Three Ways For Buyers To Strengthen Their Offer

A higher price offered isn’t the only way to entice sellers

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

Increase your earnest deposit amount

When 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 stronger offer in a seller’s eyes. The more money a buyer puts down, the more risk they have. At a certain stage 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 option

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

Consider an escalation clause

This is a strategic contract addendum that you can employ when a bidding war is inevitable. It stipulates that it will increase the buyer’s amount by a certain amount over the highest bidder should there be another one. It can be challenging 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.