You found a house you want. Now comes the part where you actually try to buy it. Your agent will help you structure an offer that's competitive but also protects your interests.

What goes into an offer

  • Purchase price (obviously)

  • Earnest money deposit (shows you're serious—usually 1-2% of purchase price)

  • Financing terms

  • Requested closing and possession dates

  • Inspection period

  • Any contingencies

  • What stays with the house (appliances, fixtures, etc.)

Crafting Your offer Strategy

In a hot market, you might need to offer at or above asking price. In a slower market, there's room to negotiate.

Your agent should pull comparable sales and help you understand what's competitive versus what's wasting everyone's time.

It’s not always about the offer price. Your agent should be able to find out what will motivate the seller. If you can offer them something other than money that they want—maybe time flexility for instance—it could be a win-win.

Contingencies

These are conditions that must be met for the sale to go through. Common ones:

  • Financing contingency: You can back out if you can't get a loan

  • Inspection contingency: You can renegotiate or walk away based on inspection findings

  • Appraisal contingency: You can renegotiate if the home doesn't appraise for the purchase price

In competitive markets, buyers sometimes waive contingencies to strengthen their offer—but that's risky. Talk through the implications with your agent.

Earnest Money & Option Fees

Earnest Money (also known as Escrow) is your "good faith" deposit, held in escrow. If you move forward to closing, it applies to your down payment or closing costs. If you back out for a reason covered by your contingencies, you get the earnest money back. If you back out without a valid reason, the seller might keep it. So don't make offers you're not prepared to follow through on.

Option Fees are paid to secure an Option Period that gives you a few days to obtain property inspections and negotiate repairs. If you “Opt Out” during the Option Period, you get your Earnest Money back and your forfeit your option fee. If you move forward to closing, this also applies to your down payment.

multiple offer situations

In competitive markets, you might be up against other buyers. Your agent can help you structure a strong offer—higher earnest money, flexible closing date, personal letter to the seller, or other strategies.

But don't get so caught up in "winning" that you overpay or waive protections you actually need.

After You Submit the Offer

The seller can accept, reject, or counter. Counters are common—they might want a different price, closing date, or terms. This can go back and forth a few times. Stay calm, listen to your agent's advice, and remember: if this deal doesn't work out, another house will come along.