Tips for Making a Competitive Offer in a Hot Denver Market
Are you in the market for a new home in Denver? If so, you may have found yourself in the midst of a hot market, where the demand for housing is high and the competition is fierce. While this can be an exciting time, it can also be overwhelming, especially if you’re struggling to make a competitive offer. But don’t worry - I’ve got you covered. Here are some tips for making a competitive offer in a hot Denver Colorado market:
Appraisal gap
One of the ways to make a competitive offer is to bridge the appraisal gap. This means that you offer to pay the difference between the appraised value and the agreed-upon sale price. This helps assure the seller that even if the house doesn’t appraise for the agreed-upon sale price, they’ll still receive the full amount they were expecting.
Escalation clause
An escalation clause is an addendum to an offer that allows you to increase your offer by a certain amount automatically if there are competing offers. This can help ensure that you’re the highest bidder without having to keep going back and forth with the seller.
Wave the inspection
While this may not be ideal, waving the inspection can be a way to make your offer stand out. Keep in mind that this should only be considered if you’re comfortable with the condition of the home. Let me be clear on this one, even though you are waving the inspection, you ALWAYS should get an inspection so that you know the condition of the home you are buying.
Double the earnest money
Earnest money is a deposit you make to show the seller that you’re serious about buying the house. By doubling the amount, you show the seller that you’re even more committed to the sale.
Offer above asking price
One of the simplest ways to make a competitive offer is to offer above the asking price. However, keep in mind that this could trigger an appraisal gap, so be prepared to cover the difference if the home doesn’t appraise for the agreed-upon sale price.
Quick close
The faster someone can sell their place, the more likely they are to accept an offer. By offering a quick close, you show the seller that you’re ready and able to move quickly, which could give you an advantage over other potential buyers.
Cash offer
Finally, consider making a cash offer. Who doesn’t love an all-cash offer? The main benefit is that you don’t have to deal with a lender and their regulations/deadlines. This can make the process smoother and faster for both you and the seller.
Making a competitive offer in a hot Denver, CO market can be challenging, but it’s not impossible. By using one or more of these tips, you can increase your chances of making a successful offer and landing your dream home. As always if you have any questions reach out!