have a track record of winning more than half of their offers. They keep track of a changing repertoire of tips and techniques, and have built up relationships with listing agents.
DECIDE WHERE YOU CAN COMPROMISE
Some buyers see a dated kitchen and or bath and run for the door. That’s less competition for you. Finishes and appliances are easy to change and styles come and go, but it’s hard to change a floor plan, and you’re stuck with the location. Get clear on what you can live with and what is a deal breaker.
Get your financing lined up and offer a quick closing
Talk with several lenders. In a hot market, you’re looking for someone with a reputation for closing loans quickly, and delivering on promises.
Finally, be patient
As a buyer you might have to make numerous offers before winning one. After losing out on several homes, you might feel tempted to make a desperation bid or give up. Don’t do either. Persistence pays off in the long run and ultimately the investment is worth the effort.