Strategies to Help Get Your Home Offer Accepted (Beyond Just the Price)

Author: Cathy Shaw

When making an offer on a home, it seems only logical that the highest price bidder will win every time. However, contrary to widespread belief, that is not always the case. From our vast experience, the seller chooses the offer that’s not the highest price more than a quarter of the time.

Here are some other crucial factors that often play a leading role in a seller’s decision for which offer to accept.

Seller’s certainty in the buyer is key

As a seller, feeling confident in the buyer’s ability to seal their end of deal is essential. Most ideal is a cash offer, sometimes referred to as a “king of the hill” offer, which is not tied to any financing or appraisal contingency. In this scenario, the buyer technically has all the money needed to purchase the home and will not need to rely on a loan to fund the purchase.

On the other hand, if a buyer knows their financial health is rock solid, they can submit an offer that is not contingent on financing or appraisal, even though they require a loan. An offer like that requires a bit of additional crafting.

If the buyer requires some financing and is not comfortable waiving their contingency, but they are equipped to bridge the gap between the offer price and the property appraisal, a seller will likely consider this more desirable than an offer contingent on both financing and appraisal.

Home inspections matter

Not having a home inspection means a buyer is taking on inordinate risk. We only advise this route in the case of competition and if the buyer has the financial and emotional wherewithal to deal with unexpected defects.

Another option is to include an inspection but to limit it. For instance, the buyer would only come back to the seller if the sum total of defects exceeds a certain dollar amount.

Other influential offer factors for buyers to consider

These can make a substantial difference when it comes to making an appealing offer:

• Earnest deposits or good faith deposits — money put down before closing on a home — between 1% and 3% are common. However, an earnest deposit of 5% or more definitely stands out.
• Providing a flexible closing date provides more convenience and peace of mind for the seller (e.g., allowing a seller to choose a closing date within a two-week window).
• Offering post-closing occupancy for free or at a nominal cost allows a seller to move out at their pace, whether days or weeks after the closing date.
• Creating shorter windows on contingencies (e.g., earnest and inspection) typically makes an offer more attractive.
• Working with an agent who is respected by their peers and possesses a reputation for getting their buyers to the finish line carries weight in apples-to-apples offers.

Note: Many of the aforementioned financing and inspection techniques involve risk. Please consult with an experienced realtor before proceeding with these tactics.

To learn more about how you can have greater success with your offers, feel free to call us at (414) 622-7159 or email info@thefrgteam.com.