Making an offer on a rental property is a tremendous milestone!
This is the moment where all your hard work truly pays off. Everything comes together—your time spent analyzing opportunities, understanding the market, and building your dream team— all lead to this pivotal stage.
Making an offer is one thing—getting it accepted is another. So, how can you make sure that your offer stands out from the competition? In this article, you’ll discover what it takes to get your offer accepted. Get ready to learn the key elements of a winning offer, strategies to make yours irresistible, and effective negotiation tactics that will help you close the deal with confidence.
When crafting an offer, it’s important to understand the different levers that you can pull depending on your situation. Each component of an offer can be used to your advantage– if you know how.
A pre-approval letter from your lender confirms that you're financially qualified and ready to buy. It gives sellers confidence in your ability to finance the deal, which can make your offer stand out, especially in competitive situations.
Pro tip: Get pre-approved with Waltz before you make offers. Fill out this form to get started.
The price you’re willing to pay for a property is one of the most important components of your offer. Don’t make an emotional decision—base your offer on the numbers and stick to what supports your investment goals.
It directly impacts your down payment, monthly mortgage, and overall cash flow. It’s also likely the biggest thing that the seller will be looking at. A higher offer means a larger down payment and higher mortgage payments, which can reduce your cash flow if rental income doesn’t cover the costs. The opposite is also true: offering a lower price can reduce your monthly expenses and down payment.
Pro tip: Before making an offer, run the numbers and work backwards—start with your desired cash flow and work up to the price that supports it. This approach helps you stay grounded and investment-focused.
Terms refer to the conditions and requirements you set in your offer, which outline how the deal will proceed. Common terms include contingencies that protect you during the transaction process. Two of the most common contingencies are as follows:
Your offer’s terms can make or break a deal, depending on the competition. If there are multiple offers, sellers may prefer an offer with fewer contingencies. On the other hand, if there’s less competition, including contingencies can help protect your investment.
Pro tip: Context matters. Draft your contingencies with an understanding of the competition.
Believe it or not– dates in a contract are also bargaining chips. These dates outline key milestones and can impact how quickly the deal moves forward. The dates in real estate contracts may include:
Pro tip: Be careful—setting dates too aggressively can lead to delays or risk losing your deposit if you can’t meet them.
Earnest money is a deposit you put down with your offer to show the seller you're serious about buying. It’s typically 1–3% of the purchase price. While norms vary by state and market, a larger deposit can make your offer more aggressive, especially in competitive markets.
Pro tip: If you plan on putting a large earnest money deposit down, be sure that you have contingencies in place to protect it if the deal falls through.
What actually makes a winning offer? It requires a blend of strategy, market awareness, and confidence. Here are some tips to help you make an offer that stands out:
Newsflash: sellers almost always think their property is worth more. That’s why it’s crucial to back your offer with solid comparable sales and current market trends—showing you’ve done your homework. By this point, you’ve already analyzed the deal, so know your max number and understand what it means to go beyond it.
Don't be afraid to walk away if the deal doesn’t align with your financial goals.
Having a reliable lender who can close deals quickly and an experienced real estate agent are crucial to winning deals. There's a lot happening behind the scenes that will require you to trust and lean on your real estate team.
A well-prepared, confident team makes your offer more attractive to both the seller and their agent– it’s an especially great tiebreaker when debating between close offers. It shows you're serious and capable of following through. Sellers and their agents want a smooth, hassle-free transaction, and knowing you have a reliable lender and an experienced agent increases their confidence that the deal will close without issues.
In real estate, no two deals are the same. Each property comes with its own set of circumstances, and understanding the full picture can help you craft a strong, strategic offer. Here are a few key factors to focus on:
Leverage every part of your offer—price, terms, earnest money, and timing—to align with the competition and stand out. By understanding the seller’s motivation and knowing which levers to pull, you can strategically strengthen your offer and improve your chances of getting your offer accepted.
Look at the offer through the lens of the seller. Is it something you’d consider–or is it one-sided? Aim for a scenario where both parties benefit. An example of this is giving the seller their desired price, but in exchange, you get the terms you requested.
If you have an inspection on the property after the initial offer is accepted, you can potentially re-negotiate if the inspection doesn’t go to your liking or it needs more work than you thought. Point out needed repairs or upgrades to reduce the purchase price and factor in future costs.
Walk through scenarios and plan accordingly. For example, in less competitive situations, starting with a lower offer might be an effective form of negotiation. Be ready to adjust, such as increasing your offer or improving terms if the seller counters.
Now, you have what it takes to craft a winning offer. It’s just a matter of time before you own your next rental property!
Think ahead by having a reliable lender who can guide you through the process smoothly and close quickly. With no U.S. credit or income requirements, Waltz makes it easier for international investors to close deals.
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