4 Important Steps For Making An Offer On A Home

3 August 2020
 Categories: Real Estate, Blog


If you find a home that you want to purchase, you are going to have to put in an offer for the home. When you put in an offer, make sure it is thoughtful, in order to increase the chance that your offer will be accepted. 

Step #1: Pick a Starting Price

When it comes to buying a home, you are going to need to pick that price that you are willing to pay if it is accepted, and you want to pick a price that gives you a little wiggle room below your maximum budget in case you need to increase your offer.

When you consider the starting price in your initial offer, you need to consider multiple variables. You need to consider what the home is listed for and how the market is doing. If homes are selling quickly, you may not be able to get a seller to accept a lower price. If homes are not moving that quickly, you may be able to get a seller to accept an offer below the listing price.

Work with your real estate agent to come up with a fair starting offer.

Step #2: Always Add Contingencies

Second, you need to make sure you add contingencies to your offer; don't assume that you will get common contingencies, such as getting the home inspected and appraised, without asking for them. This is where you can also offer other contingencies.

When considering what contingencies to request, think about what the seller needs. Is the seller trying to close fast? Then offer them a quick closing. Does the seller want to stay in the home until their new construction home is ready? Allow for a longer closing or allow the owner to rent until their home is ready.

Make sure your contingencies will protect you and increase a favorable view of you in the eyes of the seller.

Step #3: Add a Letter

You don't have to, but you can also add a letter to the offer. In the letter, you can explain why you want the home and what you envision your life looking like. For a homeowner with a big attachment to their home, a letter that shows you will value the home as much as they did can really help set your offer apart.

Step #4: Deliver the Offer

Once the offer is completed, you are going to need to submit your offer to the seller. Generally, your agent will let the other agent know that you are working on the offer, and then your agent will submit the offer. The seller will then have time to look over the offer before either accepting it or coming back with a counteroffer.

When it comes to making an offer, take your time to put together a timely and thoughtful offer that includes a price you are willing to pay and contingencies that protect you and are enticing to the seller as well. Consider adding a letter to make your offer stand out.

If you need help searching for and purchasing a single-family home, talk to a real estate agent.