Strategy Tips For Competitive Offers

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Despite what the current real estate market conditions may be there can be multiple offers on a property for sale at any time. In today’s real estate market the buyer demand is still far exceeding the lack of supply for many types of properties. This poses the question of how can you make your offer more competitive? Here are some helpful tactics to consider.

Appraisal gap coverage

If you are in a competitive bidding situation where you offer more money than the asking price, that can be problematic when it comes time for the home to get appraised. What if your offer exceeds the home appraisal value and you intend on financing the home? In this case you can offer “appraisal gap coverage” as a potential remedy. Basically you can offer to pay any overage of the appraisal value in cash if you are able.

Earnest deposit

The amount of your deposit is also an indication of your level of commitment to buying the home in the seller’s eyes. There may be some ways out of the deal should there be issues with the home inspection or similar, but as a rule the more money you put down the higher the risk you are assuming with more skin in the game. From a seller’s point of view this shows that the deal may be more solid.

Home inspection limits

You can do this different ways like rather than a 10 day period for inspection, shorten this to having it done in 3-5 days. Also, once you have completed your inspection you may want to be more accepting of any of the items that are found and deal with them on your end unless they are substantial enough that they cease your interest in buying the home.

Pay your own closing costs

Buying a home involves a lot of money up front for your down payment and for your closing costs. For first time buyers or those who are short of funds on hand it can be common to ask that the seller cover a certain amount of the closing costs. It would be wise to avoid requesting this if entering a competitive bid situation if you can as a seller will most likely go with the deal where they don’t have to complicate anything and front funds.

Escalation clause

This can be one of the best options for a winning dollar offer. You can write an offer stating that you will pay $X dollars more than any other offer up to a certain capped purchase price that you are comfortable with. This can give you a leg up if any of the competing offers are within your desired range.

Be open to the seller’s timing

First, if you can be amenable then tell the seller that you can close in the fastest possible timeframe or that you can work with them on their preferred closing timing. Some sellers may need more time before moving to their next home like if they need to wait until it is built or ready to move in. Finally, if they need to close but remain in the home for a brief period then you could provide short term leased occupancy to them. In these cases you can charge them rent or a fee for them to stay in the home as short term tenants.

Beth Dickerson

Boston, MA

Primary phone
(617) 510-8565
Email
[email protected]
Address
277 Dartmouth St. , 2nd Floor,
Boston, MA 02116

About The Author

One of Boston’s most reputable real estate brokers, Beth Dickerson has achieved more than $2 billion in sales and thousands of successful real estate transactions over her nearly thirty-year tenure. Beth has received national acclaim from the real estate industry and represents some of the most prestigious residents and properties across Massachusetts. Her enduring record as a top producer comes from the intuitive gift of sensing her clients’ needs. She has built a business that is referral-based at its core—a testament to her relationship-driven approach and penchant for exceeding expectations. It is this nuanced expertise that Beth leverages to guide many of her clients-turned-friends through some of the greatest milestones of their lives.

Beth was the proprietor of her own real estate company before joining the residential division of R. M. Bradley in 1993, where she was a top producer for more than a decade. In 2003, she founded her own boutique real estate firm, Dickerson Real Estate, before merging with Gibson Sotheby’s International Realty in 2007. Today, Beth attributes her success to her comprehensive marketing and advertising strategies, exclusive contact network, and unparalleled insight into neighborhoods like Back Bay, Beacon Hill, the South End and Waterfront. With an understanding that no two clients are alike, she works with clients in all phases of life—from first-time buyers to luxury developers, seasoned sellers and beyond. Beth offers clients the resources to aggressively market their property locally, nationally and globally, and her attention to detail, drive and enthusiasm are unmatched.

Beth has appeared in prestigious media outlets including The Wall Street Journal, Mansion Global, The Boston Globe, and Boston magazine, and was prominently featured as Greater Boston’s real estate expert on WCVB Chronicle in 2020. She has had the honor of serving as President of the Downtown Council of the Greater Boston Real Estate Board. For over ten years, she has been a Co-Chair and Committee Member for the Massachusetts General Pediatric Hospital for Children’s Storybook Ball. She serves as a Board Member of the Community Music Center of Boston and a member for the Perkins School for the Blind, Emerald Necklace Park Conservancy, Justine Liff Luncheon, Youth Villages and the Boys & Girls Club of Boston, among dozens of other organizations throughout the Boston area.

A long-time resident of Boston’s Back Bay, Beth was an active member of the community as she raised her two children: she served as treasurer of the Clarendon Street Playground and was an avid supporter of the Hill House Community Center.