Making an Offer on a House: What the Process Looks Like

Before You Write the Offer

Making an offer on a home is not simply naming a price — it is presenting a legally structured proposal that, once accepted, commits both parties to a transaction. For a deeper orientation to the full home-buying journey, see our first-timer's guide to buying a home.

Before drafting anything, gather two critical inputs:

• Comparable sales (comps): Recent sold prices for similar homes in the same neighborhood. Your buyer's agent can pull these from the Multiple Listing Service (MLS). Comps anchor your offer to market reality rather than list-price assumptions.
• Market context: Whether you are in a buyer's or seller's market directly shapes how aggressive or cautious your offer terms should be. Understanding how market conditions shift negotiating power will help you calibrate your approach before you submit anything.

Also confirm your financing status. Sellers take offers with a mortgage pre-approval letter far more seriously than unverified expressions of interest. If you are paying cash, have proof-of-funds documentation ready.

What Goes Into a Purchase Offer

A residential purchase offer — often called a purchase agreement or sales contract — is a written document that typically includes the following elements:

• Offer price: The amount you propose to pay. This may be at, above, or below the list price depending on comps and market conditions.
• Earnest money deposit: A good-faith deposit submitted with the offer, usually held in escrow. It typically ranges from 1% to 3% of the purchase price, though competitive markets sometimes push this higher. If the deal closes, the deposit applies toward your down payment or closing costs. If you back out without a valid contingency, you may forfeit it.
• Contingencies: Conditions that must be met for the sale to proceed. Common examples include a home inspection contingency, a financing contingency, and an appraisal contingency. Each protects the buyer in a specific scenario — but waiving contingencies can make an offer more appealing to sellers.
• Proposed closing date: The target date for finalizing the transaction and transferring ownership.
• Personal property inclusions/exclusions: Specifying which appliances, fixtures, or items stay with the home and which the seller takes.
• Expiration deadline: How long the seller has to respond before your offer lapses — commonly 24 to 72 hours.

For a plain-language walkthrough of the specific paperwork you will sign, see key documents you'll encounter during a home purchase.

Submitting the Offer and What Happens Next

Once your buyer's agent submits the signed offer to the listing agent, the seller typically has three possible responses:

1. Acceptance: The seller signs the offer as written. You are now under contract.
2. Rejection: The seller declines without a counter. You are free to move on or submit a revised offer.
3. Counter-offer: The seller proposes modified terms — price, contingencies, closing timeline, or other factors. You can accept the counter, reject it, or counter again. Each exchange is a negotiation round.

Once both parties reach mutual acceptance, the agreement is signed and dated by all parties — this is the effective contract date, which starts the clock on contingency deadlines and the closing timeline.

If you are still evaluating which agent to work with throughout this process, these questions to ask a real estate agent can help you assess fit before committing.