When Buying a Home, Why Is It Important to Make a Strong Offer Up Front?

hen Buying a Home, Why Is It Important to Make a Strong Offer Up Front?

You found the home. It fits your needs, the location works, and you can picture yourself living there. Now comes one of the most important parts of the home-buying process: writing the offer.

One mistake buyers sometimes make is starting with an unnecessarily weak offer because they assume there will always be another opportunity to negotiate.

That can be a costly assumption.

You May Only Get One Chance

When a seller receives your offer, they generally have several choices: accept it, reject it, counter it, or consider another buyer's offer.

The seller is not required to counter your offer.

If your initial offer is too low or contains unattractive terms, the seller may simply move on—especially if another buyer has submitted a stronger offer.

That's why I tell my buyers that if they truly want the home, we need to make an offer they can feel comfortable standing behind from the beginning.

A Strong Offer Doesn't Always Mean the Highest Price

Price matters, but it isn't the only thing a seller considers.

A strong offer can include several components:

• A competitive purchase price based on the home's value and current market conditions.

• Appropriate earnest money.

• Solid financing or proof of funds.

• Reasonable inspection and contingency terms.

• A closing date that works well for the seller.

• Limited unnecessary requests or complications.

• A well-prepared offer that demonstrates the buyer is serious and ready to perform.

Sometimes a seller may prefer an offer with better terms and greater certainty over an offer that is slightly higher in price.

Don't Assume You'll Get a Counteroffer

This is particularly important when there are multiple buyers interested in the same property.

Suppose a home is listed at $500,000 and you decide to offer $475,000 because you think, "We'll start low and see what they say."

Another buyer submits a strong, well-qualified offer at or near the asking price.

The seller doesn't have to come back to you and give you another opportunity. They may simply accept the other offer.

Your negotiating strategy just became irrelevant because you're no longer negotiating.

But I Also Don't Want You to Overpay

Making a strong offer does not mean throwing money at a property.

My job as your Realtor is to help you understand what you're buying before we determine an appropriate offer strategy.

We'll look at comparable sales, current competition, how long the property has been on the market, its condition, pricing history and other factors that may affect its value.

A home that's been sitting on the market for several months may call for a completely different strategy than a desirable property that was listed yesterday and already has multiple interested buyers.

Every property and every negotiation is different.

Think Beyond the Purchase Price

There are also times when we can strengthen an offer without substantially increasing the price.

Perhaps the seller needs additional time to move. Maybe a particular closing date is important to them. Perhaps there are certain terms we can structure differently while still protecting your interests.

That's where having an experienced Realtor representing you becomes important.

I don't believe in simply telling a buyer, "Offer more money."

I believe in asking:

What can we do to make your offer more attractive while still protecting you financially and contractually?

Know Your Walk-Away Number Before We Submit the Offer

One of the conversations I like to have with buyers is simple:

If someone else buys this home for slightly more than you're offering, will you be okay with losing it?

If the answer is yes, we've probably established your limit.

If the answer is, "I'd be sick if I found out I lost this house over a few thousand dollars," then we may want to reconsider the offer before submitting it.

The goal isn't to win at any cost.

The goal is to give you the best opportunity to purchase the home you want at terms that still make financial sense for you.

Put Your Best Foot Forward

Real estate negotiations aren't always like what you see on television. There isn't necessarily going to be round after round of offers and counteroffers.

Sometimes you get one opportunity.

If you truly want the property, let's put together a strong, well-researched offer from the beginning—one that tells the seller you're serious while still protecting your interests as a buyer.

Thinking about buying a home? Let's talk before you start making offers.

I can help you understand the market, evaluate the property, develop an offer strategy and negotiate on your behalf from contract through closing.

Wes Stolsek

REALTOR®

OMNI Homes International

520-404-9773