The spring real estate market in Denver is already in full force. Other local communities such as Highlands Ranch, Colorado Springs and Greenwood Village are also experiencing an earlier spring surge in the local housing market. It’s only mid-February and already buyers are facing situations where they are competing against other home buyers in multiple offer situations. Multiple offers are occurring on homes sometimes within hours of the time they are listed for sale. This is particularly true of starter homes priced attractively for first time buyers. There is limited inventory at the lower prices resulting in this competitive situation. Typically this influx of buyers starts in March or early April, however, with the unseasonably warm weather, the buyers are out much earlier than normal.
Low interest rates are also contributing to a more competitive environment for home buyers. Rates have been low for so long, however, in recent months they have begun to increase and would be buyers are concerned that interest rates will continue to rise making their new home purchase less affordable. From the home sellers view point in Colorado Springs, they have seen their home value increase every year and many home owners are holding with the thought that their home is a great investment and if they can make 10% or more in home value appreciation each year, then why would they sell.
What is the best way to deal with a multiple offer situation? The answer depends on if you are the home buyer or the home seller.
Denver Home Buyers Guide to Multiple Offers
- The first thing you’ll want to do is be sure that you are working with a great realtor who has experience dealing with multiple offers. This is true if you are buying a home in Highlands Ranch or Colorado Springs. Understanding the mindset of the buyer and seller and having been involved in similar situations will allow the best realtors to give you valuable advice on what to offer and how to get your offer accepted. Do you want to offer a higher price? Should you offer to purchase the house in as-is condition with no contingencies? Should you offer to close quickly? The best real estate agent is able to guide you by helping you write the best offer that you are comfortable with.
- Sometimes writing a letter to the seller telling them how you will be raising your family in their house and how excited you are about the prospect of taking care of their home is enough to convince the seller to accept your offer. This won’t get you the house in a situation where a competing offer is for substantially more money, however, if there are two offers that are close in terms of price, this may be the answer to the seller choosing your offer.
- Offer to pay all cash for the house. Not everyone can do this, however, if you have the ability to pay cash for the house, and then do it. Cash assures that buyer that there won’t be any issues between the time they sign the purchase agreement and closing. The likelihood of the deal falling apart on a cash deal are fare fewer and therefore this is an attractive offer in the eyes of the seller.
Denver Sellers Guide for Selling Their House with Multiple Offers
- First of all don’t be tempted to accept the first offer you get or the highest price. Be sure to review all of the details of the offer. It could be that the highest price offer has numerous contingencies which could result in the sale falling through, and you don’t want that. If the sale falls through, you have likely lost all of the original competing offers because they have moved on to other homes. This is something that a top Denver real estate agent will be able to help you decide.
- Evaluate all of the terms of each offer to determine which offer is the most likely to close. Financing contingencies, inspection contingencies, etc. can all be deal breakers.
Now that you have an idea of how to deal with the hot Denver real estate market, go out and hire a real estate agent who can help to educate and represent you in the buying or selling process. If you are thinking about selling your house in Denver, then you will want to have a local real estate agent help you to determine the value of your house. With home prices increasing so quickly, you want to be sure that you are working with a real estate agent who is connected with the day to day of the market who has the best knowledge of the current values of property in your neighborhood.