Jeni VanOrnum | Real Estate Insights & Education

You’ve found your dream home. Now comes the nerve-wracking part: making an offer. Here’s how to craft a competitive bid in today’s market.

Know the Market Conditions

Is it a buyer’s or seller’s market? In 2022, inventory remains tight in many areas, meaning multiple offers are common. Understanding local market dynamics shapes your strategy.

Price Isn’t Everything

In competitive situations, these factors matter:

• Earnest money deposit (shows serious commitment)
• Down payment amount
• Financing type (cash and conventional often preferred over FHA/VA)
• Contingencies (fewer makes offers more attractive)
• Closing timeline flexibility
• Personal letter to sellers (use cautiously due to fair housing)

How Much to Offer?

Review comparable sales, consider property condition, and factor in market competition. Your agent should provide a competitive market analysis.

Contingencies to Consider

Common contingencies include:

• Financing
• Home inspection
• Appraisal
• Home sale (if you’re selling)

Escalation Clauses

In competitive markets, an escalation clause automatically increases your offer up to a maximum price if other offers come in higher.

The Appraisal Gap

If the home appraises below your offer price, you might need to cover the difference or renegotiate.

Don’t Get Emotional

It’s easy to fall in love with a home, but stay within your budget. There will be other properties.

Your Strategic Advantage

With my experience negotiating for first-time buyers, I’ll help craft an offer that’s competitive while protecting your interests.