Buying your first home can be exciting and stressful, especially in a competitive market. If you’re facing multiple offers and bidding wars, how do you make sure your offer gets noticed? Here are some key strategies to help you win the home you love.
1. Get Pre-Approved (Not Just Pre-Qualified)
One of the biggest ways to stand out to sellers is by getting pre-approved for your mortgage before you start shopping. A pre-approval letter from a lender shows that you’re a serious buyer with verified finances, making sellers more likely to accept your offer.
- Pre-Qualification: A basic estimate based on self-reported financial details.
- Pre-Approval: A stronger commitment from a lender based on verified income, assets, and credit.
A seller will always prefer a pre-approved buyer over one who is simply pre-qualified.
2. Offer a Strong Earnest Money Deposit
Earnest money is a deposit that shows you’re committed to the purchase. If your offer is accepted, the earnest money goes toward your down payment or closing costs.
3. Make a Competitive Offer—Don’t Lowball
In a seller’s market, offering below asking price can hurt your chances. Work with your real estate agent to make a strong but reasonable offer based on:
- Comparable home sales in the area
- The home’s condition and market demand
- Your budget and loan approval amount
Sometimes, offering over the asking price can make all the difference in winning the home.
4. Consider an Escalation Clause
An escalation clause automatically increases your offer if competing offers come in—but only up to a set limit. For example, if a home is listed at $300,000, you can submit an offer at $305,000 with an escalation clause up to $315,000, increasing in increments of $2,000 if needed. This can help keep you in the game without overpaying.
5. Be Flexible with Closing Terms
Sellers appreciate buyers who can accommodate their timeline. If the seller needs a quick closing, offer to close faster. If they need time to move out, be flexible with the closing date. Small adjustments like these can make your offer more appealing.
6. Write a Personal Letter to the Seller
A well-written letter can help you stand out from other buyers. Share a little about yourself, why you love the home, and how you see your future there. Sellers often want to know their home will go to someone who truly appreciates it.
7. Minimize Contingencies
While contingencies protect buyers, too many conditions can make a seller nervous. The most common contingencies are:
- Financing contingency (protects your deposit if the loan falls through)
- Appraisal contingency (ensures you don’t overpay)
- Inspection contingency (allows you to back out if issues arise)
Consider waiving minor repairs or offering a cap on repair requests to make your offer more attractive.
Winning a home in a competitive market requires strategy, preparation, and flexibility. By getting pre-approved, making a strong offer, and being flexible, you can increase your chances of securing your dream home. Ready to start your home search? Contact Mortgage Financial Services today to get pre-approved!
SPONSOR MFS, NMLS ID 43021 | 1900 W. KIRKWOOD BLVD., SUITE 4300C, SOUTHLAKE, TX, 76092 Mortgage Financial Services, LLC is an Equal Housing Lender. NMLS 43021 (www.mortgagefinancial.com) l 817-601-9010 Interest rates and products are subject to change without notice and may or may not be available at the time of loan commitment or lock-in. Borrowers must qualify at closing for all benefits.
