What are the best ways to make your offer stand out in a competitive real estate market?

A showing without a pre approval letter is a waste of your time, your buyer's time and the seller's time. Don't let them do it. Homes go too fast to spend time falling in love without having the proper paperwork lined up. This is an item of diligence that you have to be aware of and coach your clients through on the process. Plus, make sure you include the pre-approval letter in your offer so the listing agent can verify that your buyer has the goods.

Pre-Approval Confidence: Obtain a pre-approval for a mortgage to showcase your financial readiness and seriousness as a buyer. This instills confidence in sellers that you can proceed smoothly with the transaction. Personalized Connection: Craft a heartfelt letter to the seller expressing your genuine interest in their property. Creating a personal connection can evoke empathy and set your offer apart from others. Competitive and Realistic Pricing: Offer a competitive price that aligns with the market value. While it's essential to be competitive, ensure that your pricing is realistic to demonstrate your commitment without overstretching your budget.

In a competitive market, making your offer stand out is crucial. One strategy is personalization – tailoring the offer to meet the seller's unique needs. This could be flexibility with closing dates, or understanding their motivations. Another approach is ensuring financial readiness – making sure your client's financial documentation is in order, showing they're serious and prepared. Adding a personal touch, like a heartfelt letter explaining why this home is perfect for the buyer, can also make a significant impact

In the UK a buyer needs to formally instruct a solicitor or conveyancer before viewing properties and put them in funds so they can commence work immediately an offer is agreed.

To make your offer stand out in a competitive real estate market, consider these strategies: Offer above asking price if financially feasible, to immediately capture the seller's attention. Provide a larger earnest money deposit to show serious commitment. Limit or waive contingencies, like inspections or financing, to expedite the process and reduce seller risk. Write a personal letter to the seller, expressing genuine interest in the property and how it fits your needs. Be flexible with closing dates to accommodate the seller's timeline. Work with a reputable real estate agent who can effectively negotiate and present your offer in the best light. These tactics can increase the attractiveness of your offer in a competitive market.

Escalation clauses are a great tool to use, especially in situations where you expect multiple offers in a very tight price range. It can also prevent your client from over-paying. The escalation is only used if its needed to win over a competing offer, and only in the increments you set. One note: If your escalation clause is used to escalate your offer to acceptance, be sure to ask the listing for a copy/verification of the offer that was submitted that required the use of your escalation. I.e verify the escalation was applied properly. Many Realtors don't use escalation clauses, so this can be your secret weapon in winning the offer.

Using an escalation clause is an amazing tool that so many realtors don't use or even know about. Basically it allows you to bid higher than any other offer on price or terms. It has helped our clients get their offer chosen in a multiple offer situation.

Escalation clauses are highly discouraged in North Carolina. Listing agents are not allowed to share competing offers without permission from the submitting party so it’s difficult for a buyer to get proof that a higher offer exists. Also, other terms besides price are important, such as the nonrefundable Due Diligence Deposit commonly used here. The highest price offer isn’t always the best. If you do submit an escalation clause in NC, an attorney must draft it. Writing one is considered practicing law, and realtors are prohibited from practicing law.

In my experience escalation clauses have been useful on both the buyer and sell side. One time, we encouraged escalation clauses on an $850,000 listing and were able to drive an offer up to $912,000 (cash). Without encouraging these we may have only received a highest and best of $875,000. Yes, we may have also received a highest and best of $925,000 without one, but to generate an offer that's $62,000 above list price is huge in our market and a win for all parties involved!

An escalation clause can be a strategic move in a competitive market. I had a client who wanted a particular house. We included an escalation clause, which was a wise decision. Another buyer made a slightly higher offer, but thanks to our clause, our offer automatically increased, securing the home for my client without exceeding their budget. It's a smart way to stay in the game without overstretching financially.

Sellers are sometimes looking for another home to move into. If you're able to be flexible on the closing date for them, it can sweeten the deal. Above all, communicate with the listing agent to make the transaction move along smoothly and ask the other agent questions so that you can tailor your offer. Don't just email it in with all the rest; your duty as an agent is to help your buyers stand out.

The key to getting your offer accepted is to talk with the listing agent to find out what specifically the seller is looking for. Flexibility is the key to getting your client's offer chosen in a multiple offer situation.

A flexible closing date is beneficial as it caters to the seller's needs, potentially making your offer more attractive. It offers sellers convenience, especially if they need time for relocation or closing their own new home. For buyers, it provides negotiating leverage in a competitive market and allows for smoother transactions if issues arise. Additionally, flexibility can facilitate personal planning for buyers and sometimes leads to cost savings, as sellers might negotiate on price for this convenience.

Flexibility with closing dates really can make a difference. I had very adaptable clients on their closing date, and this flexibility made their offer stand out. The sellers needed an extra month to relocate, and my clients agreed without hesitation. This willingness to accommodate the sellers' timeline helped seal the deal, especially when multiple offers were on the table. It's all about understanding and meeting the seller's needs whenever possible.

The closing date plays a crucial role in a seller's decision. Offering flexibility in this regard can significantly enhance your bid's appeal. Some sellers prioritize a swift closing, while others require more time for relocation. To align with the seller's preferences, inquire through your agent about their ideal timeline. Adjusting your offer accordingly demonstrates a willingness to collaborate, fostering a smoother transaction. Being adaptable to the seller's needs not only increases the likelihood of acceptance but also establishes a positive rapport in the negotiation process.

