How to write the best offer?

Highest Price and Best Terms

The highest and best offer always wins. An example of what the best offer typically looks like is below:

1. The highest price. You can use an escalation clause to ensure that you outbid other buyers in WA, but most other states' sellers/agents do not take them. We can ask if the seller is open to one, but most of the time, it is a no. We will get as much information as we can for you. Still, in some situations, the information is limited based on the seller's direction to the agent, and sometimes we can get very accurate information for you. If you use an escalation(see below), make sure to have your escalation increments large enough to compel the seller to take your offer. Aim for .75-1% of the purchase price.
2. Be prepared to close quickly. Offer a quick close to show the seller you are serious about purchasing the property.
3. Offer a free rent-back to the seller if they request it. This can be a valuable incentive for sellers who need more time to move out.
4. Make a non-contingent offer. This means you will remove any inspection, appraisal, and finance contingencies. While there are risks associated with removing each contingency, it can make your offer more appealing to the seller. Always check with your attorney regarding any legal questions.
5. Offer a large earnest money deposit. Aim for 5%-10% or more, and consider releasing the earnest money immediately to the seller upon acceptance. This shows the seller that you are serious about the purchase.
6. If possible, offer all cash with proof of funds. If you are getting a loan, provide proof of funds along with your pre-approval.
7. Assume the sewer capacity fee in WA only, and don't ask the seller to pay for a home warranty or termite section 1.

Remember, in a strong market, you often will not get a second chance. The seller will simply take the highest and best offer. So make sure to put your best foot forward with a strong and compelling offer.

Escalation Clause

Typically, escalation clauses are only frequently used in some states, except for WA. However, if you want to use an escalation clause in a state besides WA, we can contact the listing agent to confirm if they will accept it. While you can still submit an escalation clause even if the listing agent does not want to accept it or does not understand it, doing so may weaken your offer.

An escalation clause allows you to state the starting price of your offer and how much you will beat any higher offers by up to a certain price. For example, if your purchase price is $1,000,000 and you set an escalation clause to beat the best offer by $10,000, up to $1,050,000, then if the best offer is $1,025,000, your offer would automatically be $1,035,000.

Typically, the seller would provide us with a competing offer in most situations, except in some new construction.

To increase your chances of getting the home, you can set a high escalation clause to ensure you beat all other offers. However, be aware that if you do this, you should be comfortable with the high number you set, as the clause will only be triggered if there is another offer below yours that pushes it up.