In today’s market, competing with several other buyers for your dream home has become the norm. When you find that perfect house, with the breathtaking view and the doggy door for your fur baby, losing it because your offer wasn't differentiated from the rest is crushing. Crafting a well-written offer with your agent can give you a strategic advantage. Every situation is unique, but here are five proven ways to set your offer apart.
1. Provide a Pre-Approval
Getting pre-approved for a mortgage is step number one. Not only does it show that you didn’t just waltz up, see the for sale sign, and fall in love (we've all been there!), but it demonstrates to the seller that they can be reasonably certain you'll be able to follow through on financing. Getting to the closing table is everyone's priority, so supplying a pre-approval letter with your offer is always best practice.
TIP: If you aren't using financing, including proof of funds with your offer serves the same purpose.
2. Increase Your Earnest Money Deposit
Including a sizable earnest money deposit shows the seller that you are committed to your offer. Since you would forfeit the earnest money if you backed out of the contract for an unallowable reason (you wouldn't; we know!), the seller can clearly see how much value you place on keeping the contract. The more you offer in earnest money, the more serious you seller will take your offer.
3. Waive or Modify Contingencies
Presenting a clean offer can be the difference between having a winning bid and continuing the home search. While most would choose not to have two mortgages, waiving the contingency to sell your home before buying the new one (especially if your home is already under contract) is often a good way to push your offer to the top of the list. Similarly, buyers have elected to waive inspection contingencies or appraisals. While each of these options have pros and cons, evaluating whether there are contingencies that can be waived, based on your personal situation, is a good place to start.
TIP: Shortening the time frame on the contingencies, instead of waiving them, can have a similar effect. If you typically have 10 days to perform inspections and submit repair requests, shorten the window to 7 days.
4. Go All In
When multiple offers are involved, start with your best offer. Since sellers often don't need (or want) to negotiate with multiple offers in hand, expect them to assume what you submitted is the very best offer you have. If you are willing to pay above asking price, start with that number from the first offer because you only have one shot. Similarly, asking for closing costs or a home warranty may be options you are willing to pay for yourself to make your offer more attractive.
5. Love Letters
Tell the seller what it is you love about their home. Chances are, they love the home, too, and want it to be cherished by the next owners. Did something about the home capture you the first time you saw it? Do you envision hosting family Christmas' by the fireplace? Whatever reason you decided this home was your must-have, pour it out on paper! As an agent for both buyers and sellers, I have successfully used this strategy to secure home sales. When the letter is honest and engaging, the sellers are more likely to relate to you and your offer.
If you are looking for for more ways to make your offer stand out from the rest, don't hesitate to reach out! I'm happy to help you strategize as we look for your perfect home.