Making your offer
1. Look for ways to help your offer stand out
Be creative. Consider paying closing costs or other seller fees to make your offer look more attractive. Think about offering a short close; offer to pay their moving costs or allow the sellers to remain in the home for a month or so after closing.
2. Limit the contingencies in your offer
Show flexibility where possible. However, think twice before waiving an appraisal or home inspection. You take on extra risk when you forego these two.
3. Offer an earnest money deposit
Earnest money shows that you’re a serious buyer. Typically, this deposit totals 1 to 3% of the home’s asking price, but it can be any amount you wish. However, make sure you want to really buy the home before offering this because if you don’t go through with the purchase, you could lose this deposit.
4. Avoid the temptation to get into a bidding war
Instead, consider adding an escalation clause that says you will outbid competing offers up to a certain maximum. For example, if you offer $500,000 for a home, you could include a clause in your offer that says you will pay $5,000 over the highest competing offer, up to a maximum of $525,000. Just make sure that the clause doesn’t push you over your budget.
5. Make a competitive, fair offer
Unjustifiable low-ball offers show that you’re only fishing for a deal and not serious; it also wastes your realtor’s time.