Denver Real Estate 101Please join us for an informative workshop on Wednesday, September 27th, 2017 from 6PM - 7:30PM at the Ion Real Estate office. Ericka York of the Fairway Independent Mortgage
Compete With Confidence
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…
J Steven is a proud native Coloradoan born and raised here in Denver. His love for this city is reflected with his Denver history page on Facebook “Old Images of Denver”. Steve serving in the Colo....
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