Making an Offer and Going Under Contract

Navigating Colorado’s Home Buying Process from Offer to Acceptance

Making an offer on a Denver area home is one of the most exciting and nerve-wracking parts of the buying process. Understanding how offers work in Colorado and what happens when you go “under contract” helps you approach this crucial step with confidence and strategic thinking.

Understanding Colorado’s “Under Contract” Process

In Colorado, when your offer is accepted, we say the property has gone “under contract.” Going under contract marks the beginning of your due diligence period, not the end of the buying process.

Once under contract, you typically have about 30 days until closing, during which you’ll complete inspections, finalize financing, and handle all the details that transform your accepted offer into actual homeownership. This period protects both buyers and sellers while ensuring all conditions are met before the final sale.

Strategic Offer Preparation

Before we write your offer, we talk to you about what you want to offer and conduct comprehensive market analysis to position you competitively while protecting your interests.

Market Analysis and Pricing Strategy

We review recent comparable sales, current market conditions, and property-specific factors to determine the optimal offer price. This analysis considers:

• Recent sales of similar properties in the neighborhood.
• Current competition from other active listings.
• Time on market and any price reductions indicating seller motivation.
• Property condition and any obvious repair or update needs.
• Market trends affecting buyer versus seller negotiating power.

Competitive Positioning Assessment

In Denver’s competitive market, we help you structure offers that stand out while maintaining necessary protections. This involves balancing:

• Attractive pricing that gets seller attention.
• Reasonable contingencies that protect your interests.
• Flexible terms that accommodate seller preferences when possible.
• Strong financial presentation that demonstrates your capability.

Essential Components of Your Offer

Every offer we prepare includes carefully crafted terms designed to protect you while appealing to sellers.

Financial Terms and Documentation

Purchase Price: Based on our market analysis and your budget parameters, balanced with competitive considerations.

Earnest Money Deposit: Typically 1-3% of purchase price, demonstrating your serious intent while protecting your funds during the contract period.

Financing Details: Clear specification of loan type, down payment amount, and financing timeline.

Pre-Approval Documentation: Your lender’s pre-approval letter showing qualified borrowing capacity, or proof of funds for cash purchases.

Protective Contingencies

Inspection Contingency: Typically 7-10 days in Colorado, allowing you to thoroughly evaluate the property’s condition and negotiate repairs or credits.

Appraisal Contingency: Protects you if the property doesn’t appraise for the contracted price, giving you negotiation rights or contract termination options.

Financing Contingencies: Ensures you can terminate the contract if you don’t like the terms of your loan or can’t obtain a loan.

Title Contingency: Protects against title defects or liens that could affect your ownership.

Timeline and Possession Details

Closing Date: Coordinated with your lender’s timeline and your moving needs.

Possession Terms: When you’ll actually receive keys and move into the property.

Important Deadlines: All contingency periods and required actions clearly specified.

Our Comprehensive Offer Process

Detailed Contract Review and Strategy Session

We prepare your complete offer package tailored specifically to your situation and the property you’re pursuing. Before submission, we conduct a thorough review covering:

• Every contract term and contingency explained in plain language.
• Your rights and obligations under Colorado real estate law.
• Timeline expectations and critical deadlines you’ll need to meet.
• Potential scenarios and how we’ll handle various seller responses.
• Strategic considerations specific to this property and market conditions.

This detailed review ensures you understand exactly what you’re agreeing to and feel confident about your offer strategy.

Professional Offer Submission

Once you approve the final offer terms, we handle the complete submission process:

Complete Package Assembly: Your offer, pre-approval letter or proof of funds, and any supporting documentation that strengthens your position.

Direct Agent Communication: We submit your offer directly to the listing agent with strategic positioning about your strengths as a buyer.

Lender Follow-Up: Your mortgage lender contacts the listing agent to reinforce your financial qualifications and loan approval likelihood—this personal touch often makes the difference in competitive situations.

Timeline Management: We track response deadlines and keep you informed throughout the process.

Understanding Seller Response Scenarios

We’ll give the seller a deadline to respond to our offer, typically within 24-48 hours, though this can vary based on market conditions and specific circumstances.

Offer Acceptance – You’re Under Contract!

When sellers accept your offer as written, congratulations—you’ve successfully gone under contract! This triggers several immediate actions:

• Earnest money deposit due within specified timeframe (typically one to three days).
• Inspection period begins immediately.
• Loan application finalization with your lender.
• Title company coordination for closing preparation.

Counteroffer Negotiations

Sellers may counter your offer with different terms regarding price, closing date, contingencies, or other conditions. We’ll review their counteroffer thoroughly and advise you on:

• Market reasonableness of their requested changes.
• Strategic response options to keep negotiations moving forward.
• Alternative terms that might satisfy both parties.
• Decision timeline for your response.

Counteroffers can go back and forth several times before reaching agreement, and we’ll guide you through each round strategically.

Multiple Offer Situations

In competitive Denver markets, properties may receive multiple offers simultaneously. Our strategies for these situations include:

• Escalation clauses that automatically increase your offer up to a specified maximum.
• Favorable terms beyond just price that appeal to sellers.
• Quick response timing to demonstrate serious interest.
• Flexible contingencies that reduce seller risk while protecting you.

Offer Rejection

If sellers reject your offer outright, we’ll help you assess whether to submit a revised offer or move on to other properties. Sometimes rejection indicates unrealistic seller expectations that may change with time and market feedback.

Working with The Principal Team Through Your Contract

Our “More Service. Lower Fees.” approach includes comprehensive support throughout the entire contract period, not just offer writing and submission.

Expert Negotiation: We handle all communications and negotiations with sellers and listing agents to protect your interests while maintaining positive relationships.

Professional Coordination: We manage relationships with lenders, inspectors, title companies, and other service providers to ensure smooth processing.

Strategic Problem-Solving: When issues arise—and they often do—we provide creative solutions that keep your transaction moving toward successful closing.

Transparent Communication: You’ll always know what’s happening, what’s expected of you, and what we’re handling on your behalf.

Ready to Make Your Winning Offer?

Making competitive offers and successfully navigating Colorado’s under-contract process requires market knowledge, strategic thinking, and experienced representation. Our proven approach helps Denver area buyers win their chosen homes while maintaining important protections throughout the process.

Ready to start making offers on Denver area homes? Contact David Lampe and Tom Grant at The Principal Team to discuss your offer strategy and begin the exciting process of securing your perfect home.

Your dream home is within reach—let us help you make the winning offer that gets you the keys.