Colorado Springs is a military town with four Air Force bases and an Army post, which means there’s a lot of moving in and out of the city.
Colorado Springs, CO (PRWEB)
April 28, 2017
April through August are usually the hottest months of the year to buy or sell a home. Although there are more houses on the market in the spring, there are typically more buyers than inventory. “Colorado Springs is a military town with four Air Force bases and an Army post, which means there’s a lot of moving in and out of the city,” said Realtor Shane Ray, founder of the Shane Ray Team and a recent recipient of the distinguished RE/MAX LLC Platinum Club award for 2016.
For buyers and sellers in a competitive low-inventory market, Ray, who has been selling homes in the Colorado Springs area for eleven years, lists the following four tips:
No. 1: Add an escalation clause. When there are multiple offers on the table, it is important for the buyer to consider adding an escalation clause to their contract. In essence, the escalation clause states, “In the event of a competing offer higher than the buyer’s offer, buyer agrees to pay $500 – $1,000 over the highest competing offer’s net, not to exceed a certain maximum purchase price.” “The escalation clause definitely gives the buyer an edge in a competitive market,” added Ray.
No. 2: Add an appraisal clause. Similarly, the buyer ought to consider adding an appraisal clause when submitting an offer on a house. This clause states that if the appraised value is lower than the sales price but at least as high as the list price, the buyer agrees to pay the difference between the appraised value and the sales price in cash. “It will cost the buyer more money out of pocket promising to pay higher than the appraised value of the house, but it will give them a better chance at standing out amongst other offers,” noted Ray.
No. 3: For the seller, timing is key. In a low-inventory market where buyers instantly flock to a new house when it hits the market, it is important for the seller to allow 3-4 days for showings before making a decision on which offer they’d like to select. “This timeframe will give the seller the ability to obtain the best possible offer and have options while staying in-step with the fast-moving market,” said Ray.
No. 4: Start the home search early. “Get pre-approved through a lender and consider location, budget and the type of financing that is best suited for your needs. It could take time to find the perfect house in the right price range on which to place a serious offer,” concluded Ray. “Buyers should spend some time observing what happens when homes that match their criteria hit the market so they can be prepared to act…