Getting Your Offer Accepted! Write an Specific Performance Offer instead of Liquidated Damages (Part 8 in a Series)
Would be home buyers are finding it more difficult to purchase a home with the current conditions in the market. Denver real estate is experiencing a shortage of homes on the market yet there are plenty of buyers looking to buy. This causes buyers to often compete with other bidders for a home.
Competing means the seller will review the offers and decide on the Winning One based on criteria that is important to him/her. That might be the most net to him or it could be the offer from the buyer most likely to close!
All offers are not equal, some are written better than others. That is what this series of "Getting Your Offer Accepted" is about.
Make Your Real Estate Offer Stand Out!
Colorado Purchase Contracts provide for the buyer to purchase the house as Specific Performance or Liquidated Damages. This provision relates to the seller's remedy if the buyer should default.
If the buyer defaults on the "liquidated damages" contract the seller is limited to the amount of the earnest money as full settlement.
As in the case of "specific performance" the seller is not limited to the earnest money but can pursue damages in addition to retaining the earnest money.
Obviously a specific performance contract has more clout! If you as the buyer want to send a message to the seller that you are serious about your offer, this may be the way to go
As specific performance contact alone may not help you win the bid, but it certainly will help when combined with a few other strong selling points that are important to the seller.
Strategy Needs to Fit Your Goals and Ability
Preparing a strategy that works with your needs and ability is important. That's why it is necessary to work with a buyer's agent who will listen to your needs and help you make a plan that will result in getting your offer accepted.
If you are looking now or in the near future to buy/sell a home, please give me a call.