Finding your dream home is an exciting milestone—but the next crucial step is making a competitive offer and negotiating effectively. In a dynamic real estate market like San Luis Obispo County, submitting a strong offer can be the key to standing out and securing the property you want.

This guide will walk you through the offer and negotiation process, along with tips for making the most of your offer and navigating negotiations with confidence.

Once you’ve found a property you love, the first step is to prepare and submit your offer. Your real estate agent will help you draft an offer that includes essential details such as:

• Offer Price: The amount you’re willing to pay for the home
• Earnest Money Deposit: A good-faith deposit that shows the seller you’re serious
• Contingencies: Conditions that must be met before the sale can be finalized (e.g., financing, inspections)
• Closing Timeline: Your proposed timeline for closing the sale

Your agent will also review recent sales in the area (called “comps”) to help you determine a competitive offer price.

In a competitive market like San Luis Obispo County, it’s common for homes to receive multiple offers. Here are some ways to make your offer stand out to the seller:

Top Tips for a Competitive Offer:

• Pre-Approval Letter: Include a pre-approval letter from your lender to show the seller that you’re financially ready.
• Personal Letter: Write a thoughtful letter to the seller explaining why you love their home.
• Flexible Terms: Be open to adjusting your closing date to fit the seller’s timeline.
• Higher Earnest Money Deposit: Offering a larger deposit can show the seller you’re serious and lower their perception of risk.

Negotiation is a key part of the home-buying process. Once you’ve submitted your offer, the seller may accept, reject, or counter your offer. If they counter, you’ll enter a negotiation phase to agree on the final terms.

What Can Be Negotiated:

• Purchase Price: The seller may propose a higher or lower price.
• Closing Costs: You can negotiate who covers specific fees, such as title insurance or escrow costs.
• Repairs and Credits: If the inspection reveals issues, you can negotiate for the seller to make repairs or provide credits toward the sale.
• Inclusions: You can request certain items, like appliances or light fixtures, to be included in the sale.

Multiple-Offer Situations:

When multiple buyers submit offers on the same property, the seller may ask for “best and final” offers. In this case, it’s important to offer your highest amount while remaining within your budget.

Seller Counters:

If the seller counters with new terms, your agent will help you evaluate the changes and decide whether to accept, counter, or walk away.

Inspection-Based Negotiations:

After the home inspection, you may discover repairs or issues that weren’t visible during the showing. You can negotiate for the seller to either fix the issues or offer a credit to cover the costs.

Negotiating isn’t just about the price—it’s about finding a balance that works for both you and the seller. An experienced real estate agent can make all the difference in this phase by:

• Presenting your offer professionally and persuasively
• Understanding the seller’s motivations to craft a strategic counteroffer
• Knowing when to stand firm and when to be flexible
• Keeping communication clear and respectful to avoid deal-breaking misunderstandings

With the right approach, negotiations can turn a good deal into a great one.

While it’s disappointing, not every offer will be accepted. If your offer is rejected or another buyer’s offer is chosen, here’s what to do:

• Stay Positive: There are always new listings on the market.
• Be Ready to Move Quickly: Your agent can set up alerts for new properties that meet your criteria.
• Review and Adjust: Consider whether you need to adjust your budget, offer strategy, or wishlist for your next offer.

Once your offer is accepted, the next steps include signing a purchase agreement, submitting your earnest money deposit, and preparing for the inspection and closing phases. Your real estate agent will guide you through these steps to ensure the process stays on track.

• Know Your Budget: Stick to your financial plan to avoid overextending yourself.
• Stay Communicative: Keep an open line of communication with your agent to respond quickly to updates.
• Be Prepared for Emotions: Buying a home is exciting but can also be stressful—lean on your agent for guidance.

Submitting an offer and negotiating doesn’t have to be intimidating when you have an experienced real estate professional by your side. With the right preparation, strategy, and support, you can successfully secure your dream home.