Buying a home can be a minefield of challenges—particularly in a competitive market—and making an offer on a house is no exception. From rising prices to bidding wars, it can be tough out there for a homebuyer. But remember, sellers have one goal in mind: a clear path to selling their home. And as luck would have it, there are things you can do to make your offer as strong as possible.

Money, Money, Money

It shouldn't come as a surprise that a higher offer will usually catch a seller's eye. A cash offer can be just as enticing. We know those two tactics aren't realistic for everyone, so let's talk about an alternative course of action.

One of the main things that you can do to strengthen your offer is to make it clear it's a serious offer from an interested buyer. A seller's market isn't the place to bargain hunt, so don't go lower than the asking price. If you can, make an offer that's a little above asking. You don't need to go crazy, though—sometimes an offer that's just $2000-3000 more than asking is enough to get the seller's attention.

Leaving yourself some "wiggle room" in your offer can also indicate your seriousness, so don't put it in an offer that maxes out the amount you were loaned. Doing so could communicate to the seller that 1) you won't be able to participate in any future negotiations, and 2) if interest rates go up, you may no longer qualify for the loan amount—meaning you'll have to back out of the deal, leaving them back at square one.

Show Pre-Approval

Sellers tend to give preference to buyers who are pre-approved because they know that when it's time to close, you'll have that money in hand.

Just make sure that you're pre-approved, not pre-qualified. A pre-approval letter confirms that you'll be able to borrow a set amount of money, while a pre-qualification letter is just an estimation of how much you could borrow. Pre-approval takes a little longer to get, but it's a worthwhile investment in a competitive market.

Up Your Earnest Money

Earnest money is basically a good-faith deposit toward the purchase of a home. Most home buying transactions involve earnest money, with the typical amount for a deposit being between 1% and 3% of the purchase price. However, if you're looking to stand out in a competitive market, you could always bump up that amount to 5% or higher. Just keep in mind that if you decide to back out of the purchase, you may or may not be able to get that deposit back.

Waive Contingencies

A contingency is a clause in an offer that sets conditions for the purchase. For example, you could include a clause that your purchase of the home is contingent on the results of a home inspection.

Many kinds of contingencies are typically standard in home purchase offers, so waiving some of them can show the seller that you're willing to make a path toward the purchase that's as obstacle-free as possible. You'll want to be careful, though, as waiving certain contingencies could end up hurting you in the long run. Your agent can help you decide which contingencies need to stay and which are OK to let slide.

Add an Escalation Clause

In a hot market, you may be concerned about getting outbid on your dream home. To address that, you can always add an escalation clause to your offer. An escalation clause sets a maximum amount and then automatically increases your bid if another buyer outbids you. Not only will this help maintain your peace of mind, but it can also indicate to the seller that you're committed to making the purchase happen, even if a bidding war breaks out.

Pay the Seller's Closing Costs

With a home purchase, both parties have closing costs that they're responsible for. Sellers usually pay fees like agent commissions, transfer tax, and title insurance, among others. Offering to cover some—or all—of the seller's closing costs can be a good way to sweeten the deal for them.

Be Flexible with the Timeline

Every home purchase has its own timeline. Typically, a home closes within 30 to 45 days, but the sellers may want to move the closing date up or back, depending on their situation. If you're able to be flexible, making an altered timeline part of your offer can help you stand out. For some sellers, it might even be more important than a higher offer!

When you're hoping to make your home offer stand out in an overcrowded market, a great agent can make a huge difference. Someone who's knowledgeable about both real estate trends and the local market can help you craft a strong offer. And with an agent from Better Homes and Gardens Real Estate The Masiello Group, you'll have your best shot at getting the home of your dreams.

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The Masiello Group is a second-generation family company that has been a trailblazer in New England real estate since 1966. With now more than 35 offices throughout northern New England, we're the largest residential real estate firm north of Boston to offer a complete suite of home services, including buying, selling, mortgage, title, insurance, relocation, and more.

Our agents are eager and excited to meet your real estate needs!

You can find more information on today's market and other real estate trends by reading our blog weekly at https://www.masiello.com/news-and-updates/.