How to Make an Offer on a House

February 14, 2025
Aaron Clowes
Home Buyer

How to Make an Offer on a House: A Step-by-Step Guide

Introduction

So, you’ve found the perfect house—congratulations! 🎉 Now comes the big question: how do you make an offer on a house? This is one of the most critical steps in the home-buying process, and getting it right can mean the difference between landing your dream home or losing out to another buyer.

In this guide, we’ll walk you through how to make an offer on a house, from understanding market trends to negotiating with sellers. By the end, you’ll feel confident about crafting a strong offer and taking the next step toward homeownership.

Understanding the Home Buying Process

Before making an offer, it’s important to understand the steps leading up to this moment.

Get Preapproved for a Mortgage – Before you start house hunting, get preapproved so you know how much home you can afford. (Apply HERE)
Find the Right Home – Work with a real estate agent to find a home that meets your needs and budget.
Research the Market – Check recent sales in the neighborhood to determine a competitive offer.
Prepare Your Offer – Once you’ve found “the one,” it’s time to put in an offer.

How to Make an Offer on a House: Step-by-Step

1. Determine Your Budget

Even if you’re preapproved, consider how much you’re comfortable spending each month, including mortgage payments, property taxes, and insurance.

2. Research the Local Market

Look at recent sales of similar homes (called “comps”) in the area to ensure your offer is competitive.

3. Get Preapproved

If you haven’t already, start the preapproval process now! Sellers take offers more seriously when they come from preapproved buyers. (Call or text 916-465-6639!)

What to Include in Your Offer Letter

Your offer letter is a formal proposal to the seller. Here’s what should be included:

✅ Purchase Price – The amount you’re offering for the home
✅ Earnest Money Deposit – A small deposit to show you’re serious (typically 1-3% of the purchase price)
✅ Contingencies – Conditions that must be met before the sale is final (inspection, financing, etc.)
✅ Closing Timeline – A proposed date to finalize the purchase

Including all these details makes your offer strong and clear to the seller.

How to Determine the Right Offer Price

Not sure how much to offer? Here are some key factors:

✔ Look at comparable home sales – Recent sales in the area can give you a ballpark figure.
✔ Consider the seller’s motivation – Are they eager to sell? If so, they may accept a lower offer.
✔ Factor in market conditions – In a seller’s market, you may need to offer more to compete with multiple buyers.

The Role of a Real Estate Agent in Your Offer

Having a real estate agent on your side is a game-changer. They help:

🔹 Analyze recent sales to determine a fair price
🔹 Draft a strong offer with favorable terms
🔹 Handle negotiations if the seller counters

Negotiation Strategies When Making an Offer

So, what if the seller doesn’t accept your first offer? Here’s how to handle it:

🔹 If the seller counters: You can negotiate on price, contingencies, or closing dates.
🔹 If the seller rejects your offer: You can submit a new offer or move on to another home.
🔹 If multiple offers are in play: Consider offering a higher price or reducing contingencies to make your offer stand out.

What Happens After You Submit an Offer?

Once you submit your offer, the seller has three options:

✔ Accept your offer – Congrats, you’re under contract! 🎉
✔ Reject your offer – Time to reassess and possibly make another bid.
✔ Counter your offer – They may ask for a higher price or better terms.

You’ll need to review their response and decide on your next move.

Common Contingencies in an Offer

Contingencies protect you as the buyer. Here are the most common:

✅ Financing Contingency – If your loan doesn’t get approved, you can back out.
✅ Inspection Contingency – If major issues are found, you can negotiate repairs or withdraw your offer.
✅ Appraisal Contingency – If the home appraises for less than your offer price, you can renegotiate.

Removing contingencies can make your offer more attractive, but be cautious!

How to Make a Competitive Offer in a Hot Market

In a competitive market, you may need to go above and beyond to win the home. Here are some strategies:

✔ Waive contingencies (carefully!) – Removing some conditions can strengthen your offer.
✔ Write a personal letter to the seller – A heartfelt letter can help you stand out.
✔ Offer more earnest money – A larger deposit shows you’re serious.
✔ Consider an escalation clause – This automatically increases your bid if other offers come in.

How Long Does the Offer Process Take?

⏳ Timeline:

Seller typically responds within 24-72 hours
If accepted, the home goes under contract
Closing usually takes 30-45 days

If negotiations take longer, expect some back-and-forth before reaching an agreement.

What If Your Offer Gets Rejected?

Don’t panic! Here’s what to do next:

🔹 Ask for feedback – Sometimes sellers will explain why they declined your offer.
🔹 Adjust your offer – If the seller is open to changes, you can resubmit.
🔹 Move on to another home – It may not have been the right fit.

Finalizing the Purchase Agreement

Once your offer is accepted, you’ll:

✔ Sign the purchase agreement
✔ Submit your earnest money deposit
✔ Move into the closing process

Closing the Deal: What to Expect

The final steps before getting the keys!

🔹 Escrow Period – The time between offer acceptance and closing
🔹 Final Walkthrough – Ensuring the home is in agreed condition
🔹 Closing Costs – Fees due before finalizing the purchase

Final Thoughts

Making an offer on a house can be nerve-wracking, but with the right approach, you can increase your chances of getting your dream home.

🔹 Ready to buy? Get preapproved HERE
🔹 Have questions? Call or text 916-465-6639
🔹 Want more home-buying tips? Subscribe to our YouTube channel

FAQs

Can I make an offer on a house without a real estate agent?

Yes, but having an agent can improve your chances of making a winning offer.

How much earnest money should I include?

Typically 1-3% of the purchase price.

What happens if my offer is higher than the appraisal?

You may need to pay the difference or renegotiate with the seller.

Can I withdraw my offer after submitting it?

Yes, but only before the seller accepts it—or if you have a contingency that allows you to back out.

How does the seller decide which offer to accept?

They consider price, contingencies, financing type, and buyer flexibility.

📢 Need mortgage advice? Call or text 916-465-6639 or apply HERE! 🚀