Steps for Making an Offer on a House

Buying a Home Noel Lawton September 27, 2023


Discovering Your Ideal Home

Your journey to homeownership begins with discovering the ideal home that suits your needs and preferences. Here's how to get started:

1. Attend Property Viewings and Open Houses

One of the best ways to explore potential homes is by attending property viewings and open houses. Your real estate agent can schedule these visits, allowing you to physically explore properties and get a feel for them. Take notes, ask questions, and pay attention to the neighborhood and its amenities.

Property viewings provide you with a firsthand look at the condition and layout of a home. You can assess whether it meets your criteria, from the number of bedrooms and bathrooms to the overall atmosphere of the property. Additionally, open houses often provide an opportunity to interact with the selling agent, who can provide valuable insights.

2. Use Online Resources

Utilize online websites and platforms to search for homes and listings recommended by your Realtor. Many websites offer detailed information, including photos, floor plans, and neighborhood data. You can filter your searches based on your desired home features, such as the number of bedrooms, bathrooms, or square footage.

Online resources not only save you time but also allow you to explore a wide range of properties from the comfort of your own home. This can be particularly helpful for narrowing down your options and identifying homes that align with your preferences.

3. Employ Technology for Alerts

Make the most of technology by setting up alerts for new listings that match your desired home features in your preferred neighborhoods. Many real estate websites and apps offer this feature, ensuring you stay updated on the latest properties that meet your criteria.

Technology can be a powerful tool in your home search, especially in competitive markets where desirable properties may be in high demand. By receiving alerts for new listings, you can act swiftly and schedule viewings when promising properties become available.

Assessing Affordability

Before you fall in love with a property, it's crucial to assess affordability to avoid disappointment down the road. Here's how to do it:

1. Calculate Your Financial Readiness

Consider the following financial factors:

a. Down Payment

Determine how much you can afford to put down as a down payment. The typical down payment ranges from 3% to 20% of the home's purchase price, depending on your mortgage type and lender requirements.

Your down payment plays a significant role in determining your monthly mortgage payments, interest rates, and whether you'll need to pay for private mortgage insurance (PMI). A larger down payment often leads to more favorable loan terms.

b. Monthly Mortgage Payment

Estimate your monthly mortgage payment, which includes principal and interest, property taxes, and homeowners insurance. Use mortgage calculators to get an idea of your potential monthly expenses.

Understanding your monthly obligations is essential for budgeting and ensuring that your housing costs align with your overall financial situation. Keep in mind that property taxes and homeowners insurance can vary significantly by location.

c. Homeowner Association Dues

If you're considering planned communities or condominiums, factor in any homeowner association dues. These fees cover shared amenities and community maintenance.

Homeowner association dues can impact your monthly expenses, so it's essential to include them in your budget calculations. Make sure to inquire about the specific dues associated with the properties you're interested in.

Assessing your financial readiness gives you a clear picture of what you can comfortably afford. It helps you avoid overextending yourself and ensures that you're well-prepared for the financial responsibilities of homeownership.

Analyzing Comparable Home Prices

Understanding the market and evaluating comparable home prices is essential to making informed decisions. Here's how to go about it:

1. Request a Comparative Market Analysis (Comps)

Ask your real estate agent to perform a comparative market analysis (comps) for you. This analysis involves evaluating recent sales of similar homes in the area to gauge the reasonableness of the seller's asking price. Comps provide valuable insights into the current market conditions.

A comparative market analysis involves the following steps:

  • Identifying Comparable Properties: Your agent will search for recently sold homes that are similar in terms of size, location, and features to the property you're interested in. These homes are referred to as "comparables" or "comps."

  • Analyzing Sales Data: Your agent will review the sales data of the chosen comparables, including their sale prices, the length of time they spent on the market, and any price adjustments that occurred during the listing period.

  • Adjusting for Differences: To make accurate comparisons, your agent will adjust the sale prices of the comparables based on any differences between them and the property you're considering. These adjustments account for variations in size, condition, upgrades, and other factors.

  • Determining an Estimated Value: By considering the adjusted sale prices of the comparables, your agent will arrive at an estimated value for the property you're interested in. This estimated value serves as a benchmark for assessing the reasonableness of the seller's asking price.

