With the Denver Real Estate market so hot right now, multipleoffers are starting to become more and more common for the best homes inDenver. It certainly isn't something we have experienced in the recent past,typically a low ball offer was more the norm than multiple offers with manycoming in above asking price. So with our market changing to quickly, what isthe best way to handle multiple offers to make sure you get the right housebefore it is gone? Below are three tips that I share with my buyers to givethem the best chance to snag the perfect home before it is gone.
1)If you find the right house, jump on it beforeothers do. The longer you wait, the better chance there will be other offersand the better chance the price is going to be bid up. Ask yourself, is itbetter to agree to pay a few thousand more right now to ensure you get it? Mostpeople that have a hard time pulling the trigger usually lose out, or end upspending more in the long run outbidding other buyers once they decide they don'twant to lose the house.
2)For the best houses, and the ones that arepriced well to begin with, it is almost a guarantee there will be multipleoffers. When you know this is going to be the case, there is obviously no roomfor negotiating back and forth with the seller so be prepared to go in withyour strongest offer to begin with. If you have looked at the recent solds, andknow what fair market value is for the home, then you should also know how muchyou are willing to spend. Of course you don't want to overbid on the house, butdon't look at it that way. If you offer $10,000 more than the next highestoffer, but the price you offer is still $10,000 below market value, you arestill getting a great deal. So don't get caught up in what others are offeringand focus more on what is a smart buy and what the home is really worth.
3)If there is the house you just can't afford tolose, then consider adding an escalation clause to your offer. An escalation clausebasically states that you will pay X number of dollars over the next highestoffer. Of course you have to be careful with this and it is crucial that youput a cap on how you are willing to go. And make sure that you get a chance tosee the next highest offer to ensure it is legit. If played right, an escalationclause can definitely mean the difference between getting a house and losingout once again.
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