In Denver’s hot real estate market houses have been known to go under contract within hours. With low inventory still a problem in the area, sellers will often receive several offers over asking price. But in such competitive bidding wars how do you stand out outside of being prequalified for a mortgage?
Here are 5 ways to stand out in a bidding war:
Write a letter that stands out by referencing a specific personal item in the home, if possible. You can also include a photo of yourself or your family to really show off who you are. Know who your seller is. If you’re putting in an offer on a foreclosure home, for instance, a personal letter won’t be of much help. However, individual sellers and even estates can often be swayed by this personal touch.
Flexible Closing Dates
Sellers may have a specific needs in regards to closing. If your agent is able to find out their specific timeline, do your best to follow it. If you are unsure of the timeline, include a clause stating that you are flexible with closing based on the seller's needs.
Don’t Include Contingencies
It’s not generally recommended to waive an inspection contingency as you want to ensure you are making a good investment, but there are a few other contingencies you can waive to make your offer stand out. For instance, an offer without a contingency to sell a current home will be more appealing. Talk with your agent for ideas of other items you feel comfortable waiving.
Pad the Earnest Money
Earnest money is in place to prove you are a qualified buyer. If you are looking to really stand out, offer to pay more than the sellers are requesting in earnest money. This shows you are a strong buyer and able to secure financing.
Include an Inspection Waiver
Getting an inspection on your new home is highly recommended. However, there is some wiggle room you can write into a contract. Consider including a clause stating you will not ask for inspection items to be addressed if they are under a certain dollar amount and pose no immediate health or safety risk. This type of clause can give sellers a sense of security and help sway them toward you offer.
Write something about yourself. No need to be fancy, just an overview.