Learn how to use creative terms to negotiate a better offer for your first-time home buyers in a competitive market. Examples include rent-back agreements, contingencies, earnest money deposits, personal letters, and closing dates.

Show me the Money! It's that simple if you want that house be willing to meet the Seller at asking price or if able make the offer higher than asking. You can get noticed by adding an escalation clause that simply says we will match or beat any offer by (Blank Amount ) the Seller receives. The inspection period and notices are the Sellers biggest worry so adding to the contract for inspections to be done for the Buyers Knowledge only and/or Buyer will not ask for the Seller to repair of replace any items on the inspection will get you notice and leave out asking for a home warranty. Stand out and offer to pay for a portion of the Sellers Closing cost such as Title company fees combined with a quick closing date could seal the deal.

How can you make your clients' offer stand out with creative terms?

In a competitive real estate market, making an offer that stands out from the crowd can be challenging. You may have to compete with multiple buyers, cash offers, or higher bids. How can you make your clients' offer more appealing to the seller without breaking the bank? One way is to use creative terms that can sweeten the deal and show your clients' flexibility and commitment. Here are some examples of creative terms that you can use to negotiate a better offer for your first-time home buyers.

1 Offer a rent-back agreement

A rent-back agreement is a clause that allows the seller to stay in the property for a certain period of time after closing, usually in exchange for a fee or a reduced purchase price. This can be a win-win situation for both parties, as the seller can avoid the hassle of moving twice or finding temporary housing, and the buyer can show their goodwill and willingness to accommodate the seller's needs. A rent-back agreement can also give the buyer some leverage to negotiate other terms, such as contingencies or closing costs.

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Micah Walk

Luxury Real Estate Broker - The Carrie McCormick Group
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To make clients' offers stand out with creative terms, I focus on flexibility and added value beyond price. This might include a rent-back agreement if the seller needs time to move, or offering a quicker closing if the seller is in a hurry. Paying in cash, if possible, is always attractive. I also suggest covering unusual closing costs or waiving certain contingencies, while ensuring my clients are still protected. Personal touches, like a heartfelt letter explaining why the home is perfect for the buyer, can resonate emotionally with sellers. Each offer is tailored to the seller's unique situation, making it as appealing as possible in this competitive market.

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2 Waive or shorten contingencies

Contingencies are conditions that must be met before the sale can be finalized, such as home inspection, appraisal, financing, or title. While contingencies are important to protect the buyer's interests, they can also make the offer less attractive to the seller, who may prefer a faster and smoother transaction. By waiving or shortening some of the contingencies, you can make your clients' offer more appealing and show their confidence in the property and their financing. However, you should also advise your clients of the risks and consequences of waiving or shortening contingencies, and make sure they are comfortable with the decision.

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Megan Carew

Real Estate Agent
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Show me the Money! It's that simple if you want that house be willing to meet the Seller at asking price or if able make the offer higher than asking. You can get noticed by adding an escalation clause that simply says we will match or beat any offer by (Blank Amount ) the Seller receives. The inspection period and notices are the Sellers biggest worry so adding to the contract for inspections to be done for the Buyers Knowledge only and/or Buyer will not ask for the Seller to repair of replace any items on the inspection will get you notice and leave out asking for a home warranty. Stand out and offer to pay for a portion of the Sellers Closing cost such as Title company fees combined with a quick closing date could seal the deal.

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3 Increase the earnest money deposit

The earnest money deposit is a sum of money that the buyer puts in escrow to show their seriousness and commitment to the purchase. The earnest money deposit is typically 1-3% of the purchase price, but it can vary depending on the market and the seller's expectations. By increasing the earnest money deposit, you can make your clients' offer more attractive and demonstrate their financial strength and stability. The earnest money deposit is usually refundable if the sale falls through due to a contingency, but you should also explain to your clients the scenarios in which they could lose the deposit, such as breach of contract or failure to close on time.

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4 Write a personal letter

A personal letter is a written message from the buyer to the seller, expressing their interest and appreciation for the property, and explaining why they want to buy it. A personal letter can help your clients' offer stand out by creating an emotional connection with the seller, and highlighting their unique qualities and motivations. A personal letter can also show the seller that your clients are not just looking for a house, but a home. A personal letter should be sincere, concise, and respectful, and avoid any negative comments or criticism of the property or the seller.

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Matthew Fleming-Duffy, FCMI

We help HNW clients with their borrowing requirements for property purchase and refinance | Later Life Finance | Green Finance | UK-wide coverage
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Writing a personal letter, or indeed ensuring the seller knows of your personal circumstances, can help in securing your dream property. The sale and purchase of a home is a very emotional experience for many people, so personalising your communication can really go some way to help your offer.

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5 Be flexible with the closing date

The closing date is the date when the ownership of the property is transferred from the seller to the buyer, and the funds are exchanged. The closing date is usually determined by the contract, but it can also be negotiated between the parties. By being flexible with the closing date, you can make your clients' offer more appealing and show their willingness to work with the seller's timeline and preferences. For example, you can offer to close sooner or later, depending on the seller's needs, or to adjust the closing date if there are any delays or issues. Being flexible with the closing date can also help you avoid any potential conflicts or disputes that could jeopardize the sale.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Mia Burch

2022 DE Realtor of the year, 2021 President at Delaware Association of Realtors(DAR)
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I find it helpful especially estate sale or elderly sellers, to offer to leave the personal properties that they don’t want or offer to get rid of contents. That terms in contract won the house twice past 3 months

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How can you make your clients' offer stand out with creative terms?

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1 Offer a rent-back agreement

2 Waive or shorten contingencies

3 Increase the earnest money deposit

4 Write a personal letter

5 Be flexible with the closing date

6 Here’s what else to consider

Working with First-Time Home Buyers

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