3 Ways For Buyers To Strengthen Their Offer

Competition in the real estate marketplace is still strong this summer and there are only so many homes on the market that many buyers are all competing for. According to a recent report from Realtor.com, several buyers have shared some common strategies that are making their offers stand out aside from others with just a higher dollar figure. Here is a closer look:

Increase earnest deposit amount

If there are two offers that are offering similar money and terms but one is putting more earnest money down, chances are that they will be the better, more solid offer in a seller’s eyes. The more money a buyer puts down, the more “skin in the game” so to speak they have. At a certain point in a sales transaction, buyers become more bound to the deal and cannot back out without penalty or loss of their earnest money. This makes a buyer’s offer more solid to choose.

Offer a leaseback situation

Just like most buyers face the problem of finding a suitable home, sellers are experiencing the same once they lock in a buyer and begin looking for their next home. Buyers can help ease the transaction by offering a leaseback for say 60-90 days at no charge to allow them some time to locate their next property. This can be great as it reduces the pressure for them to consider temporary housing should they not find their next home in time. 

Add in escalation clause

This is a strategic contract addendum that you can use when a bidding war is inevitable. It essentially says it will increase the buyer’s amount by a certain amount over the highest bidder should there be another one. It can be tough as it sends a message to a seller that they are willing to pay more, but if they are in a competitive bidding scenario then they won’t lose out if their first amount was lower than the maximum they would be willing to pay to secure the home.