30 Ways to Write a Winning Offer on a House (2022)
We have all been there (or hopefully will be there one day)… You fall in love with a house from the second you see it and you just know it’s home. But shortly after this fear rushes up your spine, and you start freaking out. You love this house so wouldn’t others? How do you make sure you put in the best offer? How do you even write up an offer? AHHH… Well, this article is for you my friend. Here we are going to break down 30 top ways to make your offer stand out!
Let’s Dive In!
30 Top Tips
Your agent should call the listing agent and see when and where the seller’s would like to close.
Your Mortgage loan officer should write a specific lending pre-approval for the specific property and also have them contact the listing agent directly (via email or phone) to relay your pre-approval strength. (especially if not going conventional).
Use a local lender rather then a big bank (they are more reputable in the industry and cheaper most times). If you use a big bank have them communicate what all they looked at to pre-approve you in the pre-approval letter.
Use an agent who knows the local market and can make sure you offer a good price (sometimes that’s about or below listing price). Also, have them see if the listing agent would accept escalation clauses.
Put down 10-20% for the down-payment and have your lender convey this strongly in your pre-approval.
Put down more in earnest money…Normally it’s 1% of purchase price but, you can do more to show how serious you are about buying (but, don’t go crazy high 3% max)
Make half or 1,000 of your earnest money non-refundable. So, if for any reason you drop out of contract the sellers can keep the nonrefundable amount regardless. But, if you do close like normal it will still ALL come off your closing cost.
Have a clause that you will submit your earnest money within 24 hours or under 3 business days to show your serious and capable.
Speak with your lender on if you need to have an appraisal done. If not write that you wave the appraisal in the offer.
If you need an appraisal, have your lender put in the pre-approval or communicate with the listing agent that it will be ordered asap rather than the standard 2 weeks later.
If you are waving the appraisal show the proof of funds for this with your offer.
If you have the funds (whether cash or HELOC) offer an appraisal contingency gap. Speak with your realtor on if this would likely be needed or not and to what amount.
For the inspection period (normally 15 days) drop it to 7 or 5. Just double check with your inspector to see how fast they can get out to the property (I normally get my clients scheduled within a day or two).
Specify in the contract that the inspection is for informational purposes only and seller has a “right to cure” any defects found.
Specify a specific amount for the repairs. EX “No repairs to be made unless totaling over $xxxx.” (you can add this to the above tip as well).
See if you are going to do a Termite, Mold, Radon, Septic, Lead Paint, etc. inspection. If not, write that you will not have these done.
Do not ask the seller to pay for a home warranty. In a seller’s market this is a rare ask for properties priced and marketed correctly.
Don’t ask the seller’s to cover any other fees… Like any of your specific closing cost.
Don’t make your offer contingent on things like the review of surveys or deed restrictions. This should be done by your agent prior to writing an offer.
If the property is a FSBO that your writing an offer on have it hand delivered. Showing how serious you are and to answer any questions they may have… Not to mention most will sign then and there! (you and your agent or just your agent should do this).
Offer to cover seller’s property taxes at closing (Use this only in really competitive situations as it’s not needed most of the time).
Offer to cover a portion of the seller’s closing cost. (you can say you’ll give x amount or note the specific cost).
See if the seller’s would appreciate a lease back agreement (allowing them to stay in the home past closing for a set amount of time). If they’d like 7 days or less offer them free.
Don’t write your offer contingent on seeing it in person. This freaks sellers out.
State what inspection companies you will be using in your offer and the proposed dates they are available. This shows how timely you are.
Speak with your lender and closing company on making the contract less then 30 days (most conventional loans can be closed faster around 20ish days).
If you want to keep the 30 days add that you can close sooner once cleared to close.
Don’t ask for extras not being offered (like the washers or refrigerator if they are not included)
Don’t ask to exclude things that are specified to convey with the home without having your agent ask the listing agent if that would hurt your offer. (EX. a large piano some sellers can’t move it so they want it to stay).
Get in front of the line. Have your agent write up an offer ASAP and get it submitted.
5 Bonus Tips - For when it’s Contingent on you Selling
I know this can feel soooo stressful. In a sellers market it is hard to compete against other offers when you have to make your offer contingent on selling. Make sure you check out my article on how to sell and buy at the same time smoothly for more info!
Here are the 5 bonus tips to make your offer as strong as possible (make sure you use some of the above 30 too).
Include a time frame on your contingency. For example say “If not under contract within15 days (or 7 days) of an accepted contract, the sellers can cancel this contract.” This allows the sellers to have an out in case your property doesn’t sell. I would recommend this option before offering the first right of refusal.
Offer the ability for the sellers to utilize “The First Right of Refusal” this means they will be under contract with you… But, they can still advertise the property for sale and can receive offers (that are contingent to the first right of refusal) up until your current home goes under contract. If they get another offer before your home is under contract you would have x amount of time to remove your contingency.
Have your agent include in your offer all of your current home facts and their marketing plan for your property. This shows the other agent and sellers you and your agent are serious about selling and are ready to list your house asap.
Include a calendar (signed by all buyers and your agent) for when you are planning on listing your home, all open houses, and when you expect to be under contract. Also, include your backup plan for if it doesn’t go under contract by that date. This let’s the sellers know what to expect from your side once under contract, the more specific the better.
Have your lender contact the listing agent in regards to the strength of your conditional pre-approval. So, they can relay the strength of your lending situation even with it being contingent on your home selling (via email or phone).
Always have your agent contact the listing agent on your behalf and figure out the most important aspects to the sellers!
I hope this list of tips has helped you in knowing how to put your best offer forward. Just know that in all my experience both as a buyer and as an agent… in the end people always seem to end up in the BEST house for them. I know your buying journey will be one filled with emotions and I hope this article can help fear not be one.
