Making an offer is one of the most important steps in the homebuying process. It’s the point where you find out if the home will be yours or not. From deciding how much to offer to choosing contingencies and earnest money, and preparing for negotiations, there’s a lot to consider.
In this Redfin article, we’ll outline how to make an offer on a house in six steps. Whether you’re buying a home in Minneapolis, MN, or a townhouse in Austin, TX, here’s what you need to know about making an offer on a home so you have the best chance of getting it accepted.
6 steps to make an offer on a house
1: Decide on how much to offer
2: Choose your contingencies
3: Decide on earnest money amount
4: Write up the offer letter
5: Submit your offer and wait
6: Negotiate the terms of the sale
What to do before making an offer
Before making an offer on a home, there are a few things you should do that can help make the process smoother. Let’s explore them.
Get a mortgage pre-approval
A pre-approval letter tells you how much a lender will loan you to buy a home. Most sellers won’t take an offer seriously without pre-approval, so having one ready lets you move fast when you find a home.
Keep in mind that a pre-approval is different from a pre-qualification. A pre-approval is the more serious of the two, as a lender examines your finances to decide how much to lend. A pre-qualification only uses the information you provide.
Learn about the local housing market
If homes are selling quickly and above the list price, you’re likely in a competitive market. You could end up competing with other buyers or get drawn into a bidding war on a home. Knowing the market can help you decide what price to offer. Look up housing trends in your area and ask your real estate agent for their expertise.
Get insight from your agent
Your real estate agent may also know information about why the sellers are selling their home. If the sellers are in a hurry…