You found the home. Now comes the exciting part—putting together an offer that gives you the best possible chance of making it yours! Price certainly matters, but it isn’t the only thing a seller may consider. Financing, timing, contingencies, and other terms can all help an offer stand out. The key is knowing where you can strengthen your position without taking on risks that don’t make sense for you. Here are some of the possibilities worth exploring.
OFFER PRICE
- Start with the market, recent comparable sales, the condition of the property, and the amount of buyer competition. Together, those factors can help you determine what the home may reasonably be worth and how aggressive you want to be. A deliberately low offer intended simply to start a negotiation can sometimes work against you. The seller may counter—or may decide to move on to another buyer.
- If multiple offers are likely, you may have an opportunity to make yours more competitive. Depending on the property and market conditions, offering at or above the list price could make sense. But winning the house shouldn’t mean winning at any cost. Your offer still needs to fit the home’s value, your financial comfort level, and the other terms you choose.
- Seller concessions toward certain buyer closing costs may also be negotiated when appropriate and permitted by the buyer’s loan program. Just remember that the purchase price may need to be supported by an appraisal when one is required, and concessions can affect the seller’s net proceeds. Sometimes the most appealing offer is created by putting several good terms together rather than relying on price alone.
FINANCIAL ABILITY
- If you’re financing the purchase, include the appropriate lender documentation with your offer. A preapproval can generally give a seller greater confidence than a basic prequalification because more of your financial information may have already been reviewed. Terminology and requirements vary by lender, however, and neither one is a final loan approval. Ask your lender exactly what has been verified and what steps remain.
- Earnest money is another way to demonstrate that you intend to follow through with the purchase under the terms of the contract. In some situations, a larger deposit may strengthen an offer, but don’t increase it just for appearances. Understand when the money may be refundable, when it may be at risk, and choose an amount you’re comfortable putting on the line.
OTHER CONSIDERATIONS
- A little flexibility can sometimes make a big difference. If your closing date is flexible, your agent can ask the listing agent what timing works best for the seller. In some transactions, a seller may need additional time in the home after closing. A properly structured post-closing occupancy arrangement may provide a solution, but the responsibilities, costs, insurance considerations, and risks should all be clearly addressed in writing.
- Contingencies can protect you if certain conditions aren’t met, so making an offer more competitive doesn’t automatically mean giving those protections up. Financing, inspection, and appraisal contingencies are common examples, although what makes sense depends on the property, your financing, local practices, and your circumstances. There may be ways to strengthen the timing or structure of an offer without taking on unnecessary risk. The exciting part is finding the combination that gives you a competitive shot while still letting you feel good about the decision.
- Keep requests for personal property in perspective. If something isn’t included in the listing, asking for it may add another point for the seller to consider. If an item truly matters to you, talk with your agent about whether—and how—it should become part of the offer.
- Price isn’t the only lever you can pull. Depending on the transaction, certain closing expenses, timing, or other contractual terms may give you another way to strengthen your offer. The possibilities vary, so look at what each option would cost you and what it might add to the overall appeal of your offer.
- Keep the offer centered on the property and the terms rather than trying to win the seller over with a personal letter. Although buyer letters were once a popular strategy, details about personal or family circumstances can raise fair housing concerns. Your offer has plenty of other ways to make a positive impression.
There’s something exciting about reaching the moment when you’re ready to say, “This is the one.” And when that happens, you want to give yourself a real opportunity to get the home without letting the excitement push you into decisions you may regret. A strong offer brings price, financing, timing, contingencies, and other terms together in a way that works for both the opportunity in front of you and the future you’re working toward.
When you find a home you’re excited about, I’ll help you explore the possibilities for making your offer shine. We’ll look at the market, consider what may matter to the seller, and identify where your offer can be stronger while keeping your priorities front and center. Then I’ll put that strategy to work and negotiate for the outcome you’re hoping for. Finding the right home is a great feeling. Let’s give you every reasonable opportunity to make it yours!