The housing market is having a moment right now. Whether that moment is good or bad is yet to be seen. One thing’s for sure: Buying a house right now is complicated and alluring all at once. Lots of people are searching for a new home, but sellers are less motivated due to COVID complications.
If you’re on the lookout for homes for sale in Estes Park, it will serve you well to get familiar with the market and buying process ahead of time. Finding a home you want is hard enough; the really frustrating part often comes afterward, when a bidding war ensues. If you’re locked in a bidding war and want to make sure that your offer is as appealing as possible, take a look at these tips.
Have a firm budget
The last thing you want to do is overextend your budget bidding on a home you can’t really afford. The trick is to start with plenty of budget wiggle room in the house you bid on so that you have the ability to offer more if need be. Use a mortgage calculator to help you understand monthly payments ahead of time.
The less hassle you can create for the seller, the more likely they will want you in their house. Pre-approval letters help you stand out as a reliable offer, among others. You can even have a bank prepare a letter of approval specific to the house you want to buy.
Use a high down payment
A higher down payment shows the seller that you are serious about their property. You can even pay more “earnest” money (the amount deposited when you make your bid.) Usually, 1% is the standard amount for earnest money, but you can increase the amount to 10% or even 20%.
Offer more money
The catch to this otherwise obvious tip is that you will have to pay cash for any amount over what your lender approved. That means you’ll need a bit of extra safety net to be able to afford to bid more. Even a few thousand dollars more over the asking price can be enough to entice a seller to choose you.
Contingencies allow a buyer to back out of a deal upon an inspection finding major issues or a financial issue occurs. In general, you want to keep contingencies. They are a safety net for you and can save you major financial hassle. But, if you’re really serious about finding the right house and are willing to roll the dice, waiving contingencies can show the buyer you’re really serious.
Have your realtor prepare multiple offers of different bids ahead of time. Moving with speed and urgency will show your buyer that you are an easy customer to work with and will also save you time and money.