Tips for Writing a Winning Offer in Our Present Market

It’s easy to see that this is still a difficult housing market for homebuyers.  With higher interest rates, and inventory still lower than it was pre-pandemic, buyers still don’t have as many options as they once did. Yes, there are some properties that are sitting a little bit longer where deals can be found. And even though bidding wars aren’t as crazy as they were in recent months, turn-key, competitively priced homes are still receiving multiple offers. With many buyers still vying for the same property, it’s important to write the best offer right up front. Here are a few tips to help you write a strong offer:

1. Show Financial Strength – You already know that you need a pre-approval letter to place a serious offer, but why not ask your lender to include an explanation of how they qualified you, or have your lender reach out to the listing agent and let them know just how qualified you are. Another option is to go one step further, and get a fully underwritten pre-approval.

2. Include a Proof of Funds Letter – Providing a letter which indicates that you have more than enough funds needed for the transaction can help your offer look solid.

3. Larger Deposit – Earnest money, also known as a “good faith deposit,”  is deposited into escrow and is applied to the buyer’s closing costs in the end. If you are serious about the home, offer a larger deposit that shows you have “skin in the game.”

4. Limit Contingencies – Real estate contracts have a lot of standard contingencies. Remember, contingencies are negotiating tools that give you the opportunity to simply walk away from the deal. They’re great protection for the buyer, but having too many contingencies will feel risky to the seller. Working with your agent, have them discuss each contingency in detail and remove any that aren’t absolutely necessary for you. Sellers are generally looking for the “cleanest” offers (aka least amount of hurdles).

5. Be Flexible – Keep it simple. Offer a flexible closing date or better yet, have your agent find out what the seller’s preferred closing date is. If they need more time, be open to the possibility of a lease back option, which may be appealing to the seller.

6. Present a Well Rounded Offer– The highest offer doesn’t always win (with the exception of cash)! There are multiple ways to make your offer more appealing than just being the highest offer on the table. Make sure you’re working with an agent who understands different strategies to get your offer in the running.

Remember that even in this real estate market, buyers are still finding new homes. With a good game plan, and a bit of patience, you can find the right home for you and your needs.