Making an offer on a house is one of the most exciting—and nerve-wracking—steps in the home buying journey. It’s where strategy meets opportunity. This blog is the next installment in our Home Buying 101 series, following “How to Find a Home That Fits Your Life and Budget.” In this guide, we’ll walk you through what to know before making an offer on a house, so you can act with confidence and avoid costly missteps.

Before you write an offer, you need to understand what similar homes are selling for in the area. This is where your real estate agent can help by providing a comparative market analysis (CMA). A CMA helps you make an informed offer. It shows what similar homes in the area have sold for recently, helping you avoid overpaying or making an offer that’s too low to be considered seriously. A well-prepared CMA from your agent gives you the confidence to submit a competitive and fair offer.

Key Points:

• Competitive markets may require above-list offers. In a hot market, bidding wars can drive up the final sale price, so you may need to offer more to stay competitive.
• Slower markets may allow for negotiation. If homes are sitting longer, sellers may be more willing to accept less or offer concessions.
• Consider how long the home has been on the market. A longer time on market can be a sign of overpricing or a motivated seller.

Having your financing lined up ahead of time gives your offer more credibility. In competitive markets, sellers may favor offers that come with strong proof of financing.

If you’re not sure what kind of mortgage is best for you, be sure to check out our previous post in this series: Understanding Mortgage Options: Loan Types, Rates, and Assistance Programs. It covers everything from conventional and FHA loans to jumbo and VA options, as well as programs that may help with your down payment.

Having a solid understanding of your financial limits and getting pre-approved puts you in a strong position—especially in competitive markets where homes move quickly.

You don’t always have to offer full price—but you do need to be smart. Your offer should reflect both market value and how much you want the home. Your agent will help you choose a price and terms that reflect both your goals and current market realities.

Key Points:

• Think about price escalation clauses if competing. This allows your offer to automatically increase if other offers come in higher.
• Consider how your offer compares to the likely appraisal. If the home doesn’t appraise, you might need to cover the difference in cash.
• Don’t lowball in a hot market—it could backfire. A low offer might offend sellers or get ignored in a multiple-offer situation.

Contingencies are clauses in your offer that allow you to cancel the agreement without penalty if certain conditions aren’t met. They act as safety nets, helping to protect your financial interests.

When you include contingencies in your offer, you’re essentially saying, “I’ll buy this home if these specific things happen.” If those things don’t happen—like the home doesn’t appraise or serious issues are found during inspection—you can renegotiate or walk away.

Common Contingencies

➡️ In our next post, we’ll dive deeper into home inspections and appraisals so you know what to expect.

Sellers might accept, reject, or counter your offer.

What to Expect:

• Your agent will help you respond to counteroffers and negotiate terms that work for you.
• Counteroffers may include changes to price, closing dates, contingencies, or even what’s included in the sale.
• For example, a seller might come back asking for $10,000 more than your initial offer, or request a shorter closing period. You can accept, reject, or make another counter in response.
• Don’t be discouraged—counteroffers are common and often lead to a deal.

Not every deal is meant to be. If the seller is unwilling to budge on major issues, or if the price or terms no longer make sense for you, it’s okay to move on.

Stay Focused:

Walking away can be tough, especially if you’re emotionally invested. But keeping your long-term goals in mind is key to making a smart decision.

Making an offer on a house involves more than just picking a number—it’s a strategic move with financial, legal, and emotional implications. With the right guidance and preparation, you can submit an offer that gives you the best chance at success.

➡️ Stay tuned for the next article in our Home Buying 101 series: Home Inspections & Appraisals, where we’ll guide you through what to expect after your offer is accepted.

Have questions or ready to make an offer? Let’s talk!