Kathy A. Torline-Nordstrom
ERA Herman Group Real Estate
Serving Colorado Springs
8 tips for Colorado Springs Home Buyers
As the Colorado Springs real estate market has continued to change, buyers no longer have the advantage when putting in an offer. Many sellers are no longer desperate, and in some cases sellers are getting multiple offers on their homes within days of putting their house on the market. In some neighborhoods and prices ranges, it’s now a sellers market.
Here’s some tips to help get your offer accepted:
- Be realistic on the price : The average home sold in Colorado Springs, goes under contract for 98% of the Listing Price. If it’s a $100,000 house, that means that an offer of $98,000 is a realistic offer.
- Also, be realistic about seller paid closing costs: Many home buyers in Colorado Springs need assistance with the closing costs; as they may have money for a downpayment but don’t have the extra money saved for the closing costs involved in getting the loan. But buyers need to remember, sellers always want to get the most amount they can for their home. If it’s a $100,000 house, and they offer $98,000 and ask for $4,000 in closing costs, that equates to 94% of the asking price, much different than 98%.
- Know your maximum number: Don’t get caught up in a bidding war if the property has multiple offers on it. Know the maximum amount you are comfortable paying for it. Remember, just because the bank has approved you for $300,000; doesn’t mean that you need to go that high. Know your comfort level with your expected payments.
- Be flexible on your offer terms. Have your agent find out what’s important to the seller. Do they need a quick close? How soon do they want to move?
- Be prepared. Don’t go looking for houses until you have been pre-approved by a lender. You don’t want to find your dream house, then have to wait a couple of days for an appt. with a lender and for the pre-approval letter. It could be too late by the time you do that.
- Know the area. After you start to look at houses in your preferred neighborhood; you’ll start to know the area; and you’ll start to know the pricing. Just because the seller has it priced at $200,000; doesn’t always mean a house is worth at. Ask your Realtor to pull Sold Listings in your preferred area; it’s helpful to see what houses have been selling for, how much in closing costs buyers have been asking for; and what are the typical days on market. Remember, the knowledge you have, the better.
- Connect with the sellers: If you love the house, write a personal letter with the offer. Maybe the home is by the school you want your kids to go to, maybe you love the hiking trails by the house, maybe this is your dream house to retire in, or to raise your family in. A well written personal letter can help get your offer accepted.
- Use a Buyer’s Agent; as an experienced Buyers Agent can help you put together the offer and guide you on pricing.