Get your offer accepted: Strategies for Massachusetts home buyers

Are you eager to increase the likelihood that your home purchase offer will be accepted? In this post, we’ll share strategies to boost the appeal of your offer and enhance the odds that a home seller in Massachusetts will choose yours. As an attorney and a real estate broker in the Commonwealth of Massachusetts, we’re well-versed in the intricacies of real estate offer and acceptance. However, please note that this is not legal advice. Here are some of the most effective tactics . . .

Have your agent talk with the listing agent

One of the most fundamental tactics to improve the acceptability of your offer is to simply have your call the listing agent before drafting and submitting your offer. A phone call is crucial; your agent shouldn’t just text or email. This direct line of communication will help your agent understand the seller’s needs and wants.

Offers compete not only on price but also on terms. Sometimes, better terms can outweigh a higher price. By understanding what terms are important to the seller, your agent can craft an offer that is more likely to be accepted. For example, knowing whether the seller prefers a fast or slow closing can make a significant difference. Many buyer agents, unfortunately, rush to submit offers without considering these details, putting their clients at a disadvantage. The seller might simply choose another offer that already meets their terms rather than negotiating changes with you!

Human interaction builds trust

Having your buyer agent speak with the listing agent also helps establish familiarity and trust. A constructive conversation can increase the listing agent’s confidence that your agent—and by extension, you—will be good partners in the transaction. Conversely, if your agent is unprofessional or difficult, it can hurt your offer’s competitiveness.

I recently encountered a situation where a buyer agent unintentionally talked his way out of getting an offer accepted. Over a series of phone calls, the agent conveyed that his clients were hesitant and not fully committed to the purchase, making them appear as potential risks for a transaction fall-through. The seller ultimately accepted a competing offer, demonstrating how important professionalism and positive interaction can be.

Increase your earnest money deposit

A simple yet effective way to make your offer more appealing is to increase your earnest money deposit. In Massachusetts, the norm is a $500 or $1,000 deposit with the offer. If you can make a larger deposit—say $5,000 or even $10,000—it signals to the seller that you are serious and committed to the purchase. All earnest money deposits are credited towards the purchase price at closing, so there’s no extra cost to you. This larger deposit can make a significant difference in how your offer is perceived.

Make your best offer initially

When deciding on the price to offer, don’t assume the seller will come back to you later for your highest and best price. In a seller’s market, where homes sell quickly, make your best offer from the start. You might not get a second chance. I’ve seen instances where agents insisted their clients wouldn’t go higher, only to complain later when the property sold to someone else. Always put your best foot forward.

Analyze rejected offers

If your offers keep getting rejected, take the time to analyze why. Have your agent ask the listing agent for feedback. Were you a strong contender or not even close? Understanding where your offer fell short can help you adjust your strategy. Consider incorporating winning terms from successful offers into your next one. For example, you might waive the home inspection, make a larger earnest money deposit, or commit to covering an appraisal shortfall. These adjustments can set your offer apart from the competition.

How a home buyer can get an offer accepted

As a home buyer, getting your offer accepted can be challenging, but it’s not impossible. Here are some focused strategies that can help:

• Get pre-underwritten – If you need mortgage financing, a pre-underwritten pre-approval can significantly enhance your offer’s appeal. Pre-underwriting involves the lender conducting due diligence on your loan application in advance. This allows you to submit a loan commitment letter with your offer, making it almost as strong as a cash offer. I recently had a client who used this strategy effectively in a competitive market, coupling it with a high offer price and a closing date that met the seller’s needs. Their offer was accepted over several others.
• Eliminate contingencies – If you have a home to sell, consider arranging financing that allows you to buy your next home without needing the proceeds from the sale. This eliminates the home sale contingency, making your offer more attractive. This type of financing is known as a cross-collateralized purchase money mortgage. I had a client who successfully used this strategy to get their offer accepted. They arranged the financing, eliminated the contingency, closed on the new home, and then sold their previous home.
• Make clean and tight offers – As a listing agent, I often receive messy and incoherent offers. Dates are inconsistent, and typographical errors abound. While messy offers can sometimes work, they can also cause the seller to favor a clean, well-drafted offer. Before signing, review your offer thoroughly. If anything is unclear, ask your agent for an explanation and consider using clearer language. Vague language, especially in contingency clauses, can lead to significant risks. For instance, a poorly drafted hold-over clause can leave you with the nightmare scenario of owning a home while the former owner refuses to vacate. Always seek legal input for such clauses
• Set realistic escalation clauses – Escalation clauses can be tricky. A common mistake is setting a high dollar cap, which can backfire. For example, an offer of $600,000 with an escalation clause up to $650,000 reveals the maximum you’re willing to pay. A savvy seller might counter at $650,000 even if there are no other offers. Instead, set a smaller cap amount, such as $5,000 or $10,000, and start with a higher initial offer.
• Clarify appraisal and inspection terms – Vague phrases like “buyer waives the appraisal” or “home inspection for informational purposes only” can create confusion. If you need financing, the lender will still likely require an appraisal unless you can pay a significant amount of cash at closing. Instead of saying you waive the appraisal, specify that you will cover a shortfall between the appraised value and the contract price, capping it at a certain amount. Similarly, be clear about home inspections. If you want to limit the inspection contingency, state that the buyer may conduct an inspection but will not seek a price reduction or seller concessions based on the results. This clarity protects you and provides the seller with assurance that the sale price is stable.

Conclusion

Navigating the competitive real estate market in Massachusetts requires a strategic approach. By communicating effectively with listing agents, increasing your earnest money deposit, making your best offer initially, analyzing rejected offers, and being clear in your terms, you can significantly improve your chances of getting your home purchase offer accepted. If you need further guidance or are ready to make an offer, don’t hesitate to reach out to me. I’m Warren Reynolds at Berkshire Hathaway HomeServices Commonwealth in Franklin. You can use the form to contact me or call me at (508) 561-6259. Let’s work together to help you secure the home of your dreams!