With the current real estate market that we are living in, it requires tactful skill and strategy to get your offer accepted. No one tip is applicable to every offer situation, but the more you strategize based on the seller’s preferences, the better your chances are of an acceptance.

Here are four things to consider when making an offer.

1) Make your offer as clean as possible

A clean offer means that you as a buyer are potentially waiving contingencies in order to make your offer more appealing to the seller, and more competitive to other offers. A clean offer could mean waiving contingencies such as an inspection contingency, mortgage contingency or home sale contingency. Additionally, you don’t want to have any seller concessions, also known as things that a buyer asks for outside of the price of an offer, such as asking a seller to pay for your closing costs. When a seller is in a multiple bid situation, a clean offer can help you automatically get ahead of other offers who have contingencies.

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2) Offer above asking price

In a seller’s market, if you’re making low offers and hoping someone will accept, you will most likely not get your offer accepted. Price is always the first thing you will want to go above and beyond with, enough to make your offer strong enough to beat other offers in a multiple bid situation. If you want the house, you might need to pay above the asking price for it while still keeping your offer aligned to the home’s value. It is important to note that you don’t always need to pay above asking price and it is critically important that you have a knowledgeable real estate professional pull market comparables to validate the offer price. This will help you secure the home you’re interested in while showing the seller that you’re a serious buyer.

3) Consider putting down a larger earnest money deposit

Earnest money deposit is essentially proof that you are a good-faith, serious buyer. Typically, the broker will hold onto your deposit and it will be put away into an escrow account. This deposit can later contribute to your closing costs or down payment. On average, the initial deposit put down in the local market is $1,000 with the remaining 5% due at the signing of the purchase and sale agreement. Increasing the deposit amount put down at the time of the offer, up to 5%, can show the seller you are a serious buyer and separate you from the competition.

Be careful with this, as you should be sure that you intend to buy the home if you put more money down, because if you don’t end up moving forward your deposit may be in jeopardy. If you’ve already signed the contract and don’t follow through with the purchase of the home, the seller could potentially keep your deposit.

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Looking for more general tips about home ownership? Explore these other resources from our blog.

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 4) Make A Larger Down Payment on Your Home Loan

In a multiple bid situation with other offers who have not waived their mortgage, by offering to pay a larger down payment  is another way of showing that you have good intentions to your seller. By doing this you are essentially showcasing that you’re in a good financial position which is attractive to sellers. All in all, by putting down a larger payment in your loan program, you are sending the message that you’re a good faith buyer and capable of meeting all financial obligations.

What’s the Bottom Line?

The bottom line is that you want your offer to stand out among others to show the seller that you will make the sale of their home as easy as possible. These are only a few of the ways in which you can make your offer more attractive in a competitive market. However, every situation is different and it is important you have a knowledgeable real estate professional guiding you in order to make sure you aren’t overpaying or leaving yourself exposed to potential liabilities that are outside of your control or level of risk tolerance.

Looking to buy your dream home? We can help. Email sven@andersengrouprealty.com or call our team at 781-729-2329.