Top 10 Ways to Make Your Offer Stand Out

And secure the house of your dreams:

1. Break down the top 10 ways you can make your offer stand out

2. Why each one is important

3. How you can incorporate these strategies into your offer

   Watch the video to get the full breakdown

We all know the market has been extremely competitive over the last few years, and we continue to remain in the lowest inventory market that our area has ever seen.

If you follow my monthly market report videos, you have been seeing price increases as much as 21%+ year over year, and a lot of this is fueled by the low inventory and is unlikely to slow down anytime soon.

It is not uncommon to see 5-10 offers on homes, and we have even seen as many as 30 offers on homes earlier this year (2021). Unfortunately when 10 buyers offer on a home, 9 are not going to get it, which seems pretty obvious but can feel pretty defeating as a buyer to miss out on the home you loved.  This market rewards planning, preparation and going into the process with the right mindset.

So in a very competitive market how can you make your offer stand out the most and increase your chances of winning the home?

1. Price

   1. Your strategy on pricing matters, and while the highest offer is often not the strongest or best offer, the bottom line does matter to the seller.

   2. Consider the differences between writing your “highest and best offer” vs using an escalation addendum.  I made a video on this you can check out here.

   3. Check with agent to review closed comparable sales and have them also check with the listing agent to get a pulse on how many showings the home has had and how many offers the listing agent is expecting.

2. Appraisal Coverage

   1. Even if you write a high offer, if you don’t also offer to make up a financial shortfall if the home doesn’t appraise for the escalated amount, that offer will have limited substance to it.

   2. You can specify in your offer exactly how much of a low appraisal you could make up if one occurred.

   3. I made a full video on low appraisal coverage you can check out here.

3. Inspection Strategy

   1. With 90%+ of buyers waiving inspections right now, using a typical inspection contingency can make it challenging to get your offer accepted.

   2. Consider other strategies including a preinspection, a seller procured inspection or waiving the inspection with a home warranty to mitigate some of your risk.

   3. I made a complete video that does a deep dive into each of these options that you can see here.

4. Contingencies

   1. It is important to write a really clean offer that does not have redundant or unnecessary contingencies in it.

   2. Try to do as much of your homework as possible on the home before offering on and so you can waive as many contingencies as possible.

   3. You want to make it look like you are as committed to closing on the home as possible and not looking for a way out of the contract.

5. Not having a home to sell

   1. Being a contingent buyer in this market can be very tough.

   2. With that said, there are ways to buy and sell at the same time and still not end up homeless.  This requires some very careful planning and working with very experienced agents.

   3. There is a big difference between being contingent as a buyer, and being “pending contingent” as a buyer.  

6. Offer a rent back

   1. Sometimes when a seller is selling and buying at the same time they cannot have two mortgage simultaneously because of their debt to income ratios.

   2. Offering a short rent back (2-4 weeks) once the home closes can be helpful to sellers that are in this position.

   3. I made a video that goes into rent backs here.

7. Earnest Money

   1. Earnest money is like a deposit when you are buying a home, it is not an additional cost.

   2. I recommend doing 1-3% as your earnest money, the higher it is the stronger your offer will be. This money will be credited towards your down payment.

8. Sympathy letter

   1. Writing a letter to the seller can help make a connection with them.  Many sellers care who gets the home next.

   2. Consider writing a letter that explains who you are, what you love about the home and a photo of you and your family doing something fun!

9. Communication w/listing agent

   1. Your agents communication with the listing agent will have a massive impact on how you structure your offer and if you win the home or not.

   2. They should ask about the number of showings, how many other offers are in hand, and if there is anything in particular that would be helpful for the seller in the offer they choose to accept.

   3. Agents like working with other agents that they know, trust and have worked with successfully before.

10. Lender

    1. Online lenders are tough to get offer accepted with, watch out for companies like Quicken, Rocket Mortgage etc.

    2. Consider a local, mortgage specific lender that has a strong reputation.

    3. I made a short video explaining some of the worst lenders to work with that you can check out here.

Are you ready to take the next steps toward buying or selling your home?

When you work with The Novak Team, you are putting to work the vast experience of some of the top agents in the industry, not just the area. Tap the link below to schedule a zero commitment consultation with me to see if it would be a good fit.