This is a very frustrating market for buyers. We all got very used to the days when buyers could come in with lower offers, expect sellers to pay for their closing costs, throw in a home warranty and do almost everything we wanted on an inspection objection.
The days of the buyer's market however, are now long gone.
To avoid that rejection in the future it will be important to come in strong with your first offer, not expecting to have the time to test the waters and see how low a seller will go. Now a days a low offer will only upset a seller who is probably very aware of how low the current inventory is. Try to view things from the seller's perspective the next time you have your agent draft an offer.
There are many things you can also do in addition to writing a at list price or close to it offer. One is have your lender collect your financials and pull your credit so you are really solidly qualified for your loan - and then have your lender call the listing agent and talk to them in person about how qualified you are after you submit an offer! This has worked wonders for many of my buyers to instill confidence in our bid over other multiple offers.
Another thing you can do is make your offer very very clean. Your agent will be able to advise you on how to do this as there are 16 pages of the contract and multiple areas to appeal to the seller - or not. Also - your agent may be able to download all the disclosures from the mls - and have you sign everything and submit an entire package with your offer - inclusive of the earnest money check copy and the lender's preapproval letter and CTB and disclosures. Usually that comes across as a very competently presented offer.
These are just a few ideas for you next time and I hope you have success - don't give up! It takes several attempts right now to land the house you want and your getting more experienced each time to understand the market and the seller's perspectives right now.
Owner / Broker
For others ... Don't be discouraged if your offer didn't bring a response, or someone else came along and snatched that home.
Buying wasn't even cut and dry back then. Now, buying has become quite a bit tougher.
It still can be done.
Tips for buying in a seller's market:
1) Make a strong offer. When an agent indicates there are already offers on the table, you can use that small bit of information. You don't know where everyone else is on their offer, so ante up something that's close to or right on the offering price.
2) No long lists of contingencies. The competition is selling their home first, renting and then making an offer. It's a big hassle to move and then move again. I've done it. You live and best of all you get to begin enjoying a great home when it's all said and done.
3) Hire a Realtor. Sellers should consider using a Realtor to list their home for one very good reason: the MLS. A discount agency might offer you a great deal on their commission, but I bet they don't use social media and the same amount of marketing power. I have an individual working on my social media. It's a huge commitment. In my business, few can claim the same. Buyers may want the freedom of moving around on their own. But buyers will save a lot of time working with an agent who will set up times in advance for tours. Another thing: Buyers don't pay a commission.
4) Use services like Trulia and Zillow, but be forewarned: These are free services. How much can you expect for free?
5) Time. Budget your time wisely. When should you start shopping for a home? Some buyers take their time and begin early. Others may way not begin until the buying season has started in earnest. In California, there is no down time. Buying season can run from one year into the next. So, feel lucky you are in Colorado. It helps the Realtor, if you start early. There is urgency, but that does not mean that everything is about gone. There are homes coming on the market all the time.
6) It is a great experience to fall in love with a home. And, it can be a great disappointment if you learn you can't afford it. If you suspect your credit score may have been neglected, you might use one of the several services like Transunion to make an inquire. It costs nothing. There are a few things you can do to keep your score high. You will want to go to FB and Like my page.
7) Speak to a Realtor. The Realtor will ask you for a pre-qualification letter from a lender. All you have to do is call a lender and fill out a form and ask for the letter. This helps the Realtor help you quickly size up what is available. The Realtor may have you select from 10 possibilities that fit your criteria. A good fit can be a home with a good school and shopping nearby. You may want particular amenities and a walkable neighborhood. Talk about all of this.
At the end of this process, you will feel like your Realtor is an old friend. We love to help people.
Now that the market is picking up and changing from a buyer's market to a seller's market - it is crucial that your agent communicate with the selling agent ahead of time to make sure an offer will be in the ball park to not be rejected - thus wasting valuable time you as the buyer have to get something worked out before another offer comes in. Since, after another offer is on the table, your chances of negotiating are greatly reduced. It is also important to have very tight time frames for the response deadlines.
Highlands Ranch Mortgage Broker
Just because they have another offer doesn't mean they will accept it, but you also risk loosing the house.
You need to weigh that against your desire for it and decide if it is better to give them your 'best' offer or tell them you will wait for them to deal with these other buyers and if it doesn't work out you may come back to the table. You would be in a better bargaining position then, if the house is still there.