15 Tips for Getting an Offer on a Home Accepted

Although there are some signs that things are improving for homebuyers, high demand and low supply have sent home prices skyrocketing. In this seller's market, buyers are at risk of facing bidding wars and not getting offers on properties accepted.

That can be frustrating when you are eager to buy a home. But by following these 15 tips, you can at least maximize the likelihood of getting an offer accepted and being able to buy a property you are interested in.

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Getting preapproved for a home loan shows sellers you are serious about making the purchase and likely to get financing to follow through. Preapproval can also allow you to get final approval more quickly, which can simplify the closing process. Sellers will like all these things and are more likely to accept an offer that comes with a mortgage preapproval letter.

ALSO READ: What Is a Mortgage Pre-Approval Letter?

If you go look at a house, don't sit around for days waiting to decide whether you want to make an offer. Act quickly. Other potential buyers will likely get their offers in soon after an open house or a showing. You don't want to miss out on the chance even to compete because the sellers take another offer before you get yours submitted.

It's helpful to research comparable properties before you begin shopping for a house. That will allow you to determine whether the home is priced fairly and how much you actually want to offer for it.

You could obviously get an offer accepted if you are willing to pay more than the home's market value. However, you likely don't want to take this approach, as doing so could leave you with a house worth less than you paid.

Knowing what the home is worth can help save you from getting caught up in a bidding frenzy that leads to your offer being accepted but leaves you with regrets.

ALSO READ: Is 2022 a Good Time to Buy a Home?

It may be best not to try to lowball when trying to buy a house in a seller's market. Instead, once you've determined what a fair price for the home should be, make an offer for that amount. Sellers likely don't want to spend time haggling when they already have multiple potential buyers who are interested.

If you don't want to offer over the asking price immediately but also don't want to lose out on a home, you may want to consider including an escalation clause in your offer.

An escalation clause makes it clear that you're willing to raise the offer you've made if the seller gets a higher competing offer. For example, you might specify that you're willing to pay $250,000 but that if another person offers more, you would be willing to increase your offer to $255,000 or $260,000.

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Most home offers come with contingencies or preconditions. If the contingencies aren't satisfied, you don't have to buy the house and can get your deposit back. These could include an inspection and appraisal contingency.

Unsurprisingly, contingencies can cause sellers to worry about whether the conditions of the sale can actually be met. As a result, including fewer contingencies gives you a better chance of getting your offer accepted.

You don't want to give up all contingencies. It's important to make sure the house has no serious flaws. But you should be smart about deciding which ones really need to be part of the contract.

ALSO READ: Can You Back Out of a Home Purchase Agreement?

Sellers may be especially wary of home offers conditional upon the outcome of an inspection. Many sellers assume an inspector will find something to quibble about and worry that buyers will then try to reopen negotiations even if only minor issues are discovered.

If you want the best chance for an accepted offer, you can put in writing that you won't ask for repairs or money off if the inspection reveals issues that cost under a certain amount to fix, such as under $5,000.

If you are getting a home loan to buy the house, you might have to include an appraisal contingency, which would allow you to walk away if the appraisal comes back lower than anticipated. Without this contingency, you could be on the hook to buy the house -- even if you can't get financing because of a low appraisal. Sellers don't like appraisal contingencies, though, because they increase the possibility that a deal might fall through.

To reassure them, you could include an appraisal gap clause, essentially stating you'll pay the difference between the appraised amount and the purchase price, up to a certain dollar amount. For example, you might specify that if the appraised value comes in lower than the purchase price, you will pay up to $10,000 above the appraised value, not exceeding the price you originally agreed to.

ALSO READ: How the Appraisal Process Can Derail Your Mortgage Approval

Making a generous down payment can also help you get your offer accepted. It shows you are serious and putting a lot on the line and, thus, less likely to walk away. It also helps sellers to see that you have the cash to complete the deal.

If you can make an all-cash offer, it will go a long way toward helping to get an offer accepted. Home sellers often prefer cash buyers because there is much less uncertainty when a bank isn't involved, and it's faster and easier to close a cash deal.

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If you don't have to move within a specific time frame and want to maximize the chances that your offer will be approved, agree to close whenever the sellers want. Not having to face the pressure to get out by a certain date can make their lives a lot easier, and they may choose your offer over others that specify closing by a deadline.

ALSO READ: Closing on a House: What to Expect

Writing a personal letter to sellers can sometimes convince them that you're the right person to buy their home. This won't typically work if you make a very low offer, especially one far below what other buyers are willing to pay. But it can make a difference if the proposed price is close, as sellers often want to sell to people they believe will love the property as much as they do.

Some sellers are worried about being able to find a new property once they sell -- especially in this competitive market. As a result, if you're willing to accept a reverse contingency, they may be more willing to accept your offer. A reverse contingency means the home sale is contingent on the sellers being able to find a new home to buy.

ALSO READ: Pending vs. Contingent Home Sales: What's the Difference?

If you can make it happen, another option is to allow the sellers to lease the property back if they need to after closing. That could be especially helpful to them if they can't get into their new property quickly enough or can't find a place to move to.

Finally, you should seriously consider working with a real estate agent. Agents know the ins and outs of the real estate market and can help you draft an offer that stands the best chance of being accepted.

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It may require a little patience -- and following as many of these 15 tips as possible -- but eventually, you should find the perfect home for you. And all your hard work and effort will be well worth it when your offer is accepted.

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