Last Updated: February 2026

Making an offer on a house is one of the most significant financial decisions you'll ever face. Whether you're a first-time home buyer or a seasoned property investor, understanding how to make an offer on a house can mean the difference between winning your dream home and losing out in a bidding war. This comprehensive guide walks you through every step of the home buying offer process, from determining your offer amount to negotiating with sellers and getting your offer accepted.

The home buying process can feel overwhelming, but with proper preparation and guidance from an experienced real estate agent, you can submit a competitive offer that stands out in any market condition. Let's explore the essential steps to making a successful offer on your next home.

Step 1: Get Pre-Approved for a Mortgage

Before you start house hunting or making offers, obtaining mortgage pre-approval is essential. A pre-approval letter from a lender tells sellers you're a serious buyer with the financial backing to complete the purchase.

Why Pre-Approval Matters

Demonstrates financial readiness: Sellers are far more likely to accept offers from pre-approved buyers because there's less risk of financing falling through.

Defines your budget: Pre-approval helps you understand how much house you can afford, preventing you from wasting time on properties outside your price range. Your loan officer will review your finances and provide clear guidance.

Speeds up closing: With much of the underwriting already complete, pre-approved buyers can often close faster than those who haven't started the mortgage process.

Strengthens your negotiating position: In competitive markets, pre-approval can be the deciding factor when sellers choose between multiple offers.

Pre-Approval vs. Pre-Qualification

Don't confuse pre-approval with pre-qualification. Pre-qualification is a quick estimate based on self-reported financial information. Pre-approval involves a thorough review of your credit, income, assets, and employment history. Sellers know the difference, and most prefer offers backed by true pre-approval.

Step 2: Research the Market and Property

Making a competitive offer requires understanding both the local real estate market and the specific property you're interested in. This research helps you determine an appropriate offer price and anticipate potential issues.

Analyze Comparable Sales

Your real estate agent will provide a Comparative Market Analysis (CMA) showing recent sales of similar homes in the area. Look at:

• Sale prices of comparable homes sold in the last 3-6 months
• Price per square foot for similar properties
• Days on market to gauge demand and negotiating leverage
• List-to-sale price ratios to understand how much homes are selling above or below asking

Evaluate Property-Specific Factors

Consider factors that might affect the home's value compared to similar properties:

• Condition and age of major systems (roof, HVAC, plumbing)
• Recent renovations or needed repairs
• Lot size and location within the neighborhood
• School district quality
• Future development plans in the area

Understand Market Conditions

Is it a buyer's market or seller's market? This significantly impacts your offer strategy:

Step 3: Determine Your Offer Price

Setting the right offer price is both an art and a science. Too low, and you'll insult the seller or lose to a competing offer. Too high, and you overpay or face appraisal issues later.

Factors to Consider

Comparable sales data: What have similar homes actually sold for? This is your baseline.

List price accuracy: Is the home priced appropriately based on comps, or is it overpriced or underpriced?

Time on market: Homes that have been listed for weeks may have more negotiating room than fresh listings.

Competition for the home: Are there other interested buyers? Multiple offer situations require more aggressive pricing. When there's heavy competition, you may need to decide how much to offer above asking price.

Seller motivation: Why is the seller moving? Motivated sellers (relocation, divorce, estate sales) may accept lower offers.

Pricing Strategies

Your agent can help you choose the right approach based on your situation:

• Asking price offer: Shows you're serious and often the best starting point in competitive markets
• Below asking: Appropriate when the home is overpriced or has issues
• Above asking: May be necessary in hot markets with multiple offers
• Escalation clause: Automatically increases your offer up to a maximum if competing bids come in

Step 4: Decide on Contingencies

Contingencies are conditions that must be met for the sale to proceed. They protect your earnest money deposit by giving you legal ways to exit the contract if problems arise.

Common Contingencies

Inspection contingency: Allows you to have the home inspected and renegotiate or walk away if significant issues are found. This is one of the most important protections for buyers. Learn more about home inspections and why they matter.

Financing contingency: Protects you if your mortgage is denied. Without this, you could lose your earnest money if financing falls through.

Appraisal contingency: Ensures the home appraises at or above the purchase price. If it appraises low, you can renegotiate or exit.

Home sale contingency: Allows you to back out if you can't sell your current home. This weakens offers significantly in competitive markets.

When to Waive Contingencies

In highly competitive markets, some buyers waive contingencies to strengthen their offers. This is risky and should only be considered if:

• You have significant cash reserves to cover potential issues
• You've done thorough research on the property's condition
• Your agent advises it based on specific circumstances
• You fully understand the financial risks involved

Step 5: Determine Your Earnest Money Amount

The earnest money deposit shows the seller you're serious about buying. The amount can influence how attractive your offer appears.

Typical Earnest Money Amounts

• Standard markets: 1-3% of the purchase price
• Competitive markets: 3-5% or more to stand out
• Lower-priced homes: Flat amounts ($1,000-$5,000) may be acceptable

For a $400,000 home, earnest money typically ranges from $4,000 to $12,000. Your agent will advise on competitive amounts for your specific market and property.

