With a decline in rent able properties in the US, there have been unprecedented levels of competition when it comes to buying homes. In many areas, almost every home on the market is selling quickly. It often takes just days, or even a couple of hours, before they are sold for full asking price or even more.

With that in mind, the most crucial thing when buying an investment property is to make an outstanding offer above the competition. We have compiled a list of reasons and ways to beat your competition with the right offer.


Even the most attractive offer in the world is completely meaningless if you cannot afford it. One of the biggest fears for a seller is that their property will be removed from the market for a month or even longer, and afterwards, they learn that the agreement failed because the buyer was unable to obtain the financing. If you are a cash buyer, then this step is much easier. Just submit your bank account statement with your rational offer to show that you have the means to stand by that offer.

In the case that you wish to finance the property, a good way to stand out from your competition is to submit a preapproval letter from a reputable lender. This proves that you have the financial means to afford the property. Furthermore, it shows that the lender has completed all the necessary income, credit, and asset verification to prove that they will give you a loan.


When you, as an investor, submit an offer to buy a certain property, it is a well-known practice to submit a “small” deposit to assure your seller that you are a serious buyer. This process is known as earnest deposit. In other words, if you do not have enough money to buy the property or if any unforeseen situation occurs, the earnest deposit is given to the property seller.

The deposit amount depends on the market, but a standard amount is about 1%. For instance, if you are buying a home that costs around $500,000, a reasonable earnest deposit is $5,000.

In case you want to win the seller over right away, consider introducing yourself as a very serious buyer who will offer a much higher earnest check. If the seller expects $5,000, then you may offer $10,000.


Offer to provide a match (or better) against the highest offer on items such as the earnest deposit, total price, closing days, etc. This is a bit riskier because you don’t know what the other offers will be, but it can be an attractive offer to the sellers and set you apart.


To be precise, sellers dislike uncertainty. By showing your financial capability through putting more money on the line, you can reduce the uncertainty in the seller’s eyes. Creating an offer as light as possible while protecting yourself, you can make an outstanding offer in a bidding war. In these situations, you will be expected to show full commitment and genuine interest in the purchase. 

Leave a Comment