You’ve just walked into an open house of newly listed Golden Townhome or Condominium. It’s the perfect size, it’s within your price range and the community is ideal. You’ve had your eye on this development for quite a while waiting for one to come up for sale. However, there is a problem. Many other folks had the same idea and the open house is filled with other potential purchasers! They all seem to be of the opinion that this home would be perfect for them, also!, By the end of the day, multiple offers have been written on “your” dream home.
Trying to purchase a fair priced Townhouse or Condominium in Golden, Colorado gets very competitive. Golden, as well as many cities and towns in the Denver Metro area have been experiencing a Seller’s Market. Home inventory is low and prices are relatively high. While these conditions are great for sellers, they can make the process more challenging for potential homebuyers. Consider the following tips that may help you position yourself for success in finding and purchasing your perfect home.
Don’t Get Pre-Qualified - Get Pre-Approved!
Getting pre-approved, or having your lender verify your ability to afford a home loan for a specific amount, lets the seller know you’re qualified—and motivated. It demonstrates financial security, giving the seller confidence that the sale will go smoothly. The process is different than getting pre-qualified as pre-approval requires solid documentation, not estimates.
Work with a Realtor who knows the Local Market
A good local agent means the difference between getting your offer accepted in a competitive market and spending months unsuccessfully writing offers. Working with someone from outside the area or unfamiliar with the kinds of property you want could drag the process on for months.
Work with a Realtor that specializes in the kind of properties you are looking for.
With limited inventory and many buyers looking for the same thing, successful buyers think outside the box. They assume that every home could potentially be for sale. Work with an agent that uses old school, gumshoe real estate techniques. Look for a property where others are not looking. and expired or withdrawn listings from years past. Look at pre-market homes or “For Sale By Owner” homes that may not be listed by conventional methods like the MLS.
In a seller’s market, a listing today could be a memory tomorrow. You can’t always wait for that weekend showing. Try to be flexible and make yourself available to view new listings that meet your criteria as soon as they become available. If you like what you see, consider submitting an offer on the spot.
Make sure your broker knows the competition. Knowing how many people are interested in the house can help you come in with an offer that will be taken seriously Your broker might be able to find out from the listing agent how many people came to the open house and if it is likely to receive multiple offers.
Add an escalation clause in your offer. If you expect to compete with multiple offers on a property, consider using an escalation clause, which states how much more you are willing to pay over a competing offer. The clauses are very common to see in purchase offers right now in areas with low inventory such as Golden, Colorado.
Offer terms that make a seller’s transition simpler.
If there is a huge contraption of rusted monkey bars in the backyard the seller would rather leave behind, let them! If it helps move the sale forward, it could be beneficial to remove it yourself.
Being flexible with the Closing Date.
Accommodating the seller’s schedule is way to genuinely demonstrate your interest in working with them to make the transaction process easier.
Be flexible with Timing.
You can improve your chances of landing the home you want if you can show that you are willing to move as quickly — or as slowly — as the seller needs,. A seller looking to close the deal within 30 days may show less interested in an offer that will not close for 60 days.
Trying to buy a home in a sellers’ market can almost amount to a part-time job. Stay flexible with your schedule and be ready and able to move quickly when the right property comes along. Be sure to have the right team in place and be open to looking outside the box. You may encounter some stiff competition out there. Just stay focused and try to be patient. The right home is out there. Equip yourself with these tips and soon you should be able to get your perfect home!