For detailed guidance on earnest money amounts and how to protect your deposit, read our complete guide on earnest money refunds.

Step 6: Write and Submit Your Offer

Your real estate agent will prepare the formal purchase offer, but understanding what's included helps you make informed decisions.

Essential Offer Components

Your agent will prepare an offer letter (also called a purchase agreement) that includes all the key terms. When putting an offer on a home, these are the essential elements:

• Purchase price: Your offered amount for the property
• Earnest money amount: How much you'll deposit in escrow
• Down payment: Your intended equity contribution at closing
• Financing terms: Loan type, amount, and pre-approval details
• Contingencies: Inspection, financing, appraisal protections
• Closing date: When you want to complete the purchase
• Expiration date: When your offer expires (typically 24-72 hours)
• Items included: Appliances, fixtures, or personal property included in sale
• Seller concessions: Any credits toward closing costs or other expenses you're asking the seller to cover

Making Your Offer Stand Out

Beyond price, several factors can make your offer more attractive:

Flexible closing date: Accommodating the seller's preferred timeline shows cooperation.

Larger earnest money: Demonstrates strong financial commitment.

Clean offer: Minimal contingencies and requests signal a smooth transaction.

Quick response times: Commit to fast inspection and review periods.

Proof of funds: For cash portions or if making an all-cash offer, show bank statements.

Step 7: Negotiate with the Seller

Most real estate transactions involve some negotiation. Understanding common scenarios helps you respond effectively.

Possible Seller Responses

Acceptance: The seller agrees to all terms. Congratulations—you're under contract!

Counteroffer: The seller proposes different terms (price, closing date, contingencies). You can accept, counter back, or walk away.

Rejection: The seller declines your offer outright. You may submit a new offer or move on to other properties.

Multiple counter: In multiple-offer situations, the seller may counter all buyers, asking for "best and final" offers.

Negotiation Strategies

Successful negotiation between buyers and sellers requires strategy and patience. If your first offer isn't accepted, don't despair—most deals involve some back-and-forth:

• Know your limits: Set a maximum price you won't exceed before negotiations begin
• Focus on terms, not just price: Closing credits, repair allowances, or included items can bridge gaps
• Stay emotionally detached: Don't let desire for the home cloud your judgment
• Respond quickly: Delayed responses can frustrate sellers and jeopardize deals
• Be prepared for a higher offer: In competitive situations, you may need to increase your bid
• Trust your agent: They negotiate real estate deals regularly and know what works

Step 8: Open Escrow and Complete Due Diligence

Once your offer is accepted, you're officially under contract. The clock starts ticking on your contingency periods.

Immediate Next Steps

1. Deposit earnest money: Usually due within 1-3 business days of acceptance
2. Schedule home inspection: Book early in your contingency period
3. Finalize mortgage application: Provide all required documentation to your lender
4. Order title search: The title company reviews ownership history
5. Get homeowners insurance quotes: You'll need a policy before closing

Understanding the escrow timeline helps you stay on track. Read our guide on how long escrow takes for detailed information.

Home Inspection Tips

The home inspection is your opportunity to discover issues before you're committed. When reviewing inspection results:

• Attend the inspection if possible
• Focus on major structural and system issues
• Get repair estimates for significant problems
• Negotiate repairs or credits based on findings
• Know when to walk away if issues are too severe

What Happens After Your Offer Is Accepted

From accepted offer to closing typically takes 30-45 days. During this time:

• Week 1-2: Inspections, appraisal ordered, loan processing
• Week 2-3: Appraisal completed, inspection negotiations finalized
• Week 3-4: Loan underwriting, title cleared
• Week 4-5: Final loan approval, closing scheduled
• Closing day: Sign documents, transfer funds, receive keys

Common Mistakes to Avoid When Making an Offer

Frequently Asked Questions

Work with an Experienced Real Estate Agent

Making an offer on a house involves numerous strategic decisions that significantly impact your outcome. When you want to buy a home, a good real estate agent or broker can make all the difference. When you're making an offer, an experienced buyer's agent provides:

• Deep knowledge of local market conditions, home sales trends, and pricing
• Access to comprehensive comparable sales data
• Expert negotiation skills with the seller's agent, honed over many transactions
• Guidance on contingencies and contract terms
• Coordination of inspections, appraisals, and closing

Learn how to choose the right realtor for your home purchase.

The Bottom Line

Making an offer on a house requires careful preparation, strategic thinking, and often some negotiation. By getting pre-approved, researching the market, determining a competitive price, and including appropriate contingencies, you position yourself for success in any market condition.

Remember these key points:

• Preparation is everything: Pre-approval and market research before making offers
• Price strategically: Base your offer on data, not emotion
• Protect yourself: Include contingencies that make sense for your situation
• Move quickly: Be ready to act when you find the right home
• Trust the process: Work with experienced professionals who can guide you

With the right preparation and guidance, you'll be well-equipped to make competitive offers and secure the home you've been looking for.