How to Craft a Competitive Home Purchase Offer

If you are looking to buy a home, it is critical that you understand how to make purchase offers that sellers will take seriously. It isn't uncommon for sellers to simply disregard any offers that they don't like without making an attempt to counter. Let's take a look at how you can make competitive offers on homes that you want to buy. 

Offer to Pay in Cash

By making a cash offer, it may be possible to close on a home sale within hours or days of your proposal being accepted. This is because there will be no need to apply for a mortgage and go through the steps related to obtaining financing. Furthermore, since you already have the money to buy the home, the seller can feel more confident that the deal will go through.

Offer More Than the List Price

You may be able to pique a seller's interest by offering to pay more than the list price on the home. However, it is important to set a limit as to how much you are willing to pay. This can prevent you from getting into a bidding war and making offers based on emotion as opposed to how much a home is actually worth. 

Eliminate the Inspection Contingency

It is never a good idea to buy a home before you have had a chance to inspect it. However, you could agree to purchase the property regardless of what you find during the inspection process.

Close the Deal Before Selling Your Current Home

It isn't uncommon for homeowners to sell their current homes before closing on the purchase of their next properties. However, it may be possible to convince a seller to take your deal above any others on the table by removing a home sale contingency. You may be able to use your current home as a rental to help defray the cost of carrying two mortgages. 

Write a Letter

Writing a letter to the home's current owner will do nothing to improve the quality of your offer. However, by sharing your story, you can show this person that you are up to the task of making sure that the property will be in good hands for years to come. In many cases, a human connection can be just as powerful as money when it comes to closing on a business deal.

Whether you are shopping for a home during a buyer or a seller's market, it is important to make purchase offers that sellers will seriously consider. In many cases, your real estate agent will play a key role in crafting your offer.


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