Get That Offer Accepted

Shopping for a new home is an exciting time.  Sorting through the huge number of homes on the market can feel a lot like dating, and when you find that perfect one that's when the stress can set in.  We often caution folks when they find a home that is perfect.  The home you saw today that you want to sleep on and think about will be purchased by the couple that saw it yesyerday and slept on it last night!

We don't like to rush our clients, but sometimes a quick decision is in order.  There is no way of knowing if you will find yourself in a situation where there are multiple offers on the home you want to buy, but there are ways to make your offer stand out in the crowd.  There is more to making an offer than just the amount you are offering to pay.  Following are a couple of things you can do to make your offer more attractive.

Submit a significant earnest money deposit.

Earnest money, by definition, shows the seller the earnest with which you wish to purchase their property. You can think of it as a good faith deposit. While there are no guidelines, most REALTORS® have certain amounts that they would consider “normal” based upon the price range of the property. In the case of multiple offers, there is an opportunity here to jump ahead of your competition.

Providing a larger amount for earnest money will show the seller you are serious about purchasing their home. The earnest money will be held in escrow by the title company and will only be forfeited by the buyer if they breech the contract. Otherwise it is credited to the buyer at the close of the transaction or refunded to the buyer if they decide not to move forward with the sale during their option period.

In many cases I have seen multiple offers on a home, and in some of those cases a higher sales price was passed up because another buyer showed more interest in completing the transaction. A larger amount of earnest money goes a long way to provide the seller an extra level of comfort during the sale of their home.

Minimize or eliminate contingencies.

A contingency on a contract makes people nervous. The seller is looking for a strong buyer with a solid offer for their home. Contingencies make a contract weak, and a weak contract is less likely to be accepted.

Some sellers will accept a contract with a contingency in place, but they will introduce a contingency of their own. Your offer may occupy first position, but they will have the right to accept additional offers. If another acceptable offer is presented they will give you the opportunity to waive or remedy your contingency in a pre-determined amount of time. If this cannot be done the buyer with the contingency will lose first position, and the seller will move forward with the new contract.

More to Follow

We'll follow this post in the next few days with additional strategies that can help put your offer at the front of the pack.  If you, or any of your friends or colleagues, have additional questions or need some advice feel free to call me at 832-722-7731.  I hope to hear from you soon.

Stacy is a licensed REALTOR ® and the team leader of The Jones Team, a group of residential real estate agents who work together to provide exceptional service for their clients. Stacy and his team specialize in the areas west of downtown Houston. These incredible real estate agents can help you buy or sell a home in locations such as Katy, Cypress, far West and Northwest Houston, Richmond, Fulshear, Sugar Land, Spring Branch, Memorial, Spring, Tomball, The Woodlands, and Magnolia. Whether you are in the market to sell a home, buy a home, or just have real estate related questions, Stacy and The Jones Team are available to help.