Getting Outbid? Strategies to Make Your Offer Stand Out and Get Accepted

Dated: September 3 2020

Views: 279

Summer is traditionally a busy time for buyers and sellers. This year has been no exception—and with lower interest rates, many homebuyers are finding the competitive environment challenging. With multiple buyers competing for properties, even terrific offers are often being outbid. Fortunately, there are some things you can do to make your offer more attractive to the sellers and increase the chances of getting the property.

• Have Full Pre-Approval – A step beyond pre-qualification, a pre-approval involves submitting your full application to underwriting. Your lender will collect all your financial data and submit for review. This is stronger than a pre-qualification; a pre-approval requires the buyer to provide the proof of their ability to qualify for the loan.

• Increase the Earnest Money – Earnest money is the deposit held in escrow. While the contract will dictate how monies are disbursed in the event of a cancellation, increasing the amount offered can show the seller you’re serious.

• Add an Escalation Clause – In a bidding war, it can be difficult to know what to offer because you want to outbid the competition without going too high. An escalation clause is one way to automatically outbid the others. The clause typically offers an amount—$1,000 for example—higher than any verifiable offer up to a specific amount. This can ensure yours is the highest offer.

• Pay any Appraisal Shortage – When offering more than asking price, sellers become concerned about the appraisal coming in too low. If you are willing to pay over market value, include the amount of shortage you are willing to pay.

• Remove Inspection Contingency – This option can be tricky, but if you are planning a large remodel or are willing to tackle any defects found, then you can make your offer stronger by accepting the home as-is.

In this fast-moving, competitive real estate market, it’s important to make your offer stand out from the crowd. These strategies are great ways to demonstrate to the sellers that you’re serious about buying their home, increasing the chance of having your offer accepted. 

Blog author image

Sweet Magnolia Homes

Sweet Magnolia Homes brings a local knowledge to the markets we serve that has been obtained from years of living and working in Atlanta and the surrounding suburbs. This means our agents are intimate....

Latest Blog Posts

Understanding How Property Taxes Work: What Every Homeowner Should Know

 Property taxes are a significant part of owning a home, and while they’re often something we pay every year without much thought, understanding how they work is essential. Whether you're

Read More

Why Curb Appeal Matters When Selling a Home: First Impressions Count

When selling your home, you’ve probably heard the term “curb appeal” tossed around. But what exactly does it mean, and why is it so important? In simple terms, curb appeal refers

Read More

Spring Festivals and Events in Our Area

Atlanta Dogwood Festival (April 12-14): One of the most popular spring festivals in Atlanta, this event features live music, arts and crafts vendors, a dog parade, and more. It's held at Piedmont

Read More

Ready to Simplify Your Home? Some Questions to Help

Each new year, it’s common to take a serious look at your home and decide to make some changes. Lifestyle changes, including diet and exercise, often result in looking at other ways to remove

Read More