Q: What Are 6 Ways to Make Your Offer Stronger?
These six tips are your guide to writing a winning offer.
In this competitive real estate market, there are six tips you need to remember if you want to make a winning offer:
1. Make a large earnest money deposit. Earnest money is collateral that you put into title and escrow within 24 hours of your offer being accepted. A large earnest money deposit (e.g., one that’s higher than 1% of the purchase price) tells the seller you’re serious about moving forward with the purchase and that you won’t violate the contract deadlines. After all, you can forfeit your earnest money by not abiding by your contingencies.
2. Show the seller you’re pre-qualified. If you’re paying in cash, provide the seller with proof of funds from your bank. If you’re using financing, provide your lender with the documentation they need so they can then prove to the seller that you’re capable of buying.
3. Schedule a settlement date that works for the seller. It’s not always possible to do this, but if you can, have your agent call the seller and ask them why they’re moving, when they’re moving, and what time they want to be out of the house. By scheduling a favorable closing date without changing your offer price, you’ll position yourself in front of competing buyers.
4. Shorten or waive your contingencies. Fewer properties are available than normal, which means waived appraisals and as-is transactions are becoming more common. However, shortening or waiving your contingencies doesn't come without some risk, so talk to your agent before following up on this tip; you don’t want to put yourself in a position you can’t handle.
5. Write a personal letter. If you’re competing against multiple offers and write a “love letter” to the seller explaining a little about yourself and why you love their home, it will set you apart from the pack. I just had a client that beat eight other offers for a home by doing this. Create a human connection with the seller that they’ll remember!
6. Write your best offer. Writing your highest and best offer doesn’t mean overextending yourself, it means not kicking yourself later knowing you could’ve made a better offer. If your strongest offer doesn’t get accepted, you’ll at least know you couldn’t have gone any higher. If it does get accepted, mission accomplished—you can move forward with your purchase! If you get into a house you love, then there’s nothing to regret.
If you’d like to know more about writing a winning offer or have any other real estate questions, don’t hesitate to reach out to me. I’m happy to help.