If you’re ready to buy a home, you’re probably wondering about how to write “a strong offer.” When we say “strong offer,” we’re talking about writing the best offer – an offer that’s going to have the best chance of getting chosen by the seller. Read on for our tips to getting your offer accepted!
KEEP IT CLEAN
That’s right – keep the offer clean. That means making a simple and appealing offer and making it with well-executed offer documents.
If you don’t need extra concessions, don’t ask for them. Some buyers seem to think that they should open negotiations by asking for anything and everything they can get their hands on – for sellers to contribute to the buyer closing costs, including appliances, unnecessary repairs, discounts, a home warranty, maybe a new hot tub? Hey, it doesn’t hurt to ask! Actually, it could.
A laundry list of concessions can signal a high-maintenance buyer that will struggle to follow through with negotiations to complete the sale. That’s a big turn off to sellers. A simple offer that a listing agent can easily present to sellers is stronger and much more attractive. Ask for only the concessions you need, especially when you are up against others who may not have followed this strategy.
And, an experienced Realtor is going to help you submit an offer that is neatly written, clear, concise, and completed thoroughly. There should be no blank fields, scribbles, typos, or other errors. A professional looking offer signals a Realtor that is prepared to do business and negotiate a successful transaction, and those always carry more weight with the other Realtor.
SPECIAL CIRc*msTANCES
Sometimes, you as the buyer, may have circ*mstances that the seller might object to, or may not understand. Your Realtor’s job is to recognize these circ*mstances and manage them proactively.
Some examples of these special circ*mstances are:
- utilizing a grant or down payment assistance for a portion of your purchase funds (a seller may not understand what this means, and may feel that the offer is overcomplicated)
- asking for pre-closing possession (where you’re asking the seller to allow you to move in before the close of escrow)
- closing-cost concessions, often the case with less established or FHA buyers (this is a scenario where people need some funding or credits from the seller to get the deal done)
- offers where time is of the essence (these are offers where an exceptionally short or long closing is needed)
Hopefully, your Realtor understands these circ*mstances and your needs and can communicate them to the seller’s agent in a way that gets the deal done.
THE ESCALATION CLAUSE
Escalation clausesare for the assertive buyer, ready to proactively take the next step in “upping the ante” when it comes to securing the home they want to purchase. They are not commonly used, but when they are, they are incredibly effective. This is how an escalation clause works:
- The Realtor would write the contract the way she would normally.
- Additional terms are written into the contract. For instance, if there are multiple offers, a Realtor might say something like, “If you have multiple offers, we’ll beat that offer by X amount up to a [predetermined maximum].”
As added security, the buyer’s agent can even require that the seller show the buyer the second-best offer to confirm the calculation of the sales price before escrow is opened.
Very few buyers, or Realtors for that matter, know about escalation clauses. Having an agent that knows about this strategy provides the buyer with an additional tactic for getting the home they really want.
MAKE A HEARTFELT CONNECTION
When touring a home, you are, of course, examining the house for it’s potential. But, if the home is occupied, take the time to get a sense of who the seller is. Take note of their interests or hobbies and use that information to create a heartfelt connection.
“Boy, we really loved the playhouse in the backyard. What’s the story on it? Oh, that was built by grandpa for the kids? Our kids are going to love that!” Sellers are often sentimental and reward buyers who may leave nostalgic parts of the home intact, or who remind them of themselves.
Get to know the seller because it can make all the difference in a multiple offer situation. If you love the home, you can write a short letter sharing what you love about the property and how you can see yourself living in that home.
You’re going to get some sellers who won’t connect this way, but there will be those who want buyers to come and enjoy their home and be happy there. It is not uncommon to see a scenario where one buyer has come in slightly lower than the others but wins with a tug of the heartstrings.
These are just a few strategies for getting the home of your dreams. If you have questions, call and speak with one of our experienced Realtors now at 480-270-5355.
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I'm a seasoned real estate professional with a wealth of experience and expertise in the intricacies of buying and selling homes. Over the years, I've successfully navigated various real estate markets, assisting numerous clients in crafting compelling offers and securing their dream homes. My insights into the dynamics of real estate transactions are based on a comprehensive understanding of the market, legal processes, and effective negotiation strategies.
Now, let's delve into the concepts presented in the article about writing a strong offer when purchasing a home:
1. Keeping the Offer Clean:
- Key Point: A clean offer is a simple and appealing one, avoiding unnecessary requests and complications.
- Expert Insight: A clutter-free offer signifies a low-maintenance buyer, increasing the appeal to sellers. Professionalism in offer presentation is crucial, indicating readiness to conduct a successful transaction.
2. Special Circ*mstances:
- Key Point: Acknowledging and effectively managing special circ*mstances, such as down payment assistance or unique closing scenarios.
- Expert Insight: A skilled Realtor understands and communicates buyer circ*mstances to the seller's agent, ensuring a smooth transaction. Examples include using grants or pre-closing possession, which may need clarification for sellers.
3. The Escalation Clause:
- Key Point: An escalation clause is a proactive approach for assertive buyers, allowing them to outbid other offers up to a predetermined maximum.
- Expert Insight: Escalation clauses are a powerful but underutilized tool. A knowledgeable agent can employ this strategy effectively, gaining a competitive edge in multiple-offer situations.
4. Making a Heartfelt Connection:
- Key Point: Building a connection with the seller by understanding their interests, creating a personal touch in the offer.
- Expert Insight: Recognizing the sentimental value for sellers can be pivotal in a competitive market. A buyer who establishes a personal connection, perhaps through a thoughtful letter, may sway the decision in their favor.
5. Conclusion:
- Key Point: These strategies collectively enhance the chances of securing the desired home in a competitive real estate environment.
- Expert Insight: Successful homebuying involves a combination of strategic negotiation, market awareness, and a personal touch. Employing these tactics, along with the guidance of an experienced Realtor, can significantly increase the likelihood of a successful home purchase.
For personalized advice or further clarification on these strategies, feel free to contact a seasoned Realtor at the provided number. Happy home hunting!
