Tag Archives: Denver Real Estate

A Comparison of Denver Real Estate vs. National Inventory

OK so this week I’ve been raging on and on about the lack of housing inventory in the Metro Denver Real Estate Market.  Sorry, but the fact remains we are selling more homes than we are listing!

Across the Nation there is an inventory shortage, but Denver’s shortage is even more severe.

Interesting comparison!

Selling Your Home? Don’t Make These Mistakes!

Spring time is approaching and many Metro Denver home owners are planning to sell in 2014.

Selling a home takes planning and preparation as you don’t live in a home the same way you sell it.  Any seller who has tried to do so will probably tell you the best thing to do is spend time making the home look fabulous BEFORE you put it on the market.

As an agent, I know for fact the more time a home owner spends sprucing up the home the less time it spends on the market.  This fact translates into a huge convenience factor, as few home owners appreciate having to vacate their home every time it gets shown.

Showing Availability

When an agent wants to come by with clients to see your home, don’t play “let’s make a deal” with the showing time.  Your house is on the market for sale. The agent and their clients typically have a list of homes to see and if you make it inconvenient for them to see your home during that time allotment, chances are they won’t even look at it!

Repairs are part of Home Maintenance

Repairs of safety and health issues are repairs you need to make immediately.  Leaky faucets, dirty chimneys, locks that don’t work with ease are all things you are going to need to fix.  Why not have your home pre-inspected by a professional?  By doing this you place your home above all the competition, making it even more attractive to a buyer.  Having a home in good repair reflects very well on you and gives the buyer the confidence he’s not buying a “problem money pit.”

Over Priced

Pricing is so sensitive these days.  Making the mistake of pricing you home out of the market is not advised.  The longer your home stays on the market the more “shop worn” it will get.  Your agent will need to respond to inquiries like, “why has it been on the market so long?”  Buyers think there must be something wrong with it when it doesn’t sell in a normal amount of time.  The longer it stays on the market the more likely an even bigger price reduction will be needed.  Price it within the market or slightly, and I do mean slightly higher and you will sell quicker and for more money!

Unwilling to Negotiate

Negotiation is not always about price.  Often a good negotiation is when both parties get what they want.  That may be a lesser price or it could be a bigger convenience.  No two negotiations are the same so keep an open mind when negotiations start, have a  Plan B and C incase Plan A doesn’t work out.

Unpleasant Odors

Simply put, “if you can smell it, you can’t sell it.”  If your house can’t pass the smell test you need to do something quickly.  Smoke? Stop.  Carpet dirty? Have it professionally cleaned.  Pet odors? Not everyone enjoys the smell of a wet dog, Keep Fido or Puffy elsewhere for awhile.  There are companies that specialize in removing odors.  Hiring one might be the best decision for your sale.

Successful Sale

A successful home sale begins long before the home goes on the market.  I begin with a consultation and then I bring in the stager.  She helps my home owners see their homes through the eyes of the potential buyer.  Her staging advice and my marketing strategy help educate the home owner and set them up for having a good experience during the sale of their home.

 

Data provided by ActiveRain.com.
ActiveRain is an online community of real estate professionals who exchange best practices, write real estate blogs, and get free education from the industry and their peers.

Tricks of the Trade ~ Use an Escalation Clause to Outbid Competition

 

Getting Your Offer Accepted! – Write an Offer with an Escalation Clause in the Case of Multiple Offers (Part 11 in a Series)

 

 

How to win when everyone wants the same one!

How to win when everyone wants the same one!

Have you found the home you want to buy and are now writing an offer? Did you just learn there are other parties writing an offer on your home too?

Welcome to a Seller’s Market!

Denver real estate is currently experiencing a shortage of inventory but an abundance of buyers looking to take advantage of the low interest rates. This situation doesn’t seem to be easing up especially in the price ranges less than $350,000. The lower in price the house it the more competition there is.

If you are serious about winning the bid there are some things you can do to assure the seller likes and accepts your bid above all others.

Now is not the time to play “Let’s Make a Deal!” Now is the time to show the seller your good intent by offering a price on the home that exceeds the list price and includes and escalation clause.

 What is an Escalation Clause?

Escalation Clauses are used in the case of competing offers. When there are more that one offer on a property an offer with an escalation clause will kick in. Typically such a clause will indicate the buyer is willing to pay $X more than the highest offer increments of $2000.00, up to a value of $X

So in simple terms say the house is listed for $300,000. There is a competing offer for $315,000. The escalation clause would make your offer $317,000.

How do you know there actually is a competing offer?

Good question, it’s hard to trust when money in involved so within the escalation clause there is a stipulation that the listing agent must show the competing offer along with the lender letter indicating that the other buyer exists and can actually purchase the property.

 Do Escalation Clauses Work?

In theory they do work, but as I’ve been discussing though out this series, sellers have different goals. Sometimes price is only one part of those goals. If your offer isn’t up to the seller’s standards in terms, personal property, conditions, and/or closing date then the escalation clause may not work.

You can also get out bid. The competing offer might have offered more.

Escalation Terms

There are no set rules for how large an increment you need to set or how high you should go. Knowing what the other offer is would be helpful, but that knowledge isn’t something we are privy too. Some homes are bid up tens of thousands of dollars and others only a few thousand. It really depends on the value of the home and the potential future value. If you don’t feel comfortable bidding the home up, then don’t.

