How to Make Sellers an Offer They Can't Refuse

How to Make an Offer Sellers Can’t Refuse

So, you finally found your dream house. Now you’re ready to make an offer. But remember, sellers don’t have to accept your offer. In fact, if they are getting a lot of offers on their house, yours may not get accepted.

However, there are things you can do to make your offer more attractive. Here are some tips for making an offer that sellers can’t refuse.

Offer to Pay Cash

This may not be a viable offer for all buyers but if you can pay cash, do it. Sellers like cash offers because it means the deal is less likely to fall through.

Get Pre-Approved

If you can’t pay cash, you will need to get a mortgage. Getting pre-approved shows the seller that it’s likely you will be able to get a loan. It also shows that you are serious about making a purchase.

High Price

If there’s a lot of competition for the home, making a high offer will put you ahead of other prospective buyers. Of course, you don’t want to leave yourself with a mortgage you can’t afford so think carefully when deciding what you’re offer amount is going to be.

Add an Escalator Clause

An escalator clause means that you agree to increase your offer if another buyer comes in with a higher bid. In a way, it protects you from negotiating against yourself and ‘paying too much’.

Include a Letter

Many potential buyers include letters with their offers. These letters tell sellers a bit about themselves and why they would make a good buyer. You may be surprised to find out how far this personal touch can go in helping buyers get the home of their dreams.

Agree to Pay for Extras Yourself

There are certain ‘extras’ that can be paid by the buyer or the seller. These include closing costs, HOA fees that may be due in advance or a home warranty. Offering to pay for these extras will reduce the seller’s expenses making your offer more attractive.

Be Patient

In some cases, sellers might want to stay in the home after closing. In these situations, you can work out a ‘lease back’ or ‘rent back’ agreement. Essentially, this means that you’ll be their temporary landlord until they are ready to move. It may take some other arranging, but putting this option in your offer could make your bid a favorite.

Work with Contingencies

While you can’t give up contingencies give you necessary protections, there are ways to make them easier for the seller to deal with. For instance, a financing contingency can be offset by preapproval and a strong earnest money deposit. You can use cash to get around the appraisal contingency by offering to split the difference if comes to it. You can make the home inspection contingency easier to deal with by offering to cover the cost of repairs. If all of this becomes too expensive, you can always out of the deal.

A home is a major purchase. Making the right offer will increase the chances of you getting into the home you really want. What do you recommend including in an offer to make sure you nail that deal?