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 $800,000. 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 tens of thousands over asking with a couple of months post-occupancy for the sellers at no extra cost to them. This can’t last forever but with the additional loss of homes because of the Marshall Fire, it is our current reality.
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—maybe as soon as June or July. 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 $100,000+ over asking with full appraisal gap clauses and inspection waivers will be reserved for the picture-perfect homes that don’t need any updates or fixes.
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. I can advocate for your best interest, negotiating for and advising you.
When writing an offer on a home, you will want to make sure that you are comfortable with the price, dates, and deadlines as well as the additional provisions. 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. My years of knowledge, and experience will help make this process seamless for you!
Step One of 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. 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
- How you will be taking title of the property
- 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
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 of 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. I 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 of Preparing You Offer In The Boulder Area
It’s a deal! 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 guide you, step-by-step, through 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 planning on buying or selling a home in the near future give me a call. I’d love to help you.
Luxury Home Specialist & New Home Specialist
Coldwell Banker Realty
(303) 916 5859