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How to Make a Winning Offer in a Competitive Real Estate Market
5 months ago
How to Make a Winning Offer in a Competitive Real Estate Market

Summer is a busy time for buying and selling, and with lower interest rates, competition among buyers is fierce. In such a fast-moving market, even strong offers can be outbid. Fortunately, there are several ways to make your offer stand out and increase your chances of securing your dream home. Here are some strategies to help you make a winning bid:

1. Get Full Pre-Approval

Go beyond pre-qualification with a full pre-approval, which involves submitting your complete application for underwriting. This step shows the seller you are a serious buyer with solid financing, making your offer more attractive.

2. Increase Your Earnest Money

Earnest money is the deposit held in escrow as a show of good faith. Offering a higher-than-usual amount demonstrates to the seller that you’re committed to the purchase, adding weight to your offer.

3. Add an Escalation Clause

In a bidding war, it’s challenging to know how much to offer. An escalation clause allows you to automatically outbid competing offers by a set amount—say, $1,000—up to a maximum. This way, you ensure your offer is competitive without overcommitting.

4. Cover Any Appraisal Shortfall

When bidding over the asking price, sellers may worry the appraisal won’t support your offer, impacting financing. By agreeing to cover a potential appraisal shortfall, you reassure the seller of your commitment and financial readiness.

5. Consider Waiving the Inspection Contingency

While removing the inspection contingency is risky, it can make your offer more attractive. If you’re planning a remodel or are comfortable with the property’s current condition, accepting the home as-is can set your bid apart.

In today’s competitive market, standing out is essential. These strategies can help you strengthen your offer and demonstrate your commitment to the seller, giving you a better chance of securing the home you want.

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