Escalation clauses are meant to help secure the home in a rising market. It is another tool to accomplish a goal.

Begin your home search online right here!

If you are just starting the home buying process and are in need of an experienced buyer broker, pick up the phone and give me a call.  I work hard to make sure my clients are the ONE WINNER! Call direct 720-279-4599

 

 

 

Tricks of the Trade ~ CTM Digital Contracts are a Professional Plus

Getting Your Offer Accepted ~ Be sure your offer is professionally written using CTM digital software (Part 10 in a Series)

There will be only One Winner, let it be YOU!

There will be only One Winner, let it be YOU!

The Objective is To Look Good in the Crowd of Offers!

When a seller receives only one offer on his/her house, usually that offer is the one they work with assuming it has acceptable terms. In a seller’s market where it is not unusual to receive multiple offers the importance of having a well written offer that is presented in a professional manner becomes critical.

Let me illustrate this by telling a story. Recently I had a listing that was very appealing in price and location. I received 17 offers on it within 48 hours.This is not normal but due to the price of the property many buyers wanted it.

The first offer was for less than 1/2 the listing value. These offers come in without the buyer even looking at the property. The following offers were more realistic with a variety of terms.

Messy Offer is Not a Good Reflection on You

One offer was scanned and emailed to me so it arrived in a pdf that I had to read sideways. Frankly, it was too much trouble for me to insert it into a reader to look at in a normal reading manner. I was able to tilt my head to read it and determine the terms, which I was recording on a spreadsheet.

I thought at the time how unprofessional the offer was. It was hand written and half the blanks in the contract were not filled in. If we were to accept this offer I would have had to counter the offer filling in the necessary terms so we could proceed.

Needless to say this offer was not a serious contender.

Free Works but You Might Get What You Pay For…

Several of the other offers were written on the FREE digital contracts that are offered by our licensing agency. Nothing wrong with this, but this system is not commonly used because it is not seamlessly coordinated with both sides. It basically lets the buyer sign the doc online then the offer gets emailed to the listing agent, who then needs to use another program to let the seller’s sign digitally. It is a cheap way to write offers with no regard to integrating the entire contract and all the other forms.

The rest were written on the CTM digital software officially sponsored by the Colorado Association of Realtors.

What this means is because I use the state officially sanctioned software, our transaction would move smoothly between all the parties working on the contract, including the buyers, seller, lender and title company. All parties can log into the dashboard where the contract and addendum’s are stored and be able clearly read the documents. Being able to read the docs seems like something that should be expected, but it wasn’t so long ago that we used fax machines. After a contract is faxed a time or two, clear reading was difficult at best.

It’s because of this fact that the real estate industry has embraced digital contracts. Yes, it’s easy to sign digitally saving everyone time, gas, paper and ink, but most importantly we leave a paper trail we cal all actually read!

Some agents in our industry have yet to embrace technology. I don’t understand professionals who refuse to do so. Perhaps they don’t do enough business to warrant paying the small fee for digital contracts, if this is the case I question their dedication to the business.

When there is a strong chance that your offer will be competing with others it becomes even more important to look good, really good. Using the most widely accepted contract software will be a plus.

 Anxious to Find a Home? Begin Your Denver Home Search Here!

If you are interested in finding a new home now or in the near future, please call me for a consultation. I welcome your call!

Call direct 720-279-4599

Tricks of the Trade ~ Include a Pre-Approval Letter with Your Offer

Getting Your Offer Accepted! ~ Write an Offer with a Pre-Approval Letter from a Recognized Lender (Part 9 in a Series)

Denver Real Estate is Hot

Don't be a gambler with your financing!

Don’t be a gambler with your financing!

Polishing up your offer with a pre approval letter from a recognized lender will get a gold star from the listing agent. Why? Because so many transactions fail to close because buyers have chosen a lender based on a TV/Radio ad touting awesome rates.

The reality is, a lender can promise you anything, what counts is how they deliver. Working with a lender that is local, someone you can meet in person, look into their eyes and know most likely they will deliver what they say is so important.

I joke how it’s important to have someone local because you can be standing on their doorstep when they need a push to get things done. Local lenders like me build their business on delivering what they promise and being there to solve problems when necessary. Working with someone who comes highly recommended because of past successes eliminates cause for worrying about the unknown.

Choosing a lender can be a crap shoot. You never know if you made a wise decision until the very end. Asking for a trusted referral from a lender with a good track record is a wise course of action.

Pre-qualified is not the same as Pre-approved

Many buyers mistake pre-qualifed for pre-approved. There is a huge difference. A pre-qualified letter is merely the first step in getting a loan. Basically this qualification only checks the surface debt/income and makes an assumption the buyer has good credit and no skeletons in the closet (judgements/liens). With a pre-approval the lender makes investigations into the credit report and verifies the income/debts before they issue a pre-approval letter.

Pre-approval is just that. The buyer is approved pending the home they purchase. All that is needed is an inspection and appraisal in order to approve the loan.

Always go for the pre-approval letter. If you intend to purchase a home at some point in time, a pre-approval letter will be a strong negotiation point in your favor.

Don’t be a riverboat gambler, go with a proven method when getting financing for your home.

Need a Buyer Broker?

If you are in the market for a good negotiator who will represent your best interests when searching for a home. Call me.  I welcome your call!

Call direct 720-279-4599

 

 

 

 

 

 

Start your Denver Home Search here.