How to Prepare so That You Don’t Lose Out on Your Dream Home in a Seller’s Market
Whether you’re looking for a second home or perhaps you’re a first time buyer, there are some factors to keep in mind so you get what you want, when you want, and for how much you want to pay.
Median Days in Summit and Park Counties
Days to sell have significantly decreased from last year to this, so it is even more important that you do some work before you make that offer. Because when you do, you want to present the most competitive offer to the Seller, so that the Seller selects your bid when they have multiple ones to consider.
The Gongloff Group coaches our clients through the buying process and addresses the following key areas as it relates to each person’s unique situation.
Important Home Buying Preparation
Money. The most important work that you can do before starting your search and making an offer, is determining how much money you can and want to invest. Contacting a lender is step #1.
If you want the easiest and least costly loan process, you should consider a local lender. Many out of county lenders do not have the ability to lend in resort areas and aren’t aware of it until trying to obtain one for you.
Also, local lenders know the lending ratios required for specific neighborhoods in our County, the effects of condotels and time share variables… it is worth your time and money to consider applying locally.
After we know what you want your loan to look like, we can refer you to the appropriate lenders who supply different types of loan products for your needs.
- Have a lender ready to provide a pre-approval letter with any offer you will be making – even on weekends.
- Acquire a Loan Estimate sheet from your lender immediately after they prequalify you; this will tell you how much money you will need at closing and what to expect for your monthly payment.
- Expect a 45-60 day closing timeframe after you go under contract. New lending laws have slowed up the closing process.
Put in a request with your current insurance company to obtain an Insurance Quote based on the purchase price for which you are approved. This number is just an estimate and will likely change based on your proximity to creeks, lakes and trees, but it is a good idea to get started on insurance early.
Searching for Your Home
Hire a Buyer’s Agent. You should always have a real estate Agent that is negotiating in your best interests and not working for the Seller.
Choose your Agent wisely. One who knows the local market, works full time for you, understands what you’re looking for and actively seeks to find it. And, of course, hire someone you trust and will take advice from.
Figure out what you want. You have so many options: rooms? Square feet? Lot size? ski in/ski out? On the lake? Types of views? Golf? and so much more. We’ve created a Buyer’s Needs and Wants Survey.
Finding what you want. We set up an MLS direct search that notifies you directly, so that we’re all notified when the perfect home comes on the market.
But what if you can’t find the home that you want?
You have hired us to find your new home and we’ll be having periodic conversations to make sure (1) your needs haven’t changed, and (2) that prices haven’t increased to such an extent as to price you out of the market in which you’re shopping.
We’ll be investigating old listings, for sale by owners, in-house pocket listings, and all relevant MLS listings, and if necessary, knocking on doors and sending mailers to homes that meet your criteria.
Understanding the Market. What if prices climb upwards and you find that what you are looking for doesn’t exist in the price range for which you’ve been approved?
This can happen in an appreciating market, like Summit and Park Counties (see Market Report). You can either adjust what you are looking for or bring more money to closing. In either event, let us know so that we can rewrite the searches based on your new requirements. As long as we are working together, we will be able to find the home you want.
You’ve Found the Home of Your Dreams, so Now What?
Make an offer and make it quickly. In a Seller’s market like we have today, every moment that you wait will result in competing with another offer from another buyer or worse losing out on the opportunity to make an offer at all. Make sure that you have prepared to make an offer with us… we have prepared a system to make sure that our offer is the best it can possibly be for you. This preparation is necessary to get the home that you want.
The relationship you have with us becomes critical at this point because you will need to rely on us to provide the following for you:
- Photographs and video
- An accurate Market Analysis of value so that we don’t over pay for your investment
- HOA details
- Utility cost details
- Potentials financing challenges specific to the subdivision
- Pertinent information regarding the rent-ability for your future resale.
Under Contract to Closing
As your Buyer’s Agent, we have protected your interests in the contract with multiple contingencies including items like Loan, Inspection, Insurance and Survey.
We will help you arrange for all of the contingencies by providing you a list of local vendors and subcontractors as well as scheduling their work inside our contract deadlines to protect your earnest money.
Congratulations! You own a home in the mountains. We are still here to help you. We have a revolving list of property managers, subcontractors, local services and other resource recommendations to help you while you own here.
We will help make owning your mountain home less stressful and can also be of service to avoid mountain specific challenges that can be avoided by acting proactively like ice dams and pine beetle damage.
For more information about buying your dream home, please contact us here or call/text us at 970.668.0880 or email Jeannette@gongloff.com.