How to Win a Bidding War in the Denver Housing Market

Written by Posted On Thursday, 08 September 2016 18:56

Trying to buy a Denver home these days can be brutally competitive, especially if you’re looking at homes priced under $400,000. Even though the supply of houses is increasing, demand is still high, and you may find yourself in a bidding war, with multiple offers pushing prices ever higher. So how do you emerge the winner in a bidding battle? Learn these strategies for winning your next bidding war so you come out on top.

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  • Offer full asking price or more so the seller knows you are serious. This is not the time to lowball, not with the low amount of listings out there. Nothing turns a seller off more than someone undervaluing their prized possession.
  • Put an escalation clause in your offer. This is an amount of money the buyer agrees to increase his/her offer, if there are other bids. So let's say the purchase price of the home is $400,000, but you expect it could go as high as $450,000. Put in an escalation clause saying you are willing to go as high as $460,000 (if you are). Make sure, however, that the clause also says the seller can only take the winning bid up to a level just above competing offers. In other words, if your competitors only go as high as $430,000, the seller can't expect you to pay $460,000, only, say, $431,000.
  • Eliminate seller paid closing costs/points. It is not a full price offer if you ask the seller to pay your closing costs. If you need to get closing costs covered, make sure your offer Nets the seller at least what a full price offer would.
  • Large earnest money up front. Show the seller you are committed and putting up risk to stand by your “word” (purchase agreement) to buy the home.
  • Cash is King. Go in with a cash offer if possible to eliminate problems of appraisals and financing. Appraisals can be a problem as prices are increasing. New regulations make it difficult for appraisers and banks to meet the market changes.
  • Closing date should match seller's preferred date. Buyer’s agent should try to find out what date the seller would like to close on.
  • Allow the seller a couple of extra days possession after the closing. This gives them additional time to move out and lowers their stress.
  • If the buyer is obtaining financing, include a statement that the buyer will make up the price difference in cash, up to a preset amount, if the home doesn't appraise for the purchase price. This will also relieve the concern of an appraisal problem.
  • If the buyer is doing an inspection, have the buyer provide a statement that they will not try to re-negotiate price on any small items, but only structural or mechanical failures. Inspections were intended to be a way for the buyer to make sure they were not purchasing a major problem. Too often now this is being used as a way to re-negotiate the price with the seller. Remove this potential concern for the seller.
  • Get preapproved for a loan. Now. Today's mortgage market is still relatively tight, and home sellers are leery of loans that might not be set in stone. If you can, bring cash to the table.   Submit a well-prepared Pre-Approval letter from the lender with your offer. Make sure it does not come across as a preliminary pre-qualification letter.
  • Show the love! If you love, love the house, then let the seller know that, either directly or through your real estate agent. Don't be afraid to write a letter, with a picture of your family and be specific about why you love the house.
  • Last but not least, be smart, not sappy. Buying a home is one of the most emotional things you will ever do. Don't let your emotions steal your wallet. Don't overpay because you get all wrapped up in the heat of the competition. It doesn’t matter what house you're looking at, it's not the only house you can ever be happy in.

Let the Bandy Team guide you through all phases of the home buying and home selling process in Denver whether you’re searching for a home in the Lowry area of Denver, real estate in Cherry Creek, or any of the other fine communities surrounding Denver We are here to help you find your dream home. We will be there to help you every step of the way!

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Until next time,

Marianne Bandy, Team Leader

The Bandy Team

 Keller Williams Park Meadows - Denver Real Estate & Homes  


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Marianne Bandy

Marianne is a professional LDS Realtor in Denver with outstanding integrity, who takes the time to understand your specific housing and family needs. She is the team leader of one of the top selling Real Estate Teams in her broker's office. She understands that a big part of your family's happiness depends on the home and community where you live.  LDS Realtor in Denver Colorado

One of Marianne’s greatest passions is helping people with their Real Estate transactions, typically one of the largest financial transactions they will undertake. Marianne is the listing agent for the team but also loves working with Latter Day Saint home buyers as well.  Marianne uses her expertise and market knowledge so that her clients get the most accurate and up to date information possible. Marianne has a breadth of experience working with clients through all aspects of closing on a home. When listing homes for sale, this includes readying the home for sale, developing a marketing strategy, getting feedback on showings, negotiating inspection items,  and many other details that lead up to a successful closing. 

Marianne is excellent at contract negotiations and looking out for the best interests of her clients. She has obtained the Certified Negotiation Expert (CNE) certification. When helping Buyers, she loves the feeling of helping families connect with the right home in the right community. She also has knowledge of ward and stake boundaries, meeting house locations,  youth programs, drive time to the LDS Denver temple, and seminary locations for your high school children. 

If you’re looking for solid results and a WOW! experience, then call Marianne and put her to work for you. In the last two years, the Bandy Team sold 125 homes.  The Bandy Team has the experience and proven systems you need to make your transaction as smooth and worry-free as possible. 

The Bandy Team is committed to conducting business with the utmost integrity. The team was formed on the principles of honesty and loyalty with clients. Marianne believes in surrounding herself with good people that share her values.  This includes good business partners that can aid in all aspects of a real estate transaction, including home inspections, loans, transaction coordination, home repairs, etc. Marianne and her entire team are committed to the highest levels of customer service for their clients. 

Who you work with Matters!  

LDS Real Estate Agent in Denver Colorado

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