How to Make Your Offer Stand Out?

In a competitive seller’s market, making your offer attractive to the seller can be daunting. If you have your eyes set on a property and are concerned about making an attention-grabbing offer when you anticipate having competition, keep reading for our tips on making your request stand out.

Here is How to Make Your Offer Stand Out

1. Eliminate contingencies whenever possible

Eliminate any contingencies. When a seller can choose between a contingent offer and a non-contingent offer, they will almost always choose one without a contingency because it represents less risk of escrow delays.

This includes offers contingent on selling a current home or seller concessions. Sometimes, it is still wise to make an offer contingent on a home inspection, but all other financial contingencies should be avoided if possible.

2. Avoid requesting personal property as a part of the sale

A seller’s market is not the time to ask for the inclusion of that piece of furniture or appliance you want. Make your offer as simple, clean, and attractive as possible.

3. Consider offering above asking

Low offers are a poor strategy in a seller’s market and will likely waste time. In some cases, even offering $5,000 above asking is enough to convey that you are willing to pay a better price for the property. This communicates a position of financial strength, which makes you a more attractive buyer.

4. Waive the appraisal contingency

Sometimes, you can confidently waive the appraisal contingency to streamline and fastback the process. Appraisal values are at the appraiser’s discretion and can sometimes come back lower than needed to finalize financing. If you are willing to offer cash to cover the difference between the appraised value and purchase price, the seller is likely to choose you over deals that involve a higher level of risk for them.

5. Offer a higher-than-expected earnest money deposit

If possible, offer a higher earnest money deposit than the seller will expect. Money talks. This move will tell the seller that you have the cash required to close on escrow, avoiding potential delays and wasted time for them. If you are up against another potential buyer with less obvious cash reserves, this strategy may make the seller feel more confident in accepting.

6. Add an escalation clause

If you are willing to offer more than your initial offer to outbid other potential buyers, communicate to the seller by requesting that your agent add an escalation clause to the proposal. This strategy indicates to the seller that you are prepared to offer up to $X if a bid for more than your initial offer comes in. Consider it a bit of a trump card, communicating that you are from a place of financial strength.

7. Offer a month of free occupancy

If your timeline is flexible, consider offering the sellers a month of free occupancy after closing. This may not cost you anything, but it is a huge convenience for them. It may be enough to tip the scales in your favor if it makes their transition out of the property significantly easier.

Buying real estate in this seller’s market is challenging but not impossible. I have the team you need to make a strong offer and secure your ideal property, and I am here to help. Contact me any time to find out more about making an offer the seller won’t refuse.