Step 7: Making an Offer That Works
Now that you’ve found the right home, it’s time to make your move—literally. Making an offer isn’t just about choosing a number. It’s about creating a package that gives the seller confidence while protecting your interests.
What's in an Offer?
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Purchase Price – The amount you’re offering to buy the home.
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Earnest Money Deposit – Typically 1–3% of the purchase price. This shows you’re serious and gives the seller assurance.
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Contingencies – These are built-in protections for you. Common contingencies include:
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Financing: You’re only moving forward if you can get your loan approved.
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Appraisal: The home must appraise for the purchase price or higher.
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Inspection: You have the right to back out or renegotiate if major issues are found.
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Closing Timeline – How long it will take to finalize everything, usually 30–45 days.
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Seller Concessions – You can request the seller to pay part of your closing costs (if allowed by your loan type).
How to Make Your Offer Stand Out
In hot markets, sellers often receive multiple offers. Here's how to strengthen yours:
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Be Pre-Approved – Include an up-to-date pre-approval letter from your lender.
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Shorten Contingency Timelines – This shows the seller you're serious and efficient.
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Limit Unnecessary Requests – Asking for repairs, extras, or furniture can make your offer less attractive.
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Offer Flexibility – Some sellers value a quick close or a longer move-out window. Ask what matters to them.
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Write a Personal Letter – In competitive situations, a heartfelt note explaining why this home is perfect for you can make an emotional connection with the seller.
Understand Negotiation Strategy
Your agent will help you:
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Compare your offer to recent sales in the neighborhood
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Structure the deal to match your financing
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Handle counters and concessions without overextending your budget
Don’t be discouraged if your first offer isn’t accepted. It's common to go through a few rounds of negotiation—or even make offers on multiple homes before one is accepted.
Final Tip: Protect Yourself
Never waive key contingencies (especially inspection or financing) unless you fully understand the risk. A clean offer is strong—but a reckless offer can be costly.
Coming Up: Step 8 – Home Inspections and Appraisals
Once your offer is accepted, it’s time to dig into the details and make sure the home is safe and valued correctly.