Buyers, tired of losing out in this competitive seller’s market? With prices soaring, how can you get your offer accepted in this heated market? Simple, just submit the best offer. Well, it’s simple in concept, but it’s not simple or easy in the execution. 

In this fast-paced video we’ll cover 20 tips to get your offer accepted. Don’t miss our Bonus Tip! Let’s jump in.

1. Find out what the sellers’ needs are. As a buyer, the very first thing you want to do is figure out what the seller’s wants and needs are, then craft your offer around this.

2. Set a positive tone. As a buyer, you want your agent to have good rapport with the listing agent and assure them it will be a smooth process working together with another professional. Sometimes the winning offer is chosen because of the professional and positive experience the listing agent and seller have with the buyer’s agent and buyers. We are not saying that your offer is going to be chosen over another higher offer just because you’re nice. But, when it’s a close battle, having that rapport can help

3. Have your offer personally presented. Yes, having your agent present a strong offer in-person or via zoom to the listing agent can make your offer standout. Most agents simply email their buyers offer and then might follow up with a phone call to the listing agent. But you don’t want to do what every other agent does. It sets the tone of professionalism, allows us to talk up our buyers and promote the advantages of the offer.

4. Consider submitting your offer early. This comes with some risk. On one hand, this means you are showing your hand early. This could work in your favor if you have an impressive offer and the seller decides to accept it. On the other hand, the seller could use your offer to try and solicit other stronger offers. While most sellers do decide to wait until the offer review date, there are still lots of sellers who are willing to accept an early offer.

5. Provide Strong Earnest Money. The oxford dictionary defines earnest as “showing sincere and intense conviction.” The stronger your earnest money is, the more serious it shows the seller you are. And don’t worry, you have nothing to fear regarding losing your earnest money IF you keep your end of the bargain and follow the contract. Just be sure you understand the details of the contract so there is not ambiguity. On a $1,000,000 purchase, $25,000 - $50,000 earnest money is common. To stand out, offering $100,000 or more is better. Remember, the earnest money is applied to your purchase. So, if you are planning on a $200,000 down payment, why not use a big chunk, or even all of this as your earnest money?

6. Offer a strong price upfront. Sure, every buyer wants a deal. And because of that thinking, you might strategize the offer lower than what you are willing to pay because you think the seller will come back to you with a counteroffer. But in this market, that usually doesn’t happen. We can’t assume the seller is going to give you a second chance, so offer a strong price to begin with.

7. Include an escalation addendum. Having an escalation addendum allows you to jump higher in price, so you beat other offers, up to the price ceiling you choose. Are you OK losing the house you love because another buyer is willing to pay $10,000 more than you? Everyone has a line in the sand, and we are not advocating that you cross it. At the same time, just don’t live with the regret of not having offered MORE when you were given the chance. 

8. Make your escalation increases effective. In other words, make your price jumps meaningful. For instance, if you are submitting an offer on a home that is offered at $1 million dollars, don’t think that offering $500 or $1,000 more than the next offer is going to be meaningful enough to the seller. Meaningful price increases mean something like $10,000, $15,000, or $20,000 price jumps.

9. Choose the RIGHT lender. Yes, the seller and a good listing agent will care who the lender is and will do homework on that lender. Even if you’re waiving your financing contingency, it’s still prudent to have the right lender. This means someone who has a great track record of successful closings on time or early, someone who communicates well and is preferably local. Also, make sure your lender calls the listing agent.

10. If using a financing contingency, Get preliminary-underwriting approval vs the standard pre-approval. Preliminary underwriting means that your lender will put your application through the scrutiny of the underwriting process BEFORE you’re under contract for a house. This is really proactive and shows the sellers you are a safe bet and proof that you’ll make it to closing without any surprises.

11. Put more money down. When you are in the position to put 25 or 30% down, while other offers are putting 10 - 20% down, that makes your offer stand out as well.

12. Cover an Appraisal Gap. If your offer is subject to a financing or an appraisal contingency, you can sweeten your offer by covering the difference between the appraisal price and the purchase price. If you have the extra funds, this is a good tactic. You get to impress the seller with a stronger offer, and often times, it’s a non-issue anyway when the house appraises for the full value.

13. Show proof of funds. By being able to provide you have money in an account and ready to go, this is beneficial to the seller. It gives the seller peace of mind and confidence.

14. Release the earnest money to the seller. This strategy allows your earnest money to be held by the seller as a non-refundable deposit, after mutual acceptance. Most commonly, the earnest money is held by escrow. However, this demonstrates to the sellers that they have nothing to worry about. In practice, this is used when the buyer has waived all contingencies, is going all in on the offer, and has no recourse or way to back out of the transaction unless they risk losing their earnest money.

15. Waive some or all contingencies. This does not mean you should go in blind. Quite the opposite. You definitely don’t want to risk purchasing a home without doing your homework and due diligence. Why not do a pre-inspection, review the title report, and get preliminary underwriting approval from your lender before submitting the offer. Then, you can feel good about waiving some, or even all, of your contingencies.

16. Sign off on all disclosures. If your offer has already signed off on things like the seller disclosure statement, lead based paint disclosure, information verification period, HOA review, and other seller disclosures you are strengthening your offer.

17. Provide a free rentback to the seller. If you give the seller this option, it allows them the convenience of living in the home for a period of time after closing. This can be a huge help to them and make your offer stand out.

18. Have a quick closing date. Better yet, have the seller choose the closing date. Does that mean a closing as quick as possible, which is often the case? Or would the seller like a closing date that is further out. Either way, give the seller what they want. Just be sure you can deliver on what you are promising.

19. Write a “love letter.” This is a bit of a controversial one. Some agents promote this, others are against this. The advantage is to express how much you love the property and also gives you the chance to introduce yourself. The disadvantage is 2-fold. First, if your offer is not accepted you could take it more personally. Second, a lot of listing brokers are hesitant for letters to be included in an offer due to it potentially backfiring. Yes, it can open a can of worms due to Fair-housing law violations and anti-discrimination laws.

20. Offer to pay the sellers moving expenses. Sure, you can just increase the purchase price of the home. But having a strong purchase price AND being willing to pay some, or all, of the sellers moving expenses is impressive, shows creativity to your offer, and could really help them out in the process.

And our bonus tip is…

21. Allow sellers to leave anything behind. This might include any trash or that old dresser they decide not to take with them. Why not give the seller the convenience of leaving any items on the property so it’s easier on their move.

When you boil it down, there are only 2 parts to an offer. Price AND terms. It’s usually the offer with the best price AND best terms that wins. But not always. Sometimes, the seller chooses an offer with the best terms, over an offer with a higher price. OR vice versa. The thing to remember is an offer is generally evaluated as a whole. When you can provide the seller with a clean offer that has a superior price and superior terms compared to the other offers, that’s when you have the advantage.