Don't add a personal letter. This sort of tactic opens sellers up to fair housing disputes, even if there is no bad acting involved. Many sellers will state, on the record that they don't open personal letters, so that it can't be said they factor the contents of a letter into a decision. Respectfully, this suggestion is a case of AI reading a whole bunch of suggestions about this tactic from five years ago and not being in tune with the current market climate.

Personal letters are a fantastic way of humanizing your offer, however it is now a choice on a listing agreement as to whether the seller wants their agent to present to them or not. There have been lawsuits against sellers for choosing an offer based on a letter. To get around this, we often tell a bit about our client in the body of the email instead of a love letter. It helps our clients' offer to be chosen in a multiple offer situation.

This is one I'll actually disagree with. I understand the theory, but it opens too many doors for Fair Housing violations. Theres a reason certain states have banned them.

Including a personal letter with your real estate offer can be a game-changer. It personalizes the transaction, allowing you to connect emotionally with the seller. By sharing your intentions and aspirations for the property, you can stand out among other offers that might be purely transactional. This approach can be particularly effective in a competitive market or when dealing with sellers who have a deep emotional attachment to their home. It's a way to make your offer memorable and potentially more appealing, beyond just the financial aspect.

Keep it simple! The fewer the contingencies, the more conformable both parties will feel. We try to negotiate one major deal breaker and one minor.

In Manhattan's competitive market, reducing contingencies can indeed give you an edge. I had a client who was bidding on a highly sought-after property. They were financially stable and decided to waive the financing contingency, demonstrating their commitment to a quick and secure sale. This move showed the seller they were serious and ready to proceed without delay. It made their offer more appealing than others with more contingencies, ultimately helping them secure their dream home in a tough market.

If your client is putting down enough money that the appraisal won't matter, then waive it. Talk with the lender to see if they can get full approval (clear to close) shorter than the default on the contract. Definitely recommend shortening the inspection contingency. There are plenty of inspectors that you should be able to get a home inspection quickly. The shorter your contingencies, the better chance your buyer has of getting their offer accepted.

Yes, this is an instance where less is more. The less contingencies the more likely your offer is to be accepted. Proceed with caution though, removing contingencies such as inspection can be detrimental to your clients. There's a reason we advise for (2) home inspections on new builds. Older homes are even more prone to issues flagged by an inspector.

Contingencies safeguard buyers but can deter sellers. Essential ones, like home inspection, shouldn't be waived for safety. However, for a new or well-maintained home, skipping inspection is an option. If financially feasible, waiving appraisal with sufficient cash can streamline the process. Reducing contingencies enhances offer appeal and minimizes the risk of a deal collapsing. Balancing necessary safeguards with flexibility can optimize your position in a real estate transaction.

keep your money in the bank and instead consider offering a Reservation Agreement. This is a binding "Lock In" subject to contract, finance and survey, which shows your commitment in a professional way. In certain instances there are companies that can guarantee this commitment between both seller and buyer at a fraction of the cost of a large cash deposit.

We utilize monthly payments into escrow during Due Diligence before "Going hard" on the deal or DD failing and we pull out of a contract based on methods allowed within the contract. #RealEstate

Earnest money is a suggestion on the MLS. If you double your earnest money (or even better, make the earnest money HARD, so that your buyer loses it if they back out), that will automatically make you stand out as a serious buyer. If your buyer wants the home and has the cash, and is very serious about the place, ask them if they're comfortable parting with more earnest money up front. They'll end up paying it in the down payment but that good faith up front goes a long way with sellers.

In California, 3% is the max amount that can be given to a seller if both buyer and seller sign the liquidated damages clause. This is why most sellers want escrow to hold the full 3%. If less than that, your client's chance of having their offer accepted in a multiple offer situation is decreased.

In North Carolina, it’s common to offer a non-refundable Due Diligence deposit. This is true “skin in the game” as the buyer loses those funds if they terminate, even if they discover a significant problem with the house at inspection. A higher DD deposit definitely makes your offer more competitive. During Covid, these deposits got shockingly high and were sometimes as important as price to sellers. Thankfully, our market is normalizing but we still see competitive DD deposits offered in multiple offer situations.

Leaseback option: If a seller needs more time to pack their home and/or is still closing on a new home for themselves, a leaseback option is a great way for buyers to sweeten an offer. A leaseback is when you allow the seller to lease the home from the buyer/new homeowner for an agreed-upon amount of money and time (similar to a short-term rental). This allows the seller to remain in the home without the buyer prolonging the closing process. The buyer should keep money in escrow if anything is damaged when the sellers leave the home, like a security deposit. This plan is contingent on the buyers not having to move into their new home right away, making it best for buyers purchasing a second home or still selling their current home.

If you want your offer to stand out, you need to tailor the offer to what is important to the seller. To do so, you'll want to have an outstanding realtor as an advisor, as they both know the market and can likely get the best 'intel' from various sources what is most preferred by the seller. The more your offer is in sync with the wants and needs of the seller, the more likely you will be the winning bid.

Appraisal waivers (where you agree to pay the difference in price if the home appraises below the purchase price) can make your offer more competitive if you're not a cash buyer. This is a viable option if you're concerned that the home won't appraise and you have the funds to pay the difference. I always tell buyers to discuss this with their lender before submitting the offer to make sure they're aware of any risks.

At the end of the day, you may or may not succeed in the negotiations. And that's okay. The joy is truly in the journey, not the destination.

Find out what's important to the seller and make that work. You would be surprised, many times, it's not always just about the price.