Denver’s real estate market is showing signs of cooling but compared to the rest of the nation, it’s still very much a seller’s market. So how do you compete in a hot market like the Mile
Tips For First Time Home Buyers In A Competitive Market
Denver’s real estate market is showing signs of cooling but compared to the rest of the nation, it’s still very much a seller’s market. So how do you compete in a hot market like the Mile High City where options are limited and home prices are high? Check out the arsenal of tips below that will help ensure you land the property of your dreams.
Have your pre-approval and proof of funds ready to go
This part can very make or break for first-time homebuyers. Even if you haven’t started your home search yet, it’s important that when you do, you have your finances in order. Getting a mortgage preapproval not only allows you to learn how much house you can afford, but it also allows you to move quickly when you do find the property you want. In order for you to be “offer ready” when you find the property you want, it’s crucial to have any supplemental paperwork, like your mortgage pre-approval and proof of funds for the down payment, ready to go ahead of time.
Keep your offer simple
Most offers include contingencies — things like completing inspections and receiving a mortgage commitment — that needs to happen for the transaction to move forward.
When looking at offers, sellers tend to see contingencies as potential opportunities for the deal to fall apart. As a result, they’re more likely to choose an offer that’s relatively “clean” or reduces their risk of potential hang-ups. In a competitive market, you might see other buyers removing or reducing their contingency periods to make their offer more competitive.
Make sure your offer is strong
Besides keeping your contingencies in check, there is another component of the offer that will help set you apart from the crowd and it’s fairly obvious — the offer price. As for how much you should offer, consider the asking price first. If it’s within your budget, you may want to at least offer that amount if not a little more. Consider the amount listed on your pre-approval as your maximum, and work within those limits.
Competition is prevalent in the Denver real estate scene, but don’t be discouraged. With the right agent on your side and a strong offer, landing the house of your dreams is very much a reality. Contact Metrowest today to get started!
I have been in the mortgage industry for over 30+ years and have managed all aspects of the process from being an account executive who managed large origination clients to being a Senior Level Manage....