Make your first offer your best offer
- A competitive offer price.
- Strong earnest money deposit.
- Minimal to no contingencies.
- Flexible move in dates. OR Offer up a post-occupancy.
Writing a strong offer means you have to go in with your best foot forward upfront. In today’s extremely competitive market, you might not get another chance. Even if there are no offers in play when yours is submitted, you must assume that they will be coming. Things can change in nanoseconds.
Although many agents might have told the listing agent they would be submitting an offer, until that listing agent physically has other offers in tow, the answer might be “no.” At 10 a.m., the story may be vastly different than 5 p.m. that day.
How to determine price, terms and closing date
Every property and market is different, so the number of offers on one home versus another might vary depending on price point and available inventory. The highest price is not always a guarantee of a winning offer.
Sellers might accept an all-cash asking price offer over a higher offer that needs financing.
Regarding offers going over the asking price, a common issue with offers subject to financing is the appraisal.
In increasingly heated markets, there’s pressure on buyers to waive appraisal contingencies. Sellers want assurance that if buyers agree to do so, they have proof of funds showing that they can truly pay for any price differences resulting from an appraisal coming in less than the contract sales price.
The closing date can also be a passionate contention point between the buyers and sellers, depending on when the sellers want to close.
Find out what is important to the sellers. Sellers may find appealing additional time to stay in their home past closing. Consider this when crafting an offer! A seller may find desirable the ability to have a post-occupancy agreement below typical rental rates, or even at no cost to them, other than utilities.
Keep it simple
In a competitive market, don’t overcomplicate your offer with umpteen conditions and requests. Make your offer strong, straightforward and easy to understand.
Sellers are looking for certainty, so find ways to give them precisely that. Now is not the time to ask the seller for 10 tradeoffs in exchange for a full-price or over-asking-price offer.