Denver Home Living Huettner Capital Summer 2017 | Page 33

« Therefore, buyers must make an initial offer that is strong on price but
also offer flexibility and convenience for the seller. »
exactly what you can and cannot do for financing.
Once you know how large a loan you can obtain, you will
likely need to decide whether you are even comfortable with
spending that much. Quite often, buyers underestimate
how much they can borrow and wind up being able to buy
far more house than they want or feel comfortable buying.
At this point, buyers should identify a target price range of
home they want, leaving room to go higher if they find a
home they feel is just perfect. The key to this step is to write
these numbers down so you are more likely to second-guess
them now and then stick to them later when making offers.
OTHER THAN INCREASING THE PRICE,
HOW CAN BUYERS MAKE THEIR
OFFERS MORE COMPETITIVE?
With multiple offers within a few days of listing, sellers are
seeking the biggest payout with the least risk and the most
convenience. Therefore, buyers must make an initial offer that
is strong on price but also includes flexibility and convenience
for the seller. There are a few ways to do that and stand out
from the competition, the following being the most common:
•
Acceleration Clause – You may not get a chance
to make a second offer so this clause automatically
increases your offer if you are outbid.
• Low-Appraisal Clause – This is basically an insurance
policy for the seller that you can and will still buy the
house if the appraised value is lower than the contract
price. Be sure to check with your lender on this first.
• No Contingencies – Include one for financing
and make it short. Leave out everything else
including selling your current home, if you can.
• Close Quickly – Tell the seller you can
close in two-to-three weeks to reduce
one advantage of cash buyers.
• Give In to the Seller – Agree to all of
the seller’s conditions that you can and
ask how else you can be flexible.
• No Inspection Items – Get an inspection
but don't include a clause for the seller to fix
anything unless required to obtain financing.
• Keep It Simple – Use the standard contract. The more
you add, the more complicated your offer will appear.
A final tip is to make sure you have experienced profession-
als. Experts with several years of experience are critical in
markets like this.
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