A comparative market analysis is a valuable tool for buyers because it provides an objective assessment of a property's market value. Armed with this information, you can make informed decisions when crafting your offer and negotiating with the seller.

Defining Your Offer Terms, Contingencies, and Timeline

Crafting a compelling offer is critical, especially in competitive markets. Here's what you need to consider:

1. Emphasize Contingencies and Timeline

In a competitive market, contingencies and timeline can enhance the appeal of your offer. Work with your real estate agent to structure your offer strategically.


  • Home Inspection Contingency: This contingency allows you to have the property inspected by a qualified professional. If significant issues are uncovered, you can negotiate repairs or even withdraw your offer.

  • Financing Contingency: A financing contingency provides a safeguard in case your mortgage approval falls through. If you're unable to secure financing, you can exit the contract without penalties.

  • Appraisal Contingency: An appraisal contingency ensures that the property's appraised value aligns with the purchase price. If the appraisal comes in lower, you can negotiate with the seller or withdraw your offer.


  • Closing Date: Specify your preferred closing date in your offer. This date determines when ownership officially transfers to you. A well-defined timeline can be attractive to sellers, especially if they have specific moving plans.

  • Timeframe for Inspections: Outline the timeframe within which you'll complete inspections, such as a home inspection or termite inspection. A shorter inspection period demonstrates your commitment and urgency.

  • Response Deadline: Set a deadline for the seller to respond to your offer. This ensures that the negotiation process proceeds efficiently and helps you avoid delays.

By emphasizing contingencies and timeline, you can make your offer more attractive to sellers while protecting your interests as a buyer.

2. Seek Guidance

Consult with your agent to make your offer more attractive to sellers. They can provide insights and help you tailor your offer to align with the sellers' preferences and unique needs, such as their timeline for finding another home.

Your real estate agent has a deep understanding of the local market and can provide valuable advice on crafting an offer that stands out. They can also negotiate on your behalf to secure favorable terms.

3. Consider Room for Negotiation

If you anticipate room for negotiation, especially in a sellers' market, you may want to prepare a lower offer price. This can provide you with flexibility during the negotiation process.

While offering below the asking price is common in real estate negotiations, it's essential to strike a balance. A significantly low offer may be perceived as a lack of seriousness, potentially alienating the seller. Your agent can help you gauge the appropriate price point for your initial offer.

Creating and Submitting Your Offer

When you've defined your offer terms, it's time to create and submit your official offer. Here's how to proceed:

1. Formulate a Purchase and Sale Agreement

Typically, your real estate agent will draft a purchase and sale agreement on your behalf. This legally binding document outlines the terms and conditions of the sale, including the price, contingencies, and timeline.

The purchase and sale agreement serves as the foundation of your offer. It provides a clear framework for the transaction and ensures that both parties are on the same page regarding their obligations.

The agreement typically includes the following details:

  • Property address and legal description
  • Purchase price
  • Earnest money deposit amount
  • Financing terms
  • Contingencies
  • Timeline
  • Closing date
  • Responsibilities of both buyer and seller

Your agent will guide you through the process of completing the agreement, ensuring that all relevant information is included and accurate.

2. Sign or E-Sign the Agreement

Review the agreement carefully and, when satisfied, sign or e-sign it. Your agent will guide you through this process, ensuring that all parties involved sign the document electronically or in person.

Signing the purchase and sale agreement formalizes your offer and marks the beginning of the negotiation process with the seller. Once the agreement is signed by both parties, it becomes legally binding.

3. Include a Respectful Letter if Allowed by Sellers

If your offer substantially deviates from the seller's asking price, consider including a respectful letter. In this letter, you can summarize market conditions or comparative analyses that support your offer. A well-crafted letter can help build rapport with the seller.

Your letter should convey your genuine interest in the property and your commitment to the purchase. It can be a compelling addition to your offer, especially when price negotiations are involved.

Seller Response: Acceptance, Rejection, or Counteroffer

Once your offer is submitted, you'll receive a response from the seller. This response can take various forms:

1. Acceptance

In the best-case scenario, the seller may accept your offer as-is, sign the purchase and sale agreement, and mark the beginning of the sales process.

