It has been tough for many Denver area buyers to get a home under contract. For some buyers, the biggest obstacle comes first — when you have to sell your current home before you can buy the next one. Here are some helpful tips.
1. Decide Why You are Buying
If you don’t have a compelling reason, you may want to hold off. Another reason I tell clients to possibly wait is if they tell me they’re not planning on staying in Denver for more than a year or two. Investing in real estate will always pay off, but it’s an 8-10 year process for markets to come back around. Right now Colorado (and especially Denver) is at a high peak of price increases.
2. Know That Every Transaction is Different
Every transaction is different and depends on the strength of your negotiating position. Some things you can do to strengthen it are:
- Increase your downpayment;
- Be ready to close without having a contingency (which may mean having your home sold first before you put an offer on another property);
- Have the cash to cover an appraisal deficiency (this is when the appraisal comes in lower than the offer price);
- Know the house well enough or have an inspector walk it with you prior to writing an offer so you can purchase as-is.
You must discuss these things in detail with your agent and make sure you understand not only your rights but also your obligations. This market moves so fast that it’s good to be prepared prior to even looking. Finally, you must have a lot of patience and know that this is a stressful time even in a normal market. Give yourself a break when needed! Happy home hunting!
