With inventory so low right now, buyers are finding it difficult to find homes. The competition is especially high for homes listed at or under $600,000. A home can be listed on a Thursday, start 15 minute showings on Friday and be under contract by Monday with well over a hundred showings, multiple offers above asking, and closing soon after for 10% over asking with a couple of months post occupancy for the sellers at no extra cost to them. This can’t last forever. Preparing To Make An Offer In The Boulder Area can be a confusing time in your home buying process.
Needless to say, finding the perfect home in the Boulder Area right now can be stressful. Buyers have two options in this situation. First, be prepared to offer well over asking with a well written contract that appeals to the seller. You will want to prepare ahead of time by discussing strategies with your Buyer’s Agent. The other option would be to wait until more homes hit the market. The good news is that you might not have to wait too long. I have seen an increase in the number of listings in just the last few weeks. Three weeks ago, there might have been one home that fit one of my clients’ criteria but this last weekend, there were seven. As the number of homes on the market increases, I believe the competition for those houses will level off so that offers of $50,000 to $80,000+ over asking with full appraisal gap clauses and inspection waivers will not be the norm.
But say you find “your house” today and want to put in an offer. How do you go about doing that? First, it is so important in this market to have a real estate professional working for you before you start looking. She can advocate for your best interest, negotiating for and advising you. So please take the time to interview and hire a professional buyer’s agent.
When writing an offer on a home, you will want to work with your real estate agent to write an offer that you are comfortable with. The offer is binding by both sides once it has been signed by both the buyer and the seller, so it is important to review the offer in its entirety with your real estate agent. If you leave anything out and the seller accepts and signs the contract, it’s too late to make changes. That’s why your purchase offer must address the minute details and aspects of the sale. This blog will give you some useful insight on preparing an offer in the Boulder area. Seasoned real estate agents have seen it all, and will help guide you through this difficult process. My years of knowledge, and experience will help make this process seamless for you!
Step One Preparing Your Offer In The Boulder Area
In the state of Colorado, the offer is prepared using a standard Contract to Buy and Sell Real Estate form. There are many areas that can be customized and filled in or left blank to generate the offer the buyer wants to submit to the seller. It is important to have your name documented as you would like to take title on the property. The title company will use this to draw up the closing documents and deeds. There is also a section on the contract as to how you will take title to the property. This is another area that should be discussed with your agent. The legal property description as well as the street address are also important to document correctly on the Contract to Buy and Sell. While preparing this offer, you will want to include specific details about a range of items. Some of the most important things for you to include are:
- The amount of the earnest money deposit and the date it is due
- Your name as a buyer and the property owner’s name as the seller
- The total purchase price and the type of purchase (cash or type of loan)
- Full legal description and so street address of the property
- The title company, brokers, and others involved in the sale
- Terms and conditions of their compensation
- The options available to both buyer and seller should either party default
In addition to the main terms of the deal are the many dates and deadlines of the deal. Here are some examples: the inspection objection deadline, appraisal deadline, and other time-sensitive items should be outlined for both the buyer and seller to complete. As the buyer you also want to put a time limit on how long the seller has to consider your offer..
Step Two Preparing Your Offer In The Boulder Area
Once an offer is sent to the listing agent, a seasoned buyer’s agent will reach out to confirm that the offer was received along with the pre-approval letter from the lender or proof of funds if it is a cash offer. The buyer’s agent will also make sure that the lender working for the buyer reaches out to the listing agent. After reviewing offers, the seller either accepts, rejects or counters your offer. If the seller counters the offer, the seller or their listing agent will send back a counter-offer for you, the buyer, to likewise accept or reject. A counter could include changes or modifications to one or more components of the offer, like purchase price, closing costs, or a contingency. This back and forth could continue until the buyer is satisfied with the seller’s requests or vice versa. Having a knowledgeable Realtor by your side to guide you and negotiate for you is important to ensure you are getting what you need as the buyer in your Boulder area home.
Step Three Preparing You Offer In The Boulder Area
It’s a deal! Or not. Once the seller accepts the initial offer or the counter-offer has been signed by both parties, it becomes a legally binding contract, and both the buyer and the seller work to meet the terms and conditions outlined in the contract. Again, a good real estate professional will help walk you through, step-by-step the process and all of the agreed upon stipulations of the contract until you finish at the closing table and receive the keys to your new home!
How Can I Help?
If you are looking to buy a home in Boulder or the surrounding areas, please reach out to me! I am still keeping social distancing guidelines when it comes to showings for my listed properties as well as taking the utmost care when showing my buyers homes. If you have any questions or concerns, please feel free to reach out and contact me! I will continue to provide my clients with market updates so they can make informed decisions. If you are planning on buying or selling a home in the near future give me a call. I’d love to help you.
If you would you like more information about the Boulder area or the real estate market specifically, click here to download my current market report on the area or visit this link – http://elisabethnelsonrealestate.com/market-report-newsletter/
Luxury Home Specialist & New Home Specialist
Coldwell Banker Realty
(303) 916 5859