What Makes a Strong House Offer?

When making an offer on a home, you want your offer to be as strong as possible. This means you want to show the seller you are qualified and committed to making the purchase.

You will generally need a competitive offer price and proof you are in a financial position to buy. Typically, sellers also want as few conditions (or contingencies) as possible that could prevent the deal from closing.

This guide explains what's involved in making a strong home offer and how to maximize your chances of the seller accepting it without taking on unnecessary financial risks.

What Sellers Look for When Reviewing House Offers

Here are a few key things that sellers look for when reviewing house offers.

• Risk and potential barriers: Sellers want as few obstacles to closing as possible. This means that an offer that doesn't include home-sale contingencies and that promises to cover appraisal gaps and waive inspection contingencies is likely to stand out (although it’s not recommended to waive contingencies without fully understanding any risks).
• Timing and flexibility: Sellers often prioritize a quick sale. Buyers willing to be flexible with their moving date may have a better chance of their offer being accepted.
• Financial proof and offer strength: Sellers appreciate offers with a fair purchase price and proof you can afford the offer. Once you're preapproved or prequalified for a home loan, including your prequalification or preapproval letter with your offer is also important.

How to Make Your Offer Stand Out

Here are a few ways you can make your offer stand out and increase your chances of success. Remember, it is important to prioritize your own financial security while also maximizing the chances of the seller accepting your offer.

1. Know What Amount Is Reasonable

You must decide how much you should spend on a home based on what you can afford. However, sellers are more likely to accept an offer that is competitively priced based on market price. You don't want to make the highest possible offer, so balance affordability and competitiveness, and always make sure you can afford the monthly payments. Real estate agents typically help homebuying clients find the best offer that meets their budget and is considered strong.

2. Show Proof of Funds and Commitment to Buy

Sellers want to know you will have the money to purchase a home. You may need to provide a proof-of-funds letter and/or proof of prequalification or preapproval to prove you'll be able to close on the home. In fact, some sellers actually require preapproval or prequalification before showing their home.

3. Accommodate Seller Needs and Timeline

Sellers prioritize buyers who are willing to accommodate their timeline for moving. While you don't want to create unnecessary financial or logistical risks for yourself, try to work with your real estate agent to understand the seller's priorities and, when reasonable, offer flexibility around factors such as the closing date, move-out timing, or other terms.

4. Be Strategic with Contingencies

Homebuying contingencies help protect you.

If you waive an appraisal or inspection contingency, you may be obligated to buy the home or lose your earnest money deposit, even if it appraises for less than you offered, or if the inspection shows major problems.

If you waive a financing contingency or a home sale contingency, you'd be obligated to buy or lose your deposit even if you don't get approved for a mortgage or your current home doesn't sell.

Still, including as few contingencies as possible makes your offer stronger, since sellers see fewer barriers to closing. Balance the goal of getting your offer accepted with the risk you're taking on.