What Makes a Strong Offer?
When buyers hear the words “strong offer,” they often assume it means one thing:
Offer more money.
Not necessarily.
Price is important, but a real estate offer has more pieces than just the purchase price.
A strong offer is one that makes sense for the buyer and addresses the circumstances of the transaction.
Price Matters
Let’s start with the obvious.
The purchase price is important.
But the right price isn’t necessarily the highest number you can possibly write.
Your offer should make sense based on the property, the market, comparable sales, your financing and your comfort level.
You don’t want to win the house and then regret the price you paid.
Financing Can Matter
A seller may look at how you’re financing the purchase.
Having your financing lined up and providing appropriate documentation can help demonstrate that you’re prepared to move forward.
That’s one reason getting preapproved before serious house hunting is so important.
Earnest Money Matters
Earnest money is money submitted according to the terms of the contract to demonstrate your commitment to the purchase.
The amount and handling can vary by transaction and contract.
It’s important to understand what you’re agreeing to before you sign.
Contingencies Matter
An offer can include various contingencies or conditions.
Depending on the transaction, these may relate to:
- Financing
- Inspection
- Appraisal
- Sale of another property
- Other circumstances specific to the buyer or transaction
Contingencies can protect buyers in important ways, but they can also affect how attractive an offer looks to a seller.
The goal isn’t to blindly remove protections to make your offer look stronger.
The goal is to understand the tradeoffs.
Closing Date Matters
When can you close?
When does the seller want to close?
Sometimes those dates line up perfectly.
Sometimes they don’t.
If you have flexibility, that may become part of the conversation.
Possession Matters
Possession is another piece that may matter.
The seller may need time after closing.
You may need immediate possession.
The important thing is to understand what you’re agreeing to and how it affects your plans.
Seller Needs Can Matter
Every seller has a different situation.
Maybe they’re purchasing another home.
Maybe they need a specific closing date.
Maybe they want certain personal property included.
Maybe they’re looking for a straightforward transaction.
That doesn’t mean you should agree to everything a seller asks.
It means the terms of an offer can matter just as much as the number at the top of the page.
Clean and Clear Can Be Valuable
A well-prepared offer that is clear about the important terms can make the transaction easier to understand.
Your lender, attorney and other professionals may also need certain information or documentation as the transaction moves forward.
Being prepared helps.
There Is No Guaranteed Formula
This is important.
There is no offer formula that guarantees acceptance.
A seller may choose one offer over another for reasons that have nothing to do with the highest price.
And market conditions vary.
A strategy that makes sense in one transaction may not make sense in another.
A Strong Offer Still Has to Be a Good Offer for You
This is the part I care about.
I don’t want you making an offer that looks impressive on paper but makes you uncomfortable financially or removes protections you need.
The strongest offer isn’t necessarily the most aggressive offer.
It’s an offer that reflects your goals, your finances and the circumstances of the property.
What We’ll Talk About Before You Offer
When you’re ready to make an offer, we’ll look at the complete picture.
We’ll discuss:
- The property
- Comparable sales and market information
- Asking price
- Your budget
- Financing
- Earnest money
- Contingencies
- Closing and possession
- Seller circumstances when known
- Your comfort level
- Your priorities
Then you decide what you’re comfortable offering.
My job is to help you understand the choices—not make the decision for you.
Have a Question?
Buying a home comes with a lot of questions. You don’t have to figure everything out on your own.
Have a question about something you read here? Want to talk through your situation? Or just not sure what your next step should be?
I’m happy to help.
Schedule a Time to Talk With Karyn
No pressure. No obligation. Just straight answers.
Prefer to just send me a question?