Writing a Strong Real Estate Offer
July 2, 2023 · Michael Hellickson
Try one or more of these next time you write an offer for one of your buyers:
- Ask the listing agent how they would like the offer written up, then WRITE IT UP THAT WAY! There is no more powerful way to get your buyer’s offer accepted than to have the listing agent on your side.
- Type everything! Never handwrite offers.
- Minimize contingencies.
To receive your FREE copy of the full strong offer readiness checklist, along with more sample documents, download the PDF by filling out the form below:
STRONG OFFER x TENACIOUS AGENT = COFFEE
COFFEE is for CLOSERS
- Get a pre-approval letter, subject only to appraisal, and clear title. This is CRUCIAL. No other contingencies should be included.
- Go an extra step and get a pre-approval letter from the lender that the listing agent recommends or uses.
- With the buyer’s permission, include a copy of their credit report (with social security number redacted); at minimum, include their credit scores.
- Include high earnest money, 5% or greater if possible. (Also if possible: make the earnest money non-refundable and equal to the down payment.)
- NO inspection contingencies. Do the inspection pre-offer.
- Always include an escalation clause if you know you will be in a multiple-offer situation — or, if the buyers want the home badly enough, simply come in at the max they are willing/able to pay.
- If you decide not to do the earnest money/down payment together, then provide a proof of funds letter with the offer.
- Have a daily delayed closing penalty; if your buyer causes a delay in closing, write in a penalty ($50-100/day or at least .05% of the home’s value) so the listing agent knows you’re serious about getting this deal closed quickly.
- Club Wealth Ninja Strategy: (Make sure this is okay with your broker and lender) Have your buyer sign a buyer agency agreement and PAY the buyer agent commission post-closing. The seller gets to keep the money they had saved for the whole commission!!
- Short closing time frame! Everyone loves to see a short closing, especially the listing agent. Accommodating the seller’s desires is the easiest way to make a strong offer. Note: Ask if the seller wants to occupy the home post-closing.
- Having your buyer write a letter to the seller is a very popular practice. Keep it to 3-5 lines, make sure they use a blue, broad-tipped, ink pen, and have them embellish why the home is a perfect fit, why they love it, and why they are the perfect buyer.
- Include an executive summary with the offer, including price, contingencies, inspection time frame, financing details, down-payment, pre-qual letter, pre-approval, credit scores, and other items that make your offer stronger.
Next time you write up an offer on a home for one of your buyers, try one or two new ideas from this list and see what a difference it makes!