Making a Strong Offer in a Competitive Market

Making a Strong Offer in a Competitive Market: Why Your Deposit Matters

When you’re submitting an offer that’s not quite at the top of the competition, it’s more important than ever to make the rest of your offer stand out. One of the most effective ways to strengthen your offer is by increasing your deposit, especially the Additional Deposit that’s due after the attorney review period.

Why a Larger Deposit Makes a Big Difference

In today’s market (2025), most properties are selling for 10% or more above the asking price. Sellers are looking at more than just the offer amount, they also care about the strength, commitment, and financial stability of the buyer. A strong Additional Deposit shows the seller that you’re serious and capable of following through.

For example, if you’re offering $500,000, a strong Additional Deposit would be at least 20% of the offer price (in this case, $100,000). And if 20% isn’t feasible, then at the very least, consider putting down the full amount of your intended down payment. This can give the seller greater confidence in accepting your offer, especially when comparing it to a similar one with a minimal deposit.

💡 It’s important to remember that this deposit is still your money. If you change your mind during the attorney review period—or if you’re unable to secure mortgage financing under the contract terms—it’s fully refundable.

What Is the Additional Deposit and When Is It Due?

In New Jersey, the Additional Deposit is typically delivered after attorney review is complete. Although practices may vary, it’s now common for buyers to skip an initial deposit with the offer and instead provide a larger Additional Deposit once the attorney review is finalized.

I can’t stress this enough: submitting the full deposit amount at this stage is a key opportunity to show the seller you’re serious. A strong deposit structure could be your edge and perhaps your only real chance, especially when your offer isn’t the highest.

The Benefits of a Strong Additional Deposit

🔹 Demonstrates Commitment: A larger deposit tells the seller you’re all in.
🔹 Makes Your Offer Stand Out: Especially helpful when competing against aggressive terms.
🔹 Builds Seller Confidence: A strong deposit reassures the seller of your financial readiness.

Conclusión:

Every part of an offer counts. In a competitive or fast-moving market, small details like your deposit structure can make or break a deal. Even if your offer isn’t the highest, increasing your down payment and submitting a strong Additional Deposit, ideally 20% or at the bare minimum the full amount of your down payment, can go a long way in getting that “yes” from the seller.

Still have questions about how to strengthen your offer? I’m here!