Here’s a step-by-step guide to writing your best offer in this market.

Want to get your offer accepted in this competitive real estate market? I’ve seen similar markets back in 2005 and 2006, so I know the six tips buyers need to follow:

1. Make an above-average earnest money deposit. The earnest money deposit is usually about 1% of the purchase price. If you’re looking at buying a $500,000 house, that would ordinarily mean a $5,000 deposit, but if you can increase yours to $10,000, that’s a great way to stand out to the seller in this market. 

“If you make your best offer first, you have a much better chance of the seller accepting it.”

2. Get a pre-approval (or conditional loan approval). A pre-approval is a much stronger document to bring to the table than a pre-qualification. A pre-qualification is simply when you get your credit pulled and have a lender look at your income. A pre-approval means you’re approved to buy a home, subject to appraisal. 

3. Be flexible with the close of escrow. If the seller wants a longer close of escrow or leaseback arrangement, be open to those options.  

4. Remove contingencies. For example, you can remove the appraisal, financing, or inspection contingency. Granted, if you remove these contingencies and don’t close, you’ll lose your earnest money deposit. However, if you’re buying a new home, the inspection contingency probably isn’t a big deal for you (although I still recommend scheduling one). If you have a loan approval, the financing contingency probably isn’t a big deal either. 

5. Write a personal letter to the seller. This letter will detail why you want the home and why it’s perfect for your family. 

6. Write your highest and best offer upfront. Don’t make a low initial offer or enter into a bidding war if you can help it. If you make your best offer first, you will have a much better chance of the seller accepting it. You could also include an escalation clause in your offer, but that still increases the chance you’ll get sucked into a bidding war. 

If you’d like more tips on getting your offer accepted or have any real estate questions at all, don’t hesitate to give me a call 602-738-9943. I’d love to speak with you. Remember, make it a great day!