Buying In A Sellers Market

Dated: 05/07/2015

Views: 942

Despite the gloomy rain, Denver's housing market is bright.

The historically low inventory, demand for jobs and housing is still driving seller market conditions throughout the Denver Metro area. The housing forecast is to projected to continue to shine hot on housing throughout the year.

So what do buyers need to do to prepare to weather this seller's market?

Experienced Lender

Your first step in preparation to buy a home is to work with a seasoned mortgage lender to get your financial house in order. Ask your lender to have your loan file pre-underwritten. Do not just get a pre-qual letter. This will ensure when the listing agent is reviewing offers and calls your mortgage lender, your lender can say with confidence that your file has already been underwritten.

Seller Protection

Reviewing your finances also prepares you to look at your cash reserves and help you to decide if you are in a position to pay for "seller protection". This is the term for when the homebuyer contractually agrees to pay the difference between the appraised value of a home, the appraiser's market value the mortgage lender is lending on, versus the contract price. This protects the seller, ensuring the seller is able to sell the home at the agreed price even if the appraised value does not match the purchase price.

Waive Inspection

It is not uncommon for sellers to also ask for the inspection deadline in the contract to be waived. However, buyers should always, always get a home inspection so a professional home inspector can show you what items in the home are major health and safety concerns that must be addressed right away, as well as prioritize the needs improvement areas of a home.


It sounds like a four letter word to buyers who have been racing from house to house to pick one they want to actually write an offer on in this market. But finding the just right house requires a bit of fortitude, good timing and patience. Buying the right house right now requires a great mortgage lender, creativity and cash. Cash for your earnest money, down payment, inspection, appraisal, closing and title fees.


Plan for the best. With a little bit of proactive planning, a team of professionals and setting realistic expectations you will be prepared to buy when you find your bright new (to you) shiny new home!

Donna Hickey Hansen

As a Realtor and real estate investor, I love finding first time home buyers, move-up buyers and investors great deals! My background in the wholesale mortgage industry allows me to demystify the mort....

1 comments in this topic

  • Posted by David Hansen
    I agree. The "seller protection" is a huge part of the puzzle. Buyers are willing to pay in the neighborhood of 10% over the appraisal price. Therefore buyers must really have a good savings or be able to get gift funds from a family member. The more cash you have saved the stronger your position.

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