The Denver housing market, like many in the country, is coming around with a vengeance. As some predicted, there are suddenly lots of people wanting to buy but still not a whole lot of available homes for sale.
This classic case of demand exceeding supply has many Denver home buyers making desperate moves to ensure that they get the home they want. Unfortunately, these actions generally end up creating more problems for both the buyer and the seller.
If you're planning to sell your Denver home, here are some scenarios that will start off looking great but could possibly leave you in a difficult situation.
Willing to Buy Sight-Unseen
In today's busy and competitive market, a home might be listed and be snapped up within a matter of days. To win their prize, some desperate buyers are making offers without ever actually seeing the home.
The offer states that the sale is contingent on the buyers visiting the home within a certain time period. However, when the potential buyer finally sees the home and decides he doesn't want it, everyone has lost time and potentially some money.
Unless the property you're selling is currently occupied by a renter who isn't keen on people walking through the home, never accept an offer to buy sight-unseen.
Many buyers are convinced that money talks and sadly many buyers listen. The problem is that an offer far above list price will often fall through. Generally this is because the value of your Denver real estate won't support such a high sale price, and lenders won't shell out more than the property is worth. That's what started the whole mess in the first place. Also, federal regulators are keeping a much closer eye on lenders these days making them less inclined to gamble.
The possible exception to accepting an offer greater than the home's value is an all-cash deal. Buyers with cash in hand generally can pay any price and an appraisal is at the option of the buyer.
Short Contingency Periods
Buyers use this tactic to make the seller think that everything will happen in a jiffy. If you see a clause stating a contingency removal within five days of accepting the offer, don’t bite or you may end up disappointed.
The process of selling a home generally takes a lot longer than five days, especially in the current market. Lenders who downsized their staff when things were slow now have fewer people to handle this sudden increase in home sales and refinancing.
A truly interested buyer will walk with you through the normal transaction process, in hopes that you both get what you want in the end.
As the market continues to heat up, buyers will continue to worry about losing their dream home. Keep an eye out for those who promise the pot of gold that they probably can't deliver.
Let the professionals at the Bandy Team help you buy or sell a Denver home. Contact us for a no-obligation consultation. If you’re thinking about buying a home in Castle Rock, we can show you some terrific properties in Castle Pines, homes in The Meadows, town homes in Founders Village, and real estate in Castlewood Ranch.