MakingAnOffer

How to Write a Winning Offer in a Seller's Market

How to Write a Winning Offer in a Seller's Market

Forget the spin. Take off the rose-colored glasses too. Let's be honest. Most buyers are hoping to score a home at the current real estate market's lower pricing tiers and face fierce competition, creating a process fraught with disappointment.

That's the bad news. But I am by nature a confident guy, a problem solver, and a believer in the philosophy that winners never quit. So here is the good news. A buyer with a savvy agent can write an offer that a seller will find hard to refuse.

Be Ready to Act Fast

Desirable properties often have multiple offers a couple of days after hitting the market. There is no margin of error for indecisiveness or being unprepared to offer a hot property as quickly as possible. That means you should not even consider offering a home if you do not have a preapproval letter from an accredited lender.  

Don't Be Coy

In this market, you can feel reasonably confident that if you have fallen in love with a home, so have other buyers. The occasion calls for an assertive approach, not a timid one. Open with your best offer, which should equal the asking price or higher. Your real estate professional will provide insights based on competitive properties also for sale in the neighborhood and homes that have already sold.

Go Above and Beyond

Let the sellers know your degree of commitment by upping the earnest money to 3% of the sale price. Doing so will instill seller confidence that you will not be likely to walk away from the deal since you have more money at risk. Another enticement is to make the earnest money offer non-refundable should you as the buyer cause the value to fall apart for any reason.

However, let me insert a caveat here. Consider the option carefully and talk it over with your agent and lender. You would need to prepare to forgo other contingencies to make this work.

It Isn't Only About Money....