5 Tips to Making a Winning Offer
To be the winning offer on a house, it has to be the most compelling to the seller. Luckily, there are multiple ways to craft an offer the sellers will like the most—and it doesn’t always have to be an all-cash offer. Be sure to bookmark this page to make it easy to find in the future.
This should always be your first step in the home-buying process. Not only does it give you a price range to search in, but it also tells the seller that your offer is genuine and you are serious about buying their house. Most sellers and their agents won’t consider an offer if the buyer isn’t pre-approved.
Lean on your agent
There is a reason you hired a real estate agent to work on your behalf: they are a trained expert in the local market, will negotiate on your behalf, and provide guidance based on your financial situation. Work with an agent who has worked for multiple years in the business. Experience brings knowledge.
Cash is king
Always has been; always will be. The more cash you can put forward—either as a down payment or earnest money—will make your offer look better. If you are one of the roughly one-third of buyers nationally that can buy a home with an all-cash offer, your closing times are quicker because there is no financing contingency, which sellers tend to like.
Negotiating a rent-back or other post-sale occupancy became an effective tool for buyers during the covid-19-induced real estate boom. This can still be a helpful tool as the market corrects to pre-pandemic inventory and days on market. It can give sellers more time to move out or to look for a new home. If your timeline can allow for some flexibility, the sellers may appreciate a little extra time to get their own affairs in order. Conversely, offering a shorter closing window may be beneficial. Closing faster means the seller receives their money more quickly and you get to move in sooner.
Lowball offers get rejected
Since the market has softened from the pandemic buying craze, many buyers think they can give lowball offers to desperate seemingly sellers. However, offering $50,000 below the list price is often seen as an insult and your offer gets thrown out, making any further offers you submit less appealing to the sellers and their agent. If you are going to submit an offer under the listing price, make it reasonable. One rule of thumb is to ask yourself: “If I was the seller, would I accept this offer?”