Make an Offer in Seattle - What You'll Need

After years of preparation, you may feel like you can take on anything in the Seattle real estate market. 

But the truth is that buying a house in the Emerald City is a trying affair. You may have a home search set up, have the capital saved up, and a budget in order, but there are unseen steps you must prepare for. 

Housing inventory in Seattle is tight right now, and submitting a winning offer requires finesse. As such, to help aspiring homeowners, we devised the below guide detailing what you need to make a competitive offer in Seattle. 

Full backing from a lender 

While cash is king in all markets, that does not mean you are out of luck with a financed offer. The difference between placing a great bid and a winning one often comes down to speed. It is no secret that listings are tight across Seattle. Even in far-flung suburbs, buyers inundate sellers when they list their properties. 

"Gone are the days when a standard pre-approval letter was enough to convince a seller that a buyer is qualified," says Cyndy Stewart, General Manager of Seattle for Prevu Real Estate. "That is why buyers need to be a step ahead by getting a fully underwritten pre-approval. Most sellers choose the most secure offer, and being fully underwritten is the best way to even be considered against an all-cash buyer."

Considering how much it costs to buy a home in Seattle, you should not rush and work with the first lender you meet. Take into account that rates are rising, so make sure to compare and contrast lenders and the home loans they offer. You will want to find a financier that fits your budget. As you interview mortgage brokers, organize your pay stubs, W-2s, and documentation of assets so you are ready for their questions. 

Once you go through the underwriting process, your lender can confidently tell you how much they will lend you. As you wait for your underwritten pre-approval, use the time to put together a shortlist of buyers brokers to augment your search.

An experienced, local agent

The Seattle real estate market is constantly evolving. 

Even if you previously purchased a home, your past experiences might not help when negotiating in the current market. The reality is that most buyers are too busy to keep tabs on the market and lack the local knowledge that comes with selling homes day in and day out. 

Your real estate agent can help you source new homes to look at if you've lost out on a few deals. Additionally, your broker can call up listing agents and tell them about your financing status, cementing your position in a seller's top choices. 

While all these points are critical, the final mile of a deal coming to a close is when emotions run high. That's why you want a buyer’s agent with knowledge of local market practices to expertly negotiate on your behalf. In addition to showing comparable homes and crafting a negotiation strategy, your broker will help you navigate local nuances to avoid losing out on your dream home.

Knowledge of local real estate practices

Some aspiring homeowners lose on a few offers before realizing the value of expert real estate coaching. 

But you can cut out a lot of trial and error by partnering with a buyer's agent that understands the nuances of Seattle real estate. It is possible to win out without a realtor at your side, but you will likely spend more in the long run.

Your buyer’s agent can guide and educate you on the current real estate trends, helping you navigate your deal breakers in a buyer or seller's market. They can help you discern if you should use contingencies for inspections, appraisals, earnest money deposits, or title searches when making an offer on a Queen Anne home. 

Knowing what a seller cares about allows a buyer to focus on the right terms in a strong offer. Your buyer's agent should reach out to the listing agent and ask them candidly what their sellers need. Sometimes closing a deal comes down to who has more money, but you can also sweeten your offer by offering terms like leasebacks to sellers seeking a new home. 

Yet just having an agent is not enough in this market. Often, a sale comes down to a bidding war, and sometimes winning in a bidding war is a matter of choosing the right agent to work with.

Competitive bids empowered by a commission rebate 

Speeding up a transaction with a fully underwritten pre-approval shows you are serious, but sometimes a higher offer wins out. Most homes sell well over asking price in Seattle, and some buyers need a little extra buying power to win in a bidding war.

That is why you want to partner up with the right buyer's agent, as they can unlock more purchasing power with a commission rebate. As you interview agents, grill them on their local knowledge, negotiating skills, and whether they offer commission rebates. 

The practice of rebating isn’t new in the Pacific Northwest but few brokerages offer them. Currently, Prevu Real Estate provides the largest commission rebate in Seattle, totaling up to 1% of a home's purchase price. 

Considering that you will likely pay over the listing price for a Seattle home, having extra funds on hand from a commission rebate can seal a deal. If you know you stand to receive a big rebate check after closing, you are likely to have extra confidence to up your offer price if necessary.

While the boost from a commission rebate helps, you will want to make sure you have enough money ready for ancillary costs that quickly add up.

Have extra cash for closing costs 

Purchasing a home is no easy feat. It requires patience, knowledge, and a healthy bit of luck. 

Inspections and appraisals are expensive, and if a seller accepts your offer, you'll need to have earnest money set aside. Even if you empower yourself with a commission rebate, you must consider how closing costs affect your bid. 

Having extra capital on hand is crucial in a seller's market where homes routinely sell well over asking. Your lender could appraise a house and come back to you with a number lower than your offer to the seller. 

If that happens, will you have enough capital to cover the difference for a larger down payment? Making a competitive offer in Seattle requires looking at many variables, some known and others lurking behind the scenes. The best way to prepare a winning bid in this volatile market is by finding an agent to help you take the next step up the homeownership ladder. 

What is included to make an offer in Seattle?

• Address and legal description of property 
• Purchase price 
• Terms of offer
• Fully underwritten pre-approval
• Proof of funds for all cash offers
• Mortgage contingency / addendums
• Earnest money deposit
• Seller’s disclosure 
• Purchase and sale agreement

Homes for sale in Seattle, WA

Interested in making an offer in Seattle? Browse homes for sale and see how much you can save with Prevu’s commission rebate.