How to Write a Competitive Offer in Boston’s Real Estate Market
The Boston real estate market is known for its fast pace, high demand, and competitive bidding wars. If you're serious about securing your dream home in this market, you need to craft a strong, compelling offer that stands out to sellers. Here’s how to write a competitive offer in Boston real estate and increase your chances of winning the home you love.
Get Pre-Approved, Not Just Pre-Qualified
Sellers want to see that you are financially ready to buy. A pre-approval letter from a reputable lender carries more weight than a pre-qualification because it shows you've already gone through the underwriting process and have the financing in place. This gives the seller confidence that your offer is solid and unlikely to fall through due to financing issues.
Offer a Strong Purchase Price
Boston’s real estate market is competitive, so lowballing an offer isn’t an effective strategy. Research recent comparable sales (comps) and be prepared to offer at or above asking price, especially if there are multiple bids. Your real estate agent will help you determine a competitive yet reasonable offer based on market conditions.
Consider an Escalation Clause
An escalation clause automatically increases your offer if competing offers come in higher, up to a set maximum. This can help you stay ahead of other buyers without drastically overpaying. However, sellers sometimes prefer clean offers over those with escalation clauses, so it’s best to discuss this strategy with your agent.
Limit Contingencies
While contingencies protect buyers, too many can make your offer less attractive. Consider waiving or minimizing contingencies, such as:
Home Inspection: Instead of waiving it entirely, you can opt for an “informational only” inspection, meaning you won’t request repairs.
Financing Contingency: If you’re confident in your financing, consider limiting or removing this contingency to make your offer stronger.
Appraisal Contingency: If you're comfortable covering the difference in case of a low appraisal, waiving this contingency can make your offer more appealing.
Increase Your Earnest Money Deposit (EMD)
A higher earnest money deposit shows sellers you’re serious. This money goes toward your down payment and reassures the seller that you won’t back out without good reason.
Be Flexible on Closing Timeline
Sellers may have specific timing needs, whether they want a quick closing or extra time to move out. Being flexible with your closing date can make your offer stand out. If possible, work with your agent to find out what timeline works best for the seller.
Make a Personal Connection
A well-written offer letter to the seller can sometimes tip the scales in your favor. Express what you love about the home and why it’s perfect for you and your family. Keep it genuine and concise.
Work with a Local, Experienced Real Estate Agent
Boston’s real estate market is unique, and having an experienced local agent gives you an edge. They can help craft a competitive offer, provide insight on pricing trends, and negotiate on your behalf.
Final Thoughts
In a competitive market like Boston, making a strong, well-structured offer is essential. By getting pre-approved, offering a strong price, limiting contingencies, and working with a knowledgeable real estate agent, you can increase your chances of securing the home you want.
Looking to buy in Boston? Let’s strategize to make your offer stand out! Contact me today to discuss your home-buying goals.