How to Compete in Colorado’s Competitive Real Estate Market Buyer and Seller Tips

Buying a house in a market where homes sell before they hit the MLS can be tough. And, this is what you are dealing with in places like Denver, LA, and New York as well as other places in the world. The competition for homes in these markets can be fierce, particularly in especially desirable neighborhoods. In fact, what these buyers and sellers experience is not like the rest of the nation which is why their deals require extra finesse. Here’s what today’s buyers and sellers can expect from a transaction in these highly competitive markets.

Multiple Offers – Expect to compete with one or two simulations offers, but the reality in some markets is you might actually be competing against three, four, or five additional offers.

Emotional Puppet Strings – It is standard now for buyers to write emotional offer letters that are intended to make their offer seem more appealing.  

Cash Offers – Cash offers are more common and are considered more favorable over a financed deal even in situations where you are talking about less cash. 

Losing Out to Other Offers – Ask your Realtor how many deals they anticipate could slip through your fingers before you have one accepted, and the average answer should be 3-5.

Appraisal – The truth is that homes in highly desirable areas are appraising for far more in todays market. However, buyers must know that the finance amount often times relies on the appraisal, which means if your offer exceeds the appraisal you will need the cash to make up the difference.

Possession Takes Time – Even when buyers and sellers are rushing to close, there is only so much the Realtors can do to push things along more quickly than the standard thirty day close. This is why communication with your Realtor is critical for planning each move you make. 

Increasing Inventory in Your Neighborhood – It is inevitable that as soon as you list your home so will your neighbor.  Most Realtors in competitive markets do not see this as a problem, and in fact, it could be beneficial to everyone in the long run if both homes show well.

Sellers Market – Buyers should know that people are paying over asking price for premium properties. You should also be aware of practices like previewing offers where the homeowner will try to get as much traction as they can before accepting an offer, driving offers over the asking price.