04/22/2022
Following my previous post about tips on real estate in Denver, I thought about a few more that I wanted to share with you. The tips are not putting your best offer first, “Escalation clause,” and finally trying agreeing and compromising on timelines with the seller.
You have very little negotiating power in a seller’s market. If a seller doesn’t like your bid, they won’t have to wait very long for another buyer to come along. Not only could you lose out to another bid if you do this, but you could risk offending the seller. If you offend the seller and you end up in a bidding war with another buyer, the seller will be more willing to accept the other buyer’s bid even if your offer ends up being slightly better in the end.
An escalation clause gives a change against competing offers right away. Essentially, it’s an initial bid, you’re willing to increase your offer if you have to. You then can name the increments you’re increasing by, then maximum amount.
Some buyers may be looking to move in right away; if you know that the seller needs you can offer a flexible date. By agreeing to terms that are more beneficial to the seller, you may convince them to accept your bid, even if it’s slightly below the highest offer they’ve received.
