3 Things Sellers Can Negotiate in a Hot Real Estate Market

The real estate market has been heating up in many places in the US. Because of that some have become seller’s markets, meaning that there are more buyers Real estate agent in front of a sold house with her customerfor the available properties listed. In a hot market like that sellers will find that there are three things that can be negotiated more easily than if it was a buyer’s market.

One important thing that can be negotiated is the closing date

Typically, closing happens in about 45 to 60 days from a completed contract (meaning both buyers and sellers have signed it). In a seller’s market you can negotiate a shorter or longer closing period, depending on your needs. If you need to find a new place to live, negotiate a longer period of time. If you have already entered into a contract for a new property and need to settle fast, negotiate a shorter period.

Appraisal amount

Another item that can be negotiated happens if the contract amount is over the appraisal amount. Instead of losing the contract, negotiate with the buyer to have them bring a bigger deposit to the table. Since most mortgage companies won’t lend over the appraisal amount, a lot of the time if that happens the sale is lost. If the buyers can do it, have them bring that difference with them to the settlement table.

A last item that can be negotiated in a sellers market is an “as is” sale

An as is sale is when you sell the home in the condition it is in, with no repairs or updates necessary. If you found a buyer who wants your home, and there are others lined up behind them, you are definitely in a position to tell your buyer “I’m not fixing anything, the sale is ‘as is’ or I’ll move onto the next person.” The only time this may not work is if it is an FHA sale. The federal government will require certain repairs if found in the inspection. That said, you can still negotiate the amount you would be willing to pay to fix them.

Is It Better To Rent Or Buy in a Hot Real Estate Market Like Denver

The real estate market in Denver is hot and the question can come up, is it better to rent or buy in a hot real estate market? The answer depends on a lot of things and only you can answer it.

First time home buyers

Is It Better To Rent Or Buy in a Hot Real Estate Market Like DenverThe market in Denver can be really difficult right now for both buyers and renters. First time buyers have it tough because the homes normally available to first time home buyers are now higher priced and out of reach or are very hard to find, but they are also getting priced out of the rental market as well. So what can you do?

Weigh your options

In order to make a decision, weigh your options. Would it be better for you to continue to rent for awhile? If not, are you willing to find a property below your expectations that may need work? Sometimes that is a good idea if the ready to move in homes are out of your price range. Also look in up and coming neighborhoods. They may not be ideal… yet. Those that appear to be getting popular will mean your investment will give you the equity you need to move up later.

Be sure to save your pennies

Having a substantial down payment can help you get a home when people with smaller amounts saved find it harder to buy. Having more to put down can help you get that house too. You look like a better potential buyer to a seller entertaining multiple offers and it could give you an edge.

Rental potential properties

Look for a property that could have rental potential. Either through an income suite or later when you decide to move up. An income suite could provide you with the ability to purchase a higher priced home because the income will help with the mortgage.

Your best bet is to talk with a Realtor to help you figure out when the best time to buy for YOU might be.

How to Get a Great Deal in a Hot Real Estate Market Like Denver

Markets like Denver have gotten hot after years of slow real estate markets. A hot real estate market means bidding wars and paying more than you want for the home you want. No buyer wants that, so how can you get a great deal with the markets heated up?

There are a few things that you, as a buyer, can do to help give you a leg up over others and avoid expensive bidding war scenarios. It will take some effort on your part, but worth it in the end.

How to Get a Great Deal in a Hot Real Estate Market Like DenverFirst, be available to view a home on short notice. Getting to see new listings the minute they go on the market may mean getting a jump on other buyers, short circuiting the bidding war scenario.

Next, have your financing in order. Being able to confidently make an offer on a property, and tell the seller that you have your financing in place may put your offer above one that is higher but may be from a buyer without financing in place. Also, have a home inspector ready to go on short notice. Having everything lined up means sellers know you are serious about buying.

Be decisive. Hemming and hawing or going back and forth between one property and another may mean missing out on both. In a hot real estate market, you should know what you want, be clear with your Realtor about your preferences and then make a decision quickly when you see what you want.

Hire an experienced Realtor to represent you. Make sure they listen to what you want as a buyer, are aggressive in looking for it and representing your interests. An inexperienced Realtor can cost you the chance at getting the property you want. A timid Realtor may cause you to pay more for a property.

Don’t let a hot real estate market mean you pay too much for your dream home.