How to make an offer!

Among buyers who made an official offer on a home, 45% made multiple offers. Putting an offer on a house can be complicated and stressful, especially for first-time buyers. And even if you’ve bought a home before, the steps you should follow can depend on your local real estate market.

In a sellers market, you may have to compete against other buyers, which raises the stakes and makes it especially important that you move through these steps quickly. In a buyers market, a less competitive offer might do the trick, pressure may be lower and you may not have to waive any contingencies.

When you’ve found a home you love, here’s what you need to do to put your offer in.

Steps to putting an offer on a house

Submitting an offer on a home is a process filled with hope, excitement and anxiety — especially if you’ve fallen in love with a home and feel like you can’t live without it. Here’s how the process typically goes.

1. Find the right home

Of course, before you can put in an offer on a home, you have to find a home that’s offer-worthy.

2. Determine feasibility based on cost

It’s time to run the numbers. Do you have enough for the down payment? Can you afford the monthly payment on the home? Be sure to factor in costs like property taxes, HOA dues, insurance and maintenance. If you’ve been preapproved for a loan, you can have your lender help you through these calculations.

3. Ask your real estate agent for comps

Have your real estate agent run comps, identifying similar for-sale homes in the area to help you get a feel for an appropriate offer price.

4. Determine your offer price, contingencies and timeline

If you need room to negotiate, you’ll want your initial offer to be lower than the maximum price you’re willing or able to pay. You’ll also need to determine your desired closing date and what contingencies you will be including in the offer. In a competitive market where multiple offers are submitted, contingencies and timeline can be the deciding factors. If you’re buying in a sellers market, be sure to ask for your agent’s insight on what sellers are looking for in an offer.

5. Draft and submit your offer

Your offer should be in the form of a purchase and sale agreement. Your agent will draft this for you and you’ll sign or e-sign before it’s submitted. The document will become legally binding if the seller accepts your offer. At that point, you’re buying a house, and the purchase and sale contract will become a key part of your transaction paperwork.

6. Seller replies: yes, no, or counter

Upon reviewing your offer, the seller might accept your offer as-is, decline the offer altogether or counter the offer to start the negotiating process. If the seller accepts your offer, they will sign the purchase and sale contract. If they decline your offer, negotiations end. If they counter, you can either accept their counteroffer or counter back.

It’s common for the negotiations to go a few rounds, with the buyer and seller providing counteroffers back and forth, usually with the advice and assistance of their agents. Price isn’t the only thing that can be negotiated. You might also find yourself negotiating repairs, contingencies and closing timeline.