How to Make an Offer on a House Article courtesy of Zillow

at least countering it — is by offering their full asking price. In a competitive market or a situation where the seller has received multiple offers, you may even need to offer more than the asking price.

Not all homes sell for their initial asking price, and not every home is priced correctly, so before you bust your budget, consider some non-price-related ways to strengthen your offer in a competitive market — your agent should be able to talk to the listing agent about what could make your offer more appealing to the specific seller.

According to Zillow research, the typical U.S. home with a price cut sold for 96.6% of its listing price in March 2021. This number varies from market to market — in some very competitive markets, the typical home will fetch more than the asking price, and in some slower-moving areas, the typical home will fetch less. Your agent should be able to help you gauge market conditions.

Consider an escalation clause

In a multiple-offer scenario, the last thing you want to do is assume another buyer is paying far above the asking price and try to top that imaginary number. You might get the property but you could eventually realize you could have gotten it for less. Rather than overshoot, ask your agent about including an escalation clause, which states that you’re willing to pay a specific dollar amount over the seller’s next highest offer.

For example:

A home is listed for $250,000 and it has three other offers. You submit an offer of $250,000 with an escalation clause that says you’ll pay $1,000 more than the highest offer, up to a maximum offer price of $260,000. Then, if another buyer comes in at $255,000, you’ll automatically offer $256,000 to secure the deal, without going over the maximum amount you’re comfortable spending.

Accommodate the seller’s timeline

If the seller needs or wants to close the sale quickly and you’re sure you want to buy their home, try to accommodate their schedule as much as possible. For some sellers (like those buying at the same time or relocating for work), timeline is even more important than price.

Consider whether to waive or include contingencies

The majority of buyers (80%) include contingencies in their offer, according to the Zillow’s trends report. Contingencies allow you to cancel the sale while protecting your earnest money deposit if you’re unwilling or unable to proceed with the closing process. However, in a competitive market, some buyers risk waiving contingencies to help their offer stand out. For instance, cash buyers might remove the appraisal contingency that is typically required of buyers who purchase their home with a mortgage. Waiving contingencies is considered risky because you could be on the hook for expensive repairs that might have been uncovered in an inspection or you lose your right to back out of the sale if your financing falls through, among other things.

Some buyers also include a home sale contingency, where their offer is contingent on selling the home they currently own. Those buyers typically need to use the equity from a home they’re selling to purchase a new home, but this can make their offer less appealing to a seller who is looking to lockdown a sale that fits their own timeline and priorities.

Put down more earnest money

Earnest money is also called “good faith money” because it’s money you pay upfront to show the seller that you’re serious about buying their home. The earnest money is applied toward your total down payment and closing costs when the sale is completed. Earnest money can telegraph your commitment to the purchase and assure the sellers that you won’t back out without a reason. Real estate experts say you can expect to put down 1% to 3% of the purchase price, but the amount can vary according to local market conditions.

Love letters to sellers could violate antidiscrimination laws

“So-called “love letters,” intended to tug on a seller’s heartstrings, can put buyers and agents at risk of fair housing violations. These letters can include personal demographic information about the buyer, unlawfully swaying a seller’s decision, which can violate the federal Fair Housing Act and other state and local laws against housing discrimination. Writing to a seller also is not a successful strategy for buyers – according to the agents surveyed, love letters are the least important factor for sellers in the current market.

The survey found that in their last few transactions as a buyer’s agent, only about 1-in-10 agents reported always using a love letter (13%).

Bottom line: Avoid writing a letter and focus on making your offer the best it can be.

2502 Country Hills Lane, Highland

Seller is selling "as-is". Seller will consider all o�ers. OUT OF THE ORDINARY! Unique, and “one of a kind” home situated in a tranquil setting in a area of established homes. Designed by a “forward thinking” engineer for e�iciency and preparedness. Watch the leaves turn color from the 12’ x 20’ covered deck or thru the picture windows inside. Choose your heating system (HVAC new in 2019) or the new cylinder wood �red stove ( you can bake in it too!)

