How to make your offer stand out in a competitive property market

Posted On Thursday, 16 January 2025 14:02 Published by
Rate this item
(0 votes)

If you’re looking to purchase a home in a sought-after suburb or estate, securing the property you’ve set your sights on can be challenging and, in order to increase your chances of success, you need to make your offer stand out from the crowd.

This is according to Cobus Odendaal, CEO of Lew Geffen Sotheby’s International Realty in Johannesburg and Randburg, who adds: “When multiple buyers are interested in the same property, sellers are not only looking for the highest bid, they’re also considering other factors like the buyer's financial stability, the ease of the sale, and their willingness to close the deal quickly.

“A compelling offer goes beyond numbers; it also demonstrates your reliability, flexibility, and serious intent.”

Odendaal says that by employing a few key strategies, you can enhance the attractiveness of your offer and position yourself as the ideal buyer:

1. Start with a Strong First Impression

First impressions matter, especially in a competitive market. When you make an offer on a property, it’s not just about the price; it’s about how you present yourself as a buyer. A strong first impression can set you apart and make the seller more inclined to accept your offer.

Additionally, hiring an experienced agent who knows the local market can give you a significant edge as they can help you craft a compelling offer, understand local pricing trends, and, very importantly, negotiate effectively on your behalf. Additionally, a reputable agent can vouch for your reliability and credibility, which can reassure the seller form the get-go.

2. Offer a Competitive Price

In a hot market, one of the most straightforward ways to make your offer stand out is to submit a competitive price. Sellers are often motivated by the highest offer, but be careful not to overbid to the point where the price exceeds the home’s market value as this could put you in a difficult financial position later, especially if the market cools down after your purchase.

  • Know the Market Value

To make an informed offer, it’s important to have a solid understanding of the property’s market value. Your real estate agent can provide comparable sales data (known as “comps”) for the area to help guide your decision. Additionally, taking into account the home’s condition, location, and any improvements will help you determine a fair offer.

  • Consider Offering Above Asking Price

If the home is in high demand with several interested buyers, offering slightly above the asking price can increase your chances of success. However, do this only if you're comfortable with the price and after doing thorough research to ensure you’re not overpaying.

3. Make Your Offer Clean and Simple

One of the most effective ways to make your offer stand out is to present a clean, straightforward offer with as few contingencies as possible. A contingency is a condition that must be met for the deal to go through, such as securing financing or passing a home inspection and, while they are standard in property transactions, reducing them to the minimum makes your offer less complicated and more attractive to the seller.

If possible, consider removing non-essential contingencies. For example, if you are confident in your ability to secure financing, you could offer a non-contingent cash offer or a pre-approved bond. Additionally, if you're in a situation where you’re comfortable with the property’s condition and don’t foresee any major issues, you might opt for a home inspection contingency waiver. This shows the seller that you are serious and prepared to move forward quickly.

However, be careful not to remove contingencies that could leave you financially exposed. For instance, if you’re buying a property in an older neighbourhood or with potential structural issues, skipping a home inspection may not be wise. Always strike a balance between making your offer appealing and protecting your own interests.

4. Offer a Flexible Transfer Timeline

Flexibility on the transfer date can be a key factor in swaying the seller. Some sellers may want to close the deal quickly, while others may need more time to find a new home.so offering flexible terms shows that you’re willing to work with the seller’s timeline.

If you have the ability to be flexible with your move-in date or offer a quicker transfer, it may make your offer more attractive as a seller may prioritise buyers who offer convenience and certainty over those whose offers come with conditions that delay the process.

5. Secure Pre-Approval for Your Bond

Getting pre-approved for a home loan is one of the most effective ways to strengthen your offer as it assures the seller that you have the financial means to follow through on your offer. This can be a powerful tool in a competitive market where sellers are wary of deals falling through due to financing issues.

Pre-approval not only strengthens your offer but also gives you a clearer picture of how much you can afford and, importantly, it also helps you move quickly if you’re competing against multiple buyers.

6. Be Ready to Act Fast

In a competitive market, properties can sell quickly, sometimes with multiple offers in a matter of days so being prepared to act fast is essential.

  • Move Quickly with Your Offer

If you find a property you’re interested in, don’t hesitate to make your offer. Your agent can help you submit an offer promptly after a viewing to demonstrate your enthusiasm and readiness.

  • Offer an Earnest Money Deposit

Submitting a deposit can show the seller that you’re serious and committed to the purchase. This is typically a small amount of money (1% to 3% of the purchase price) held in escrow as a sign of good faith.so if you back out of the deal without a valid reason, the seller keeps the deposit. Offering a higher deposit than usual can give the seller peace of mind that you’re financially stable and unlikely to back out of the sale.

“If you adopt these strategies and work closely with a skilled and knowledgeable agent,, you will generally have a better than average chance of pipping your competitors at the post and securing the property,” concludes Odendaal

Last modified on Thursday, 16 January 2025 14:25

Most Popular

How to make your offer stand out in a competitive property market

Jan 16, 2025
If you’re looking to purchase a home in a sought-after suburb or estate, securing the…

One of Cape Town’s most iconic historic properties is for sale for the first time in many years.

Jan 16, 2025
Trovato House
Priced at R45 million thro ugh Pam Golding Properties, Trovato House is an impressive…

Exemplar’s December retail trade exceeds expectations

Jan 26, 2025
Theku Mall Aerial
With the 2024 Festive Season behind us and Back-to-School season well underway,…

The Cultural Blueprint: How to Make Your Office Not Just Look Good, But Feel Right

Jan 16, 2025
Jess Moyer Cushman & Wakefield BROLL
When it comes to designing office spaces, one size definitely does not fit all –…

Somerset Mall Embarks on a Multimillion-Rand Expansion Project

Jan 26, 2025
Somerset Mall
Major retail destination set to launch a new era of retail and leisure by November 2025…

Please publish modules in offcanvas position.