Offer dates in real estate: What buyers and sellers need to know

When buyers make an offer on a home, they’re hoping that their bid will be accepted. In today’s real estate market, more and more sellers list their homes with an offer date to make comparing offers much easier. As a buyer, you can submit an offer before or after a seller’s offer date.

What is an offer date and how does it affect your buying or selling? Read on to learn more.

What is an offer review date?

An offer review date is when the seller plans to review all offers made on their home. Instead of reviewing offers as they come in, all offers will be reviewed at once, on the same day.

This doesn’t mean an offer will be accepted on this date – just reviewed. It also doesn’t mean that a seller must stick to the date. If a great offer comes in before the offer date they set, they can accept that offer and not review the others. For sellers, an offer date allows them to see all offers at once and compare each one to find the best offer for them.

It can also add urgency for buyers. An offer date gives them the time they need to tour the home, decide whether to make an offer and create their best offer to win a potential bidding war, especially in a hot real estate market.

For sellers: Decide on an offer due date

Many factors may affect when the seller decides when they’ll review all offers. This is also considered the offer end date since sellers might not accept offers that come in after that day.

If you’re a seller who wants to use an offer review date, consider these factors before choosing the date:

• The date your listing agent recommends based on real estate market conditions
• Your ideal moving timeline
• A few days after listing your home
• Enough time to include at least one weekend, so people have time to view the home

For buyers: Should you submit your offer before or after a listing’s offer review date?

As a buyer, you can submit an offer before, on, or after the listing’s offer date. The right option for you will depend on your goals and timeline, market conditions, and how much you want to buy the house.

Submitting before a house’s offer review date: Pros and cons

Remember, sellers don’t have to stick to an offer review date. If they get an offer they can’t refuse before the offer date, they can accept it.

The advantages to submitting an offer before the review date, also known as making a preemptive offer, include:

• You may have less competition, since other buyers may wait until the offer date to submit.
• You could prevent a different buyer from getting their early offer accepted.
• You could try to entice the seller to accept it by putting an expiration date on the offer

Of course, there are disadvantages to making a preemptive offer as well. These include:

• You may need to make an offer the seller can’t refuse for them to accept your offer without considering others.
• You could waste time strategizing an early offer if the seller refuses to review it before the offer end date.
• You may rush your offer without really considering if you want to buy that specific home or really want the sale price or terms you made in haste.

Submitting after an offer review date: Pros and cons

Sometimes buyers consider making an offer after the offer date has come and passed. Here’s why that can be an advantage:

• If the seller didn’t get any offers, buyers making a late offer may get a good deal because the seller is having a hard time selling.
• Your offer won’t be compared with the others.

The main disadvantage to submitting a late offer on the home: The seller may accept one of the other offers before or on the review date and you may lose the home – even if you make the best offer. You could risk losing the home to another buyer who may have submitted their offer on time.

Submitting on an exact offer review date: Pros and cons

There are benefits to submitting an offer on the exact offer date, including:

• You’ll get ample time to put together the offer you want to make, and work with your agent to submit your best offer.
• Gathering insights and information from your real estate agent about early offers, which can give you a competitive edge.

On the other hand, submitting an offer on the exact offer date can be risky. Here’s why:

• The seller could accept an offer before the offer end date and not consider yours.
• While the deadline does give you more time to consider your offer, it may not give you as much time needed to get a pre-inspection.

How to navigate offer dates

Whether selling or buying a home with an offer date, there are ways to prepare for the big day.

Tips for sellers

One of the most important things to remember as a seller is that the offer review date is not a hard date. You are allowed to accept an offer before your designated review date, and you don’t have to accept anything the day you review all offers.

Here are a few other tips for navigating offer dates:

• When setting the date, ensure you’re not picking the same day as other local homes for sale. This could result in fewer offers because buyers are forced to choose.
• If it’s a seller’s market, there may be a high demand in your neighborhood. If your home is reasonably priced, you could receive a flood of offers. Make sure you have enough time set aside to review and consider all offers.
• When reviewing your offers, keep your goals in mind and work with your real estate agent to compare offers and choose the best one.
• When you set an offer end date, that doesn’t mean you’ll be flooded with offers. It’s important that you’re properly marketing your home, setting a realistic listing price and working with a knowledgeable real estate agent who understands the market and your needs.

Finally, remember you may still negotiate the offer you choose, or you may receive multiple offers you like. In that case, you may have to ask all potential buyers to make their best offer.

Tips for buyers

Here are a few tips to follow as the party submitting the offer.

• If it’s a seller’s market and competition is fierce, you’ll want to submit an offer the seller can’t refuse. That may mean offering above asking price, waiving contingencies and seller concessions, and adding an escalation clause, which states you’ll pay a higher price or improve your offer another way if a better offer comes in.
• Make sure you have your preapproval letter before making an offer to show you’re a serious buyer who can secure financing. Make the offer even stronger with a Verified Approval from Rocket Mortgage^®, which provides a full verification of income, assets, and credit.
• Remember that just because the seller reviews the offers on a certain date, they don’t have to accept one on that date. Expect it to take a few days.
• The seller could accept an offer on that day, so be prepared to receive a call – just in case. Starting the day of the offer end date and the days following, be prepared in case the seller wants to counteroffer.
• Work with your real estate agent to make the offer and negotiate. Use their expertise and knowledge of the current market to help you make a strong offer.

The bottom line: Mastering the offer date

Offer review dates are often used when it’s a seller’s market and can be beneficial to buyers and sellers. Review dates provide buyers with more time to review homes and offers. They also allow sellers to review and compare all offers.

Review dates can also drive up competition, which is good for sellers, but not so much for buyers. One of the best things you can do is be prepared for making a backup offer should your first offer on a property fall through.