Web Id# 22067661

$375,000

6304 Shelton Court, Maryville

This villa boasts dreamy custom �nishes! Open �oor plan is great for entertainingcombined kitchen, dining, and great room with access to covered outdoor patio. 10foot ceilings and engineered hardwoods in the main living area. The kitchen features custom white cabinetry, stainless-steel appliances, corner pantry and large center island with breakfast bar seating. Master bedroom suite has two walk-in closets as well as sizable bathroom. Lower level is a 9-foot pour with lookout windows.

Web Id# 22079688

$580,000

Anna Schuetzenhofer (618) 656-2278

annas@cbbrownrealtors.com

Coldwell Banker Brown Realtors

3709 N Arbor Lake Drive, Edwardsville

Immaculate Custom Built Ranch on gorgeous lot in Arbor Lake oozes comfort, upgrades & light �lled rooms perfect for entertaining! Foyer entry w/board & batten walls & 9' ceilings leads you into a spectacular open �oor plan. Fantastic LR/DR/Kitchen w/10'tray ceiling is a show stopper w/�oor to ceiling stone FP, wood �oors, & chef inspired kitchen: center island w/quartz, cust cabinetry, Kitchen Aid gas cooktop & hood, double wall ovens & under counter microwave.

Web Id# 23031505

$769,900

375 Old Collinsville Road, Caseyville

Wonderful brick villa that backs to the 3rd hole of Far Oaks. The main �oor o�ers foyer entry, 9 ft ceilings, hardwood �oors that run thru out the main �oor, spacious living room that boasts a gas �replace, separate dining room, eat in kitchen with breakfast area that comes with SS appliances, granite counters, staggered cabinets & slider to the covered patio. Main �oor laundry conveniently located o� kitchen with additional cabinets & sink.

Web Id# 23024472

$364,500

1237 Pebble Beach Drive, Caseyville

Custom built executive home in gated golf community at Patio Homes of Far Oaks providing tranquility in a beautiful setting. An abundance of curb appeal w/mature landscaping & privacy galore. On arrival, you are greeted with an arched entry way & elliptical windows to set o� the exterior of the home. Prepare to be impressed as you enter the open �oor plan w/hardwood �oors, 2-way gas �replace, large kitchen, custom cabinets & granite counter tops. Web Id# 23015725

$475,000

192 Quarry Riverfront Road, Golden Eagle

Waterfront! Potential for 4 bedrooms & 4 baths should you �nish the lower level. Built in 2012 this custom home o�ers 2365 �nished sq. ft. on the main level along with a 3-car attached garage 37 x 24 with hobby room. From the foyer entry you'll be impressed with the open living room to kitchen and dining. Gleaming wood �oors, �replace, a wall of windows to enjoy the magni�cent sunsets as well as the deck that spans the entire back of the home. Web Id# 23028198

$414,000

Wendi Mielke (618) 786-2036

wdmielke@gmail.com

Coldwell Banker Brown Realtors

Coldwell Banker Brown Realtors

234 SE 350 Street, Carrollton

Searching for a quality-built home with privacy and storage? This 3-to-4-bedroom, 4 bath log home checks all the boxes. With 3789 total square feet, cathedral ceilings and wood burning stove in the great room. Open kitchen to dining with center island and pantry. The main �oor master bedroom suite is sure to please the toughest critics. Two large upper-level bedrooms and a 3/4 bath with open landing overlooking the great room. Finished walk out basement features family room & bonus room.

Web Id# 23029706

$419,000

Wendi Mielke

(618) 786-2036 wdmielke@gmail.com

1209 White Oak Trail, Godfrey

Absolutely beautiful, immaculate, open �oor plan with vaulted ceilings in the living room, kitchen and breakfast room. The Foyer opens to a vaulted family room w/ gas �replace and lots of windows, dining room and kitchen/breakfast room w/ vaulted ceiling. The kitchen has beautiful maple cabinets, quartz countertops and S/S appliances. A screened in porch o� the breakfast room overlooks a large, multitiered paver patio. Master suite has a handicap accessible master bath.

Web Id# 23027582

$450,000