Finding the right home is exciting, but the real work starts when you decide to buy it. Knowing how to make an offer on a house can be the difference between getting the keys and watching another buyer win. In this guide, you’ll learn each step of the process, what goes into a written offer, how much to offer, and how to make your bid stronger without overpaying.
What Is an Offer on a House?
An offer is a written proposal to buy a specific home at a specific price and under specific conditions. In most states, it’s prepared as a purchase agreement (also called a sales contract) and signed by you before it goes to the seller. If the seller signs it as written, it becomes a binding contract.
An offer is more than a price. It also includes your deposit, your financing, the deadlines for each step and the conditions that must be met before the sale closes. Sellers look at all of these terms, not just the number at the top.
How to Make an Offer on a House: 8 Steps
Step 1: Get Pre-Approved Before You Shop
The first step in how to make an offer on a house is getting a mortgage pre-approval. A pre-approval letter shows the seller that a lender has reviewed your income, debts and credit, and is willing to lend you a certain amount. In competitive markets, many sellers won’t take an offer seriously without one.
If you’re not sure what the difference is, read our guide on mortgage pre-approval vs pre-qualification. To set a realistic budget first, try our How Much House Can I Afford calculator.
Step 2: Research Comparable Sales
The first step in how to make an offer on a house is getting a mortgage pre-approval. Your agent can pull “comps”: recent sales of homes nearby with similar size, age, condition and features.
Pay attention to:
- Sale price vs list price: are homes in the area selling above, at or below asking?
- Days on market: homes that sell in a few days point to a hot market; homes that sit for months give you more room to negotiate.
- Condition: a renovated home and one that needs a new roof are not worth the same, even if they are the same size.
Step 3: Decide How Much to Offer
There’s no single rule for how much to offer. It depends on the market and on the home itself:
- Seller’s market (few homes, many buyers): you may need to offer at or above list price to compete.
- Balanced market: an offer close to the list price, backed by comps, is usually reasonable.
- Buyer’s market or a home that has been listed for a long time: you may be able to offer below asking.
Before you settle on a number, run it through our mortgage calculator to see the monthly payment with taxes, insurance and PMI. The best offer is one you can actually afford after closing.
Step 4: Choose Your Earnest Money Deposit
Earnest money is a deposit you make when the seller accepts your offer. It shows you are serious about buying. It’s commonly around 1% to 3% of the purchase price, although it varies by area and by market.
The money is usually held by a title company, an attorney or an escrow agent, and it’s applied to your down payment or closing costs at closing. If you back out of the deal for a reason not covered by your contract, you could lose it. A larger deposit can make your offer more attractive, but only offer what you are comfortable putting at risk.
Step 5: Decide Which Contingencies to Include
Contingencies are conditions that must be met for the sale to go ahead. They protect you, but each one also gives the seller more uncertainty, so they affect how strong your offer looks. Choosing them carefully is one of the most important parts of how to make an offer on a house.
| Contingency | What it protects you from | Typical deadline |
|---|---|---|
| Inspection | Major problems found during the home inspection | 7 to 10 days |
| Appraisal | The home appraising for less than your offer price | Before loan approval |
| Financing | Not getting final approval for your mortgage | 21 to 30 days |
| Home sale | Needing to sell your current home first | Varies |
The inspection contingency is the one most buyers should keep. It lets you renegotiate or walk away if serious issues come up. Our home inspection checklist explains what inspectors look at and how to prepare.
Step 6: Set the Closing Date and Other Terms
Sellers often care about timing as much as price. Some need to close quickly; others need extra time to move. Ask your agent what the seller prefers and, if you can, make your closing date match it.
Other terms you can include:
- Seller concessions: asking the seller to pay part of your closing costs.
- Items included in the sale: appliances, window treatments or other fixtures.
- Rent-back period: letting the seller stay for a short time after closing.
Step 7: Write and Submit the Offer
The last part of how to make an offer on a house is putting it in writing. Your real estate agent will usually prepare the written offer using your state’s standard purchase agreement, then send it to the listing agent. In some states, an attorney prepares or reviews it instead. Read every section before you sign, especially the deadlines and what happens to your earnest money if the deal falls through.
Since August 2024, buyers who work with an agent typically need to sign a written agreement with that agent before touring homes. This agreement explains what your agent will be paid and how. The National Association of Realtors explains these changes on its consumer facts page.
Many offers also include an expiration time, often 24 to 48 hours, so the seller can’t hold your offer while waiting for others.
Step 8: Negotiate the Seller’s Response
After you submit your offer, the seller can:
- Accept it: you’re under contract and the next steps begin.
- Reject it: you can make a new offer or move on.
- Make a counteroffer: the seller changes some terms, such as the price or closing date, and sends it back to you.
Counteroffers can go back and forth several times. Stay focused on your budget and on the terms that matter most to you. If the numbers stop making sense, it’s fine to walk away.
How to Make Your Offer Stronger
If you’re competing with other buyers, knowing how to make an offer on a house that stands out really matters. These moves can help without simply raising your price:
- Include a strong pre-approval letter from a known lender.
- Offer a larger earnest money deposit, if you can afford the risk.
- Be flexible on the closing date to match the seller’s plans.
- Shorten your contingency deadlines instead of removing them.
- Use an escalation clause: it automatically raises your offer by a set amount above competing bids, up to a maximum you choose.
- Make a larger down payment, which can reduce the risk of financing problems. See how much down payment you really need.
Be careful about waiving the inspection or appraisal contingency. It can make your offer more attractive, but it also means you take on the risk if something goes wrong.
What Happens After Your Offer Is Accepted?
Once the seller accepts, you’re under contract. The usual next steps are:
- Deposit your earnest money within the deadline in the contract.
- Schedule the home inspection and review the report.
- Complete your mortgage application and consider a mortgage rate lock to protect your rate.
- The lender orders an appraisal to confirm the home’s value.
- Get final loan approval and review your Closing Disclosure at least three business days before closing.
- Do a final walk-through and sign the documents at closing.
The Consumer Financial Protection Bureau has a helpful guide to buying a home that walks through each of these stages.
A Note from José María
When I started researching how to make an offer on a house, what surprised me most is how many parts of an offer have nothing to do with the price. Earnest money, contingencies and the closing date can all make an offer more or less attractive to a seller. My advice is to decide in advance which terms you can be flexible on and which ones you won’t give up, especially the home inspection. That way, you can negotiate with a clear head when the counteroffers start coming in.
Frequently Asked Questions
Can I make an offer on a house without a real estate agent?
Yes. You can write an offer yourself or hire a real estate attorney to prepare it. It’s riskier if you’re not familiar with your state’s contracts, deadlines and disclosures, so many first-time buyers prefer professional help.
How long does a seller have to respond to an offer?
It depends on the expiration time written in your offer. Many buyers give the seller 24 to 48 hours. If there’s no deadline, the seller can take longer, which gives them time to wait for other offers.
Can I withdraw an offer on a house?
In most cases, you can withdraw an offer before the seller accepts it. After acceptance, backing out usually depends on your contingencies. If you cancel for a reason not covered by your contract, you could lose your earnest money.
Should I offer below the asking price?
It can make sense if the home has been on the market for a long time, needs repairs, or if comparable homes have sold for less. In a competitive market, a low offer may simply be ignored.
Conclusion
Learning how to make an offer on a house comes down to preparation: get pre-approved, study comparable sales, choose your price and terms carefully, and protect yourself with the right contingencies. A well-built offer gives you the best chance of winning the home you want at a price you can live with.
If you’re buying your first home, our guide to first-time homebuyer programs by state can help you find assistance with your down payment and closing costs.