How do I know if my offer is competitive?
Is my offer competitive — or a fast rejection? Read these 7 checks and know in 5 minutes.
Why this matters
A competitive offer wins. A weak one wastes time, energy, and money. If you want the home, you must know exactly where you stand. Below are clear, actionable steps you can run through now. Use them to decide whether to push price, tighten terms, or walk away.
7-step checklist to know if your offer is competitive
- Comparable Sales (Comps) in the last 3-6 months
- Pull 3-5 sold homes within the same neighborhood and price range. If your offer is at or above the average sale price of recent comps, it’s competitive.
- Days on Market and Seller Urgency
- Under 10 days usually means multiple offers. Over 30 days gives you room to negotiate. Ask your agent about the seller’s timeline.
- List-to-Sold Price Ratio
- If recent sales closed at 98%+ of list price, offers below list likely lose. Aim to match or exceed that ratio.
- Financing strength
- A pre-approval letter from a reputable lender and a larger deposit show you’re a serious buyer. Cash or high down payment beats weak financing.
- Conditions and Contingencies
- Fewer contingencies (shorter inspection windows, flexible closing) make your offer cleaner. Consider limited conditions if you want to win, but know the risks.
- Offer Structure and Extras
- Bigger deposit, shorter closing, or willingness to cover seller fees can tip the scales. Escalation clauses work when multiple offers are likely.
- Local market signals
- Rising inventory gives buyers leverage. Low inventory and bidding wars mean offers must be aggressive.
How to read the signals fast
- If 5+ signals favor buyers, you can start 3-5% below list and expect negotiation.
- If 5+ signals favor sellers (fast market, high sale ratios, strong comps), start at or above list and keep terms tight.
Real tactics that actually win offers
- Use a strong deposit and quick conditions window.
- Add an escalation clause tied to a max price.
- Offer flexible closing or pay part of the seller’s legal/closing costs.
- Include a simple personal note if the seller is emotional about the home.
When to pull back
If comps are above your budget, inspection reveals major issues, or your financing is not solid — don’t force it. A lost bid is better than a bad mortgage.
Final checklist before you sign
- Comps reviewed? Yes.
- Pre-approval attached? Yes.
- Deposit competitive? Yes.
- Conditions minimized or strategic? Yes.
- Closing date aligned with seller needs? Yes.
If you answered YES to most, your offer is competitive.
Want a professional second look?
I review offers and markets daily. I’ll run comps, assess seller motivation, and craft an offer that wins without overpaying. Contact Tony Sousa at tony@sousasells.ca or 416-477-2620. Visit https://www.sousasells.ca to schedule a free strategy call.
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