Making a Competitive Offer

In a hot real estate market, where there is high demand and low inventory, it can be challenging to make a competitive offer that stands out. Here are some tips on how to make a competitive real estate offer in a hot market:

1. Get pre-approved for a mortgage: Before you start looking at properties, get pre-approved for a mortgage. This will show the seller that you are a serious buyer and can afford the property.
2. Be flexible with your closing date: If the seller needs to close quickly, be prepared to move up your closing date. If the seller needs more time to move out, offer to extend the closing date.
3. Offer a large earnest money deposit: A large earnest money deposit shows the seller that you are committed to the purchase and have the financial resources to follow through. Consider offering a deposit that is larger than the standard amount in your area.
4. Offer above the asking price: In a hot market, offering above the asking price can be necessary to be competitive. However, be careful not to overpay for the property. Work with your agent to determine a fair market value for the property and make an offer based on that.
5. Limit contingencies: Contingencies are conditions that must be met for the sale to go through, such as a home inspection or appraisal. While contingencies can protect you as a buyer, they can also make your offer less attractive to the seller. Consider limiting or waiving some contingencies, but discuss the risks and benefits with your agent.
6. Write a personal letter: Sometimes a personal touch can make a difference. Write a letter to the seller explaining why you love the property and why you would be the best buyer for it. This can help you stand out from other buyers and create a connection with the seller. Please note that writing so called "love letters" may not be accepted and has been some controversy surrounding recently.

Remember, a competitive offer is not always the highest offer. Work with your Smart Move agent to craft an offer that is fair, reasonable, and competitive in your local market as our professional agents are trained to make sure your offer shines above the rest. We are licensed in PA, NJ, and DE!