1. Pre-Approval Letter (from a lender) A pre-approval letter shows the seller that you are able and qualified to purchase their home. Sellers are typically more willing to work with buyers when they know that the buyer is ready, willing and able to purchase the home. Bonus points if it’s from a reputable local lender who can even call the listing agent, let them know how awesome you are and give them peace of mind about closing on time. More questions on this? Visit this page for more information, or give us a call!

2. Earnest Money (start thinking about if we need to move $ around, sell shares, etc.) When an offer is submitted you will provide earnest money to be deposited with the title company. The amount is usually 1%-2% of the purchase price of the home, and it shows that you’re serious and have some skin in the game. It is credited to you at closing if we move forward, but given to the seller as liquidated damages if the buyer is in default of the contract. The earnest money is deposited within 3 calendar days of the contract being executed (unless the last day falls on a weekend or legal holiday).

3. Option Money/Period. The option money purchases an option period – a negotiated amount of time to terminate the contract for any or no reason. During this time, buyers purchase the option to back out during this time (but sellers cannot). The option money depends on the price and demand of the home, but is usually about $300-$1,000.

   We will schedule inspections during the option period and negotiate any repairs needed or price adjustments in lieu of repairs during this time. If we can’t agree on repairs or price adjustments, you may terminate the contract and get your earnest money back. The option money will be credited back to you at closing if we move forward and purchase the home. And the seller keeps it if we terminate. The option money must be delivered within 3 calendar days of the contract being executed.

4. Love Letter to the Sellers. Sounds cheesy, but they seriously work. We’ve been on both sides many times, and it can REALLY help buyers get their offer accepted. And worst case, the seller doesn’t care, and it doesn’t hurt. A Love Letter to the Sellers can really help set your offer apart from others. Sellers are emotional about their home, many times have raised family, had lots of good memories there, and invested time and $ here. They often want to feel good about the new family taking over their precious house, and want to know you love it just as much and will take great care of it. It doesn’t need to be long or perfect, and hit us up if you want some examples. Here’s the basic format.

• A little about who you are, living the American dream, into animal rescue, veteran, dreaming of a future family, etc)

• Why their home is perfect for you, what you love most, etc. (it’s oftentimes what they love most too) Is it close to your family? Schools, outdoor living, kitchen, etc.?

• Be kind, emotional, acknowledge if your offer is low and just explain that it’s your dream home and you had to try.

Hang in there. When buyers are competing in multiple offer situations, the dynamics of the negotiation shift, but don’t give up. Here’s how they typically work.

Each buyer is asked to submit their best and final offer. Usually, the seller then picks one, signs it, and lets the other buyers know they’ve chosen another offer. So you usually don’t get the opportunity to adjust if you’re close to the best offer.

The differences between your offer and the next could be minor, and not even that important to you, so we want to help you make your offer as strong as possible so you can leave the situation with no regrets.

The Austin area can be competitive, but there are some suggestions that we can share to help make your offer as strong as possible. We’ll try to get as much information as we can about the sellers, and what is most important to them, but here is what we tend to see.

• Price: This is generally the first thing sellers look at, and carries a lot of weight, of course. Offer the highest price you’re willing and able to. It’s hard to pick this number, but you want to pick a number that you can afford, you will feel good if you win it, and won’t regret if you lose it. You’ll know you did your best. We call this your “no regrets” number. If you’re debating “Should we do a bit higher?”, you can afford to, and we’re in a multiple offer situation, the answer is probably yes.

• Appraisal contigency: A high price is great, but if the seller are nervous about if it will appraise, and you aren’t willing to cover the difference, they’re likely to move to a slightly lower offer that is cash or WILL cover appraisal. This really reduces their risk during the contract period. Consider whether you’re willing to adjust your down payment down to free up cash in a low appraisal situation. We can talk to the lender more about what this looks like for you, but try to do a full waiver if possible.

• Owner’s Title Policy: Buyers can also offer to pay this title expense that, historically, has been a seller closing cost. This helps make our offer stronger and give the seller less to cover at closing.

• Closing date: Generally, sellers want to see a closing date sooner rather than later. Be proactive about talking to your lender, getting them docs in advance, and asking how fast they can reasonably close. Less than 30 days is ideal, but only possible if you’re very proactive and working with a strong lender.

• Financing Details: Using a strong local lender that we can personally vouch for can definitely work in your favor. Using a big bank or an out of state lender may hurt your offer. The shorter the period you need to be qualified with your lender on the Financing Addendum, the better. This is another great reason to give your lender docs in advance of a contract. If you can get the lender to give you a full approval in 5-10 days, that will make your offer stronger and better able to compete with cash. Or, if you’re even further along in the process, (and very confident you’ll qualify), you can even consider waiving this contingency entirely.

• Option period and fee: Shorter option period (less than 7 days) and higher option fee ($500 – $1000) will make you more competitive.

• Earnest money: 1% is standard, but if you’re willing to do a larger amount than this (2%+), this will make your offer more competitive.

• Lease back: If the seller is asking for a lease back, offer them a free lease back if you can. We’d let them stay a few days after closing to get moved out, and they can pay a deposit just in case any damage is done during the move out. This is a small concession that typically costs little to no money, but can make sellers very happy depending on their situation.

• Cut the small extras: In a multiple offer situation, we try to avoid pushing for small concessions (furniture, a fridge they don’t want to leave, insisting they get the home professionally cleaned before closing, etc.). While they are nice to have, asking for them might lose you the contract or make us seem high maintenance. So if it’s not a deal breaker” then let’s skip it for now. We can always ask them during the contract period if we get under contract.

If this feels like you’re giving up a lot, you’re not wrong. In these markets, though, supply and demand is such that sellers tend to have more negotiating power. So sellers are getting multiple offers, and our goal is to share the lessons we’ve learned over the years and what buyers do that make them successful in this Austin market. We want sellers to see our offer, know that we’re serious and in it to win it, and give you the best chance at securing your dream home.

And of course, feel free to ask us all the questions. We’re happy to talk you through each item, offer more context, and discuss what is possible given your unique situation.

Let’s go win this.

Once the offer is accepted, We will coordinate inspections with reputable companies. The cost for inspecting a home varies based on size, location, and features. Below is a list of what you can expect. We have a list of our favorites, or you can choose your own.

General Inspection $400 to $600

Applicable add-ons: Termite $80, Sprinkler $50, Septic $200-$400, Pool $80-$250

If the inspector is worried or recommends more specific inspections by a licensed professional, we may choose to have an HVAC inspection $100, plumbing ($75-$300), or foundation inspection ($100-$400) Read more about inspections and the option period here.

We are not attorneys and can’t give legal advice. But we’ll do our best to explain our understanding of the contract.

Please click the videos below for an explanation of some of the most important items on each page of the standard real estate contract in Texas.

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We are always here to answer questions or explain in more detail. Please don’t hesitate to ask if you have any questions at all.