Getting Outbid?Strategies to Make Your Offer Stand Out and Get Accepted. Summer is traditionally a busy time for buyers and sellers. This year has been no exception—and with interest
Craft a Winning Offer
Dated: June 2 2022
Strategies to Make Your Offer Stand Out and Get Accepted.
Summer is traditionally a busy time for buyers and sellers. This year has been no exception—and with interest rates on the rise homebuyers are racing to have their offer accepted over countless others. With multiple buyers competing for properties, even terrific offers are often being outbid.
Fortunately, there are some things you can do to make your offer more attractive to the sellers and increase the chances of getting the property.
• Have Full Pre-Approval – A step beyond pre-qualification, a pre-approval involves submitting your full application to underwriting. Your lender will collect all your financial data and submit for review. This is stronger than a pre-qualification; a pre-approval requires the buyer to provide the proof of their ability to qualify for the loan.
• Increase the Earnest Money – Earnest money is the deposit held in escrow. While the contract will dictate how monies are disbursed in the event of a cancellation, increasing the amount offered can show the seller you’re serious and financially sound.
• Add an Escalation Clause – In a bidding war, it can be difficult to know what to offer because you want to outbid the competition without going too high. An escalation clause is one way to automatically outbid the others. The clause typically offers an amount—$1,000 for example—higher than any verifiable offer up to a specific amount. This can ensure yours is the highest offer.
• Pay an Appraisal Gap – When offering more than asking price, sellers become concerned about the appraisal coming in too low. If you are willing to pay over market value, include the amount of shortage you are willing to pay.
• Pay some or all of Sellers Closing Costs – Just like the buyer, the seller also has closing costs that eat away at their bottom line. This can include deed prep, transfer tax, notary fees, commissions, occupancy permits and others. Offering to take care some or all of their closing fees can add up to thousands of dollars of savings for them and may be what wins you their favor.
While none of these are gaurenteed to work, utilizing them to craft a stellar offer can show your willingness to do whatever it takes to win the house.
Reach out for my insight on how to submit a winning offer!
Hello there and congratulations on starting the journey to your homeownership goals! The first big decision is choosing the right agent.My name is Jenna Kondorsky and I am a real estate agent with Cla....