How to Make an Offer That Sellers Can't Resist

4 Tips

1. Offer Above-Asking

It should come as no surprise that if you want to get looks from the seller, offering more money than what they initially ask for is a good start. While you aren't required to offer over asking, your offer must be strong enough to beat other potential bids in competitive markets.

The amount of money you should offer over asking is a bit fluid. You may only need to offer a few thousand dollars more in some markets. Therefore, it's crucial to balance your offer, while still above asking, with home prices in the area. Your real estate agent should be able to advise or contact our cake concierge center to find out about recent home sales in your area.

2. Put Down More Earnest Money

Another way to grease the wheels on your offer is to offer the seller a larger earnest money deposit. Offering up a sizable earnest money deposit demonstrates to the seller that you are a serious buyer.

If the deal falls through, you aren't always entitled to a refund of your earnest money, especially if you decide to pull out of the deal after inking a contract.

For this reason, earnest money can be a powerful motivator and, as an added benefit, will be credited toward your down payment and closing cost down the road.

3. Include an Escalation Clause

As markets heat up, sellers will be getting multiple offers for their home. Adding an escalation clause to your offer is a great way to hedge against other incoming offers. An escalation clause works because you agree in your offer that if another offer is presented to the seller that outbids your existing offer, you will automatically outbid them up to a predetermined price cap.

An escalation clause can also help reduce the back and forth between you and the seller as they get flooded with offers. However, in some cases a seller may still be inclined to issue a counteroffer.

If you decide that an escalation clause might work for you, you may want to consider consulting a real estate attorney before committing to your offer to make sure it's sound and structured correctly.

4. Waive Contingencies

Making your offer as clean as possible can make it more appealing to a seller. In addition, requiring no-contingencies shows that you are a confident and motivated buyer eager to close.

If you do have to include contingencies, try to reduce the number of items where at all possible. This could include selling another home, obtaining specific financing terms, or even getting a home inspection.

In some situations, you can even supplement the need for writing contingencies into the contract. For example, some lenders can fully underwrite your mortgage application ahead of time. This would make you feel confident you will be approved for credit, meaning you don't need to make the offer contingent upon financing.

Similarly, if a seller has a pre-listing inspection report, you might want to consider using that as a reliable resource rather than require your own independent inspection be completed.

So what can Cake do for you to get you the home you deserve. In short, our Cake Cash Pre Approval letter is as good as a cash offer. We also have some of the fastest times to close which is highly motivating for a seller. Our expert list of loan officers can handle the mortgage part so you can focus on finding the home of your dreams.