How to Make a Strong Offer on a House (the Seller's View)

If you want to know how to make a strong offer on a house, it helps to read your own offer the way the seller and the seller's agent will. They are asking one question: how likely is this deal to close, and on terms we can live with? Price is only part of that answer. Here is how I think about the pieces, from the lender's chair and the seller's chair at the same time.

A higher number is the clearest signal, yet it is not the only one. A seller comparing offers usually looks at the full package: price, how the buyer is paying, how much money is at risk, the timing and the conditions attached. Your agent can tell you what is common in your area and how much room there is in the asking price.

Do not stretch the price past what the home may appraise for. The CFPB warns that it is very risky to buy a home for more than the appraised value. I cover that in my guide to what to expect from a home appraisal. If you are still getting your footing, my article on buying a home in a competitive market covers preparation. This article is about the offer itself.

Does a bigger earnest money deposit make my offer stronger?

It can signal commitment, but it also puts more of your money at risk if you miss a deadline or default. Talk with your agent about what is reasonable and what protections stay in the contract.

What is an option period in Texas?

It is a negotiated period during which, if you paid the agreed option fee on time, you can terminate the contract for any reason with written notice. Buyers commonly use it for inspections.

Is a preapproval letter enough to win?

It helps, but it is one piece. Sellers also look at price, terms, timing and your agent's reputation. The CFPB notes a letter is not a commitment to lend.

Should I waive the appraisal?

Only after a careful conversation with your agent, your loan officer and possibly an attorney about the cash you could bring and the risks. I would not do it just to look stronger.