The Strategy Behind a Winning Offer


Let’s talk about making offers and negotiating. Going into this process with a plan can be the difference between feeling great about the deal you got or having buyer’s remorse when you realize that your emotions got the best of your budget.

I want to make sure you come away from this experience feeling great about the value that you got for your money. Either that, or you feel content about walking away because you stuck to your plan and it just wasn’t the right property for you.

If you get nothing else out of this article, the mindset I want you to have is this: don’t give away anything for free.

For example, you might happen to meet the seller's agent at a showing. If you casually mention to them how much you love the backyard and that you really want your kids in this school district, you may have inadvertently given away thousands of dollars in negotiating leverage. A simple, “Thank you for letting us view the property,” is sufficient.

Generally, the agents will do most of the communicating. A good agent should be a shrewd negotiator who acts only with your best interests in mind. While professionalism and courtesy are a given, I’m not there to make friends; I’m there to be your advocate.

Whether you are being relocated for work and are in a time crunch or I'm aware that your budget is higher than your offer, it's my job to keep that information confidential.

Strategizing ahead of time helps us understand your limits and priorities, and it signals to the seller that you’re a serious contender. When we are determining how much to offer, we’ll look at four factors:

  • The Comparables: We’ll research recent sales of similar nearby homes to ensure the asking price is grounded in reality.
  • Days on Market: If a home has been listed for several months or has seen price reductions, the seller is likely motivated. This is often where we find margin to request concessions or negotiate on price.
  • Necessary Repairs: Factor areas of significant neglect or structural needs into your initial number.
  • The Competition: In a bidding war, we might need to adjust our offer, or prepare a backup offer, in case a higher one falls through.

And while the purchase price gets most of the attention, contingencies ensure you have built in protection if something goes wrong. Here are some of the most commonly included contingencies:

  • Home Inspection: This protection gives you a specific window to identify undisclosed defects and submit a "Request to Remedy." If the seller refuses to address the issues found, you have the right to renegotiate the price or walk away.
  • Appraisal Contingency: This ensures that if the bank's appraisal comes in lower than our offer, there is a plan in place so you aren't forced to provide extra cash to cover the difference.
  • Financing: This protects you if you are unable to qualify for the mortgage.
  • Title Search: This confirms the seller legally owns the home and can transfer it to you free of liens or legal disputes.

When we submit the offer, it's a formal package. In addition to the price, it includes your earnest money, your preferred closing date, and your pre-approval letter.

If a seller expects their house to receive several offers, they may set an "Offer Deadline.” This is where they may say something like, “We will review all offers on Monday morning and choose the best one.” Making an offer immediately just because you liked the house doesn't usually provide an advantage in this situation. Instead, it can give you extra time to sleep on it and compare the property to more recent sales.

In normal situations, the seller typically responds within 24 hours to accept, decline, or counter your offer. If they counter, you can accept, decline, or counter back. One vital thing to remember: once an offer is declined or countered, it is considered void. 

If a seller counters your offer and you decide not to meet their price, they cannot change their mind and go back to accept your original lower offer. The slate is wiped clean. If you don't like their counteroffer, you can resubmit your original offer again, revise it, or wait a period of time to see if they get any other offers. If two weeks go by and it's still on the market, they may be more motivated. 

Once everyone agrees and signs, the home is officially under contract.

Thanks for your time and I hope you have a great day!

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