Buyers Take Your Mark...

...Get Set... no false starts here...the summer buying season is off and let the Buyers Beware, it is HOT!  With very low inventory and a housing market that catapulted with jet propusion into a market favoring the Seller,  every minute counts.

If you have not read the article by Michelle Higgins in the Sunday Real Estate section of the New York Times, it is informative and to the point of the housing market these days.  Of course, you say, " iI's New York!", however,  be wise and take notes as the boot camp for buying is not exclusive to New York real estate.  Several of her points are more than relevant to the Denver area market, and points that buyers should use as their offensive game plan.

Some of the strategies are:
1.  DON'T WAIT FOR THE OPEN HOUSE.  Schedule a showing for the week prior to the first open house and use the open house as your second visit.
2.  FORGET ABOUT GETTING A DEAL.  Multiple offers are flying through the doors of well priced listings.  Contingencies and room to negotiate will only make you lose the baton.
3.  DON'T DELAY. Being first in allows you the position to bring the offer up if there are other bids.
4.  BE PREPARED.  Have a prepared lender approval letter or buyers financial statemet along with a short resume/bio.  This creates a level of confidence for the seller that the offer is sincere and credible as opposed to an offer that will just tie up the property. 
5.  RAISE YOUR DOWN PAYMENT. The new normal is higher than 20% and making a portion of that earnest money non-refundable gets you in the game!
6. BEWARE CONTINGENCIES.  Be prepared to keep additional provisions limited.  If there is a loan to be approved, keep the inspection objection period short and keep the list necessary.  Appraisals are beginning to keep up with the fast increase in housing values, but have the clarity and perhaps cash to make up the difference.
7.KEEP YOUR EYE ON THE PRIZE.  In bidding wars, buyers need to be prepared to bid high or add escalation clauses, but the walk-away number should stay within the buyers psyche.
8.TIME IS OF THE ESSENCE.  Point taken.

The most important point or strategy that Michelle did not mention is the agency relationship with a Realtor.  The internet is often helpful in assistin buyers durin the home search, but often the various websites have either incorrect information or the houses listed are no longer available.  The internet sites do not list the ever increasing "coming soon" housing inventory that many buyers are using to their advantage.  Get a coach, your Realtor, that will give you the time and the professional advantage to get you to the finish line with the property that is first on your list.

Contact me for more information about the Denver real estate market.  I work with Buyers and Sellers in the city close areas of Denver and as far south as Castle Pines Village.  I have been a Realtor for over 30 years.

Judy Fahrenkrog
Kentwood City Properties

The information in this blog was based on the article in the Sunday, June 2, 2013 New York Times Real Estate p. 10
by Michelle Higgins. posted: June 4, 2013 - Judy's Denver - Blog
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