Winning an offer means your bid was accepted by the seller. You’re essentially securing the home and moving forward with the purchase process. It’s a big step towards making that house your new home!
But, as many homebuyers learn the hard way—winning the offer can be tough, especially in a highly competitive market. Missing out on the perfect place can feel devastating, but there’s a number of ways to increase your odds of winning without over-bidding.
What are the best ways to win an offer?
- Consider the property. If the home has been on the market for a long time, and there are a lot of similar homes on the market, you may have more flexibility and negotiating power. If the home has a few undesirable features—an older kitchen, for example, or only one bathroom—it might not be getting as many offers. However, if homes are flying off the market and housing inventory is slim, we recommend that you submit a competitive offer quickly if you really love the home.
- Know the market. Sometimes sellers set a list price that’s unrealistic. Sometimes they under-price their listing because they expect people to bid 20% or more higher. So, you need to do your own homework rather than relying on the “sticker price” for the property when considering your offer. Your agent may have great insights here, but not always (sometimes they just want to sell quickly). Explore the sales prices for similar homes in the area to have a sense of what homes are going for, because this will give you a good idea of what other people might be bidding. Think about bedrooms, location, square footage, and features like a pool to find something comparable, and use this as the “fair price” that you want to dial up or down.
- Talk to your lender. You’re probably talking to your agent about what to bid and how to win, but before you make an offer it’s important to talk to your lender. Many lenders don’t take the time to offer this kind of guidance, but we’ve learned that taking the extra time to help people tell the right financial story can be the difference between winning and losing their dream home. For example, we might want to accelerate a close date ahead of other offers (since Tomo Mortgage can close about 2x as fast), which might be exactly what the seller needs. Or, we might be able to look at the seller’s own mortgage history (this is often public info), and understand whether they’re in a position to negotiate. A strong earnest money deposit shows you’re committed, which can help sway the seller in your favor.
- Consider the contingencies. Ask your agent what contingencies are included in the offer to see if there are any that can be removed to make your offer more appealing. Often, sellers want to move quickly to buy their next house—if you can close quickly, you may stand out!
- If you’re in love with the home, escalate. An escalation clause tells the seller that you are placing this offer, BUT, if any other offers have been made, you will raise your offer to beat the highest one. This shows the seller that you are dedicated to winning the offer on their home. However, if you do incorporate an escalation clause in your offer, consider that you may end up paying more than you wanted or even budgeted for the home.
- Remember: Not all pre-approvals are the same. We ask for financial info so that we can give sellers more confidence. In a competitive market, this can make all the difference. You can complete our online pre approval in about 15 minutes here.
How do I place an offer on a home?
Making an offer on a house involves several steps. Begin by determining a fair price based on the home’s value and current market conditions. Prepare a formal offer that includes your proposed price, any contingencies, and specific conditions. This is usually done with the help of a real estate agent. Submit your offer to the seller or their agent and then wait for their response. They might accept, reject, or counter your offer, leading to further negotiations if needed.
What is a counter offer letter?
A counter offer letter is the seller’s way of negotiating with you. It’s essentially their response to your initial offer, suggesting changes to the terms, price, or conditions. It’s a common part of the negotiation process and helps both parties reach a mutually acceptable agreement.
How to make a counter offer?
When you want to make a counter offer, start by carefully reviewing the seller’s original counter offer to your primary offer. Decide what changes you’d like to propose, then draft a new offer with those adjustments. Submit this counter offer to the seller or their agent, and be prepared for further negotiations.
If I win an offer on a home, does that mean it will be mine?
Winning an offer on a home is a big step, but it doesn’t mean the home is officially yours just yet. It means the seller has agreed to your offer, but you still need to go through the rest of the process, like inspections, appraisals, and finalizing your mortgage. Once all that’s done and the paperwork is signed at closing, then the home is officially yours.
Can multiple offers be placed on a home?
Finally, remember that multiple offers can be placed on a home, until the seller accepts one and takes the home off the market. Even after an offer has been accepted, the seller may leave the home on the market, and be open to back up offers, in case the first offer falls through. Laws are different in different states on this, so it’s important to talk to your agent about what to expect.
If you’re ready to start your journey to homeownership, get pre approved with Tomo Mortgage today.
