How do I write an offer that gives me an advantage?

When it comes time to put the proverbial “pen to paper” and write an offer, Realtors have to take into consideration what is important to the buyer. The caveat is writing an offer that gives the buyer an advantage. Asking certain questions to the listing agent can help structure an advantageous offer.

Although not “required” to place an offer, a letter with strong wording from a mortgage broker helps ease the concerns of some sellers and their agent. If the offer is an all cash offer, a letter/ proof of funds with the buyer’s name on the letter should be a part of the offer package you submit. An all cash offer typically is deemed “stronger” because the buyer does not have to go through the lending process.

Do we know if the seller has to purchase another home? How fast the seller wants to move? How fast can the buyer close? Speaking with the buyer’s mortgage broker will give you those answers. All this knowledge helps set expectations when drafting an offer. If the buyer and seller can close quickly that is great, but if one or the other needs more time, that that can be negotiated. Taking a step back, having the up- front knowledge about your buyer and asking about the seller’s ability will help the agent draft the offer to meet both parties’ expectations.

Contingencies in the offer also play a factor to the “strength” or how “advantageous” the buyer’s offer is considered. When representing a buyer, we always recommend a building inspection and this typically is the largest contingency. There are others as well. Appraisal contingencies to assure the home will appraise at or above the purchase price, Attorney review contingencies if the buyer would like, mortgage approval contingencies if not a cash offer and other potential inspection items depending on the home itself.

Overall, it is important the agent knows the buyer’s needs, wants and desires when drafting an offer.