How to Make a Competitive Offer in today’s Housing Market
In Dane County and surrounding areas, the housing market is very competitive, and buyers need every advantage to stand out. With homes receiving multiple offers and selling fast, it’s essential to make an offer that grabs the seller’s attention while protecting your interests. Here’s how you can craft a winning bid in Dane County and surrounding areas
Offer a Strong Price (and Consider an Appraisal Buffer)
With demand high and inventory low, homes often sell above asking price. If you’re serious about buying, consider offering a competitive price upfront.
💡 Appraisal Buffer: If you offer over asking price, the home may appraise for less than your offer. An appraisal buffer (offering to cover a certain amount over the appraised value) reassures sellers that the deal won’t fall through if the appraisal comes in lower than expected.
Example: Instead of just offering $10,000 over asking, you can say, “Buyer agrees to cover up to $5,000 of appraisal shortfall.”
- Increase Earnest Money for a Stronger Offer
Earnest money is a deposit that shows sellers you’re serious. In a competitive market, offering higher earnest money (such as 2-3% of the purchase price instead of 1%) demonstrates commitment and can make your offer stand out.
💰 Why it Matters: This money goes toward your down payment at closing, but a higher amount gives sellers confidence that you won’t back out.
- Consider an Inspection Gap or Waiver
While skipping an inspection altogether is risky, some buyers are using an inspection gap or waiver to make their offers more attractive.
✔️ Inspection Gap: Instead of a full contingency, buyers agree only to ask for repairs over a certain amount (e.g., only requesting repairs exceeding $2,500).
✔️ Inspection Waiver: Some buyers waive the inspection contingency entirely but still conduct an inspection for informational purposes.
⚠️ Tip: Always consult with your real estate agent before making this decision.
- Be Flexible with Closing Dates
Sellers in Waunakee might need extra time to move out or prefer a fast closing. Being flexible with your closing date can give you an edge over other buyers.
🏡 Example: Offer a rent-back agreement, allowing the seller to stay in the home for a set period after closing, or match their ideal timeline.
- Minimize Contingencies
The fewer obstacles in your offer, the more attractive it looks to sellers.
🔹 Quick financing approval: Have a pre-approval letter, not just a pre-qualification to prove your financial readiness.
🔹 Waive small contingencies: If possible, avoid requests like seller-paid closing costs or personal property inclusions.
- Write a Personal Letter (Optional, but Effective!)
A heartfelt letter to the seller can make a difference, especially in a community where homeowners often have strong emotional ties to their properties.
✍️ What to Include:
- Why you love the home
- Your connection to the community
- How you envision living there
However, be mindful of Fair Housing Laws and avoid personal details that could be perceived as discriminatory.
Final Thoughts
In the fast housing market, working with an experienced local Realtor can make all the difference in winning your dream home. By implementing these strategies—offering strong pricing, increasing earnest money, using an appraisal buffer, minimizing contingencies, and being flexible—you’ll put yourself in the best position to succeed. These are just a few tips, we have a few other secrets up our sleeve as well :)
Looking to buy a home? I’d love to help you craft a competitive offer and navigate this market with confidence!
Please feel free to reach out anytime. 📍 John Reuter | Integrity Homes | Broker/Owner |📲 608.669.4226 | 📧 john@integrityhomeswi.com
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📍 John Reuter | Integrity Homes | Broker/Owner
📲 608.669.4226 | 📧 john@integrityhomeswi.com
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