An accepted offer signifies that both parties have reached an agreement on the terms and conditions outlined in the purchase and sale agreement. At this point, the property is considered "under contract," and the process moves forward toward closing.

2. Rejection

Alternatively, the seller may reject your offer entirely, indicating that they are not willing to proceed with the terms you've proposed.

A rejected offer can be disappointing, but it's essential to remember that it's part of the negotiation process. Sellers may decline offers for various reasons, including a significant disparity in price or terms that don't align with their goals.

3. Counteroffer

Many times, negotiations involve multiple rounds of counteroffers. These can cover not only the price but also repairs, contingencies, furnishings, fixtures, and the closing timeline. Be prepared for back-and-forth negotiations until both parties reach an agreement.

Counteroffers are a common part of real estate negotiations, allowing both parties to fine-tune the terms of the sale to their satisfaction. Each counteroffer is a step closer to reaching a mutually beneficial agreement.

Finalizing and Signing the Sales Contract

When both parties agree on all aspects of the sale, the sales contract is updated accordingly. Here's what happens next:

1. "Under Contract" Status

Once the contract is signed by both parties, the property is marked as "under contract." This typically indicates a "pending" sale listing.

An "under contract" status signals that the property is no longer actively available for sale to other buyers. While the property is technically off the market, it's essential to continue meeting the agreed-upon contingencies and requirements to move forward with the purchase.

2. Contingencies and Financing

Assuming that contingencies and financing proceed smoothly, and depending on your chosen closing date, you'll become a homeowner in approximately 14-45 days. During this time, inspections, appraisals, and other necessary steps will be completed.

Here's an overview of some of the key aspects during this phase:


  • Home Inspection: As part of your due diligence, you'll likely have a home inspection conducted. A qualified inspector will assess the property's condition and identify any potential issues. If significant problems are uncovered, you can negotiate repairs with the seller or even withdraw from the contract.

  • Termite Inspection: In some regions, termite inspections are a common requirement. These inspections check for termite damage or infestations.

  • Additional Inspections: Depending on the property and your preferences, you may opt for additional inspections, such as radon, mold, or lead paint assessments.


  • Property Appraisal: Your lender will arrange for an appraisal of the property to ensure that its appraised value aligns with the purchase price. If the appraisal comes in lower than the agreed-upon price, you can negotiate with the seller or reevaluate your financing options.


  • Mortgage Approval: Continue working closely with your lender to secure final mortgage approval. Provide any required documentation promptly and adhere to their timeline.

  • Final Loan Terms: Review the final loan terms provided by your lender. Ensure that you understand your interest rate, monthly payments, and closing costs.

  • Funding Your Down Payment: Prepare to transfer the funds for your down payment to the appropriate account as instructed by your lender.

  • Homeowners Insurance: Obtain homeowners insurance coverage, as it's typically a requirement for mortgage approval.

  • Title Search and Title Insurance: The title company will conduct a title search to ensure that the property's title is clear of any encumbrances. You'll also need to secure title insurance to protect your interests.


  • Final Walk-Through: Before closing, schedule a final walk-through of the property to ensure that it's in the agreed-upon condition and that any repairs or negotiated items have been addressed.

Conclusion: The Path to a Successful Sale

Discovering and acquiring your ideal home involves a series of steps, from exploring properties and assessing affordability to crafting compelling offers and navigating negotiations. By following this comprehensive guide, you can make informed decisions throughout the home buying process. Remember that each stage plays a crucial role in ensuring a successful and satisfying journey to homeownership.

As you approach the final stages of your home purchase, stay organized, communicate effectively with your real estate agent, lender, and other parties involved, and be prepared for unexpected twists and turns. Homeownership is a significant achievement, and with careful planning and the right guidance, you'll soon be settling into your dream home.



Noel's approach to real estate sales is underpinned by her exceptional abilities and extensive resources. Combining a robust network, adept negotiation skills, and cutting-edge marketing strategies, she guarantees successful outcomes for both sellers and buyers. In this dynamic and unprecedented real estate market, clients can place their trust in Noel's expertise to navigate the process seamlessly, ensuring properties are swiftly bought and sold at the most favorable prices. With her guidance, homeowners and homebuyers can confidently achieve their goals and maximize their potential in the buying and selling journey.