Scenario: Two young kids walk into the bike store. There’s a brand new red street racer on sale for $100. The salesmen approaches and quickly notice that these two young gents are in competition to become the owner of the new bike.
Each boy has a little money saved up but will need help from their respective parents to reach the sales price and become the proud owner.
Tommy is first to make his offer to the salesmen. “I have $50 saved up and I’m pretty sure my mom will lend me the other $50, I have a verbal, meaning she said it shouldn't be a problem”.
Not too shabby the salesmen thinks, Full Price Offer!! Let’s see what Johnny has to say.
“Gosh Mister..." Johnny says, "I’ve only got $20 dollars but I have this note from my dad to your store to allow me to access $75 from his store account and put it towards a new bike...I realize that’s not quite $100, but I can certainly buy the bike today!!"
Tommy’s offer will net the store a higher profit.
Johnny’s offer is less but it’s an instantaneous and sure sale.
As a seller, do you take a risk with Tommy’s mom performing to Tommy’s expectations and in return, secure a larger profit for the store? Ahhh but possibly lose a sale if Tommy’s mom doesn’t come through?
Or...is Johnny’s offer of an immediate sale with the ability to pay today seem more attractive to the store?
In this scenario, Johnny would probably pedal off into the sunset victorious with his new purchase.
However it’s easy to see that if Tommy was just a little more prepared and had given the sellers more confidence in his ability to borrow, I'm sure we'd see that Tommy would easily have been the winner.
What am I trying to say?
The strength of your offer isn’t always the amount offered but many times a superior strength might be in showing the Seller that you’re way ahead of the competition,that the hard part of your loan is already taken care of and closing is nearly inevitable.
In a competitive marketplace such as Denver Colorado, You’re going to want to work with your lender before your competition works with theirs.
Getting a Pre-Approval letter is a great start, but continuing to work with your lender to satisfy conditions to get an actual loan approval is where it’s at. Ask your lender if you can start with a TBD property!
Don’t have a lender?
Google “Best Mortgages Colorado” and start there…
Author:J Steven Opp Phone: 720-556-1717 Dated: February 21st 2016 Views: 596 About J Steven: J Steven is a proud native Coloradoan born and raised here in Denver. His love for this city is refl...
Ion Real Estate is a hand-picked team of highly respectable experienced Realtors coming together to work with you. Please contact us anytime with any questions. We look forward to serving your Colorado real estate needs. Our experience and dedicated professionalism ensures our clients have exceptional representation every step of the way. At a time where bigger isn't always better, Ion Real Estate has chosen to remain a smaller, highly focused team in order to provide a level of personal service, attention and consideration to our clients that you simply won't find elsewhere. Our decades of experience in the unique world of Denver real estate positions us advantageously to handle all of your real estate needs
Finally! A developer is meeting with the town council in Castle Rock t
"Jim Cavoto helped me refinance my home in November 2012. My experience with Jim was great. The interest rate was low, the closing costs were minimal, the loan closed as scheduled, and the process was easy. I will always recommend working with Jim for mortgage financing."