Are you trying to buy in a seller’s market? If you're looking to buy in the Denver Metro area, you certainly are. It can be frustrating to feel like the underdog with no power over a huge life
Buying in a Seller's Market - What to Do if There are Multiple Offers
Dated: May 24 2021
Are you trying to buy in a seller’s market? If you're looking to buy in the Denver Metro area, you certainly are. It can be frustrating to feel like the underdog with no power over a huge life decision. In a market where demand outweighs supply, there are often multiple offers on a home, and usually within a few days of being listed. Homes go on and off the market so quickly that you need to make your offer stand out. This blog will go over a few things you can do if there are multiple offers on a home you want to buy.
1. Get Pre-Approved
Getting pre-approved for a loan will show the seller that you’re a strong buyer and ready to commit. You’ll stand out because your financing is already in order. It gives you an advantage over other buyers in the eyes of the seller. Being pre-approved is appealing to sellers because you can close on a loan faster. Out of all the offers a seller receives, the one with a pre-approval will generally be chosen first.
2. Submit Your Best Offer
In a seller’s market, there’s no room for negotiation. As mentioned, homes are selling quickly, and it’s highly competitive. It’s unlikely that you’ll have a chance to negotiate back and forth with the seller. You need to submit your best offer, so if it still gets rejected, you know you did your best. Don’t get your hopes up to end up with a sweet deal. In a seller’s market, you would have to get lucky to find one of those!
Plus, you have to think about the offers other people might submit. You want yours to be competitive without overpaying too much. Bidding wars can quickly happen in seller’s markets. Be wary about that when you submit your offer. You don’t want to continue raising your offer until it’s too high. An agent can help you evaluate the value of the home and the state of the market, then offer advice on a good amount to offer.
3. Create Ease for the Seller
If you’re in the same position as the seller where you’re trying to juggle multiple offers on your home while trying to buy a different one, you know how stressful it can be. Do anything you can to make the seller’s life easier throughout this process. Here are three things you can do that the seller will appreciate:
Give the seller a few extra days to move out after closing without the need for compensation.
Offer to pay the difference between the appraised value and sales price
If your loan is solid, consider waiving the loan approval contingency
If you’re a seller and a buyer offers even one of these things, how much would they stand out among the others? Yes, there are many things to consider when picking a buyer, but it doesn’t hurt to put yourself ahead of the game by doing one of these things.
Talk to your agent about everything mentioned in this blog. They will help you make sure you’re getting a fair price and set you up for success when buying in a seller’s market. Our website is full of valuable information, whether you are looking to buy or sell a property. The Couture Group will create a custom plan based on your needs and will guide you through the strategic planning process whether you are ready to buy or sell now or in the future. Our job is to guide you down the path to a successful real estate transaction that creates a client and friend for life!
We look forward to helping you and appreciate the opportunity to earn your business. If you have any questions, please contact us today.
At The Couture Group we are a team of experienced and dedicated professionals who bring a wealth of knowledge and expertise to buying and selling real estate! Holly Couture founded The Couture Grou....