Deciding to make an offer on a home is exciting, and the next few days can move quickly. Understanding the usual path an offer takes helps you stay calm and make good decisions along the way.
Building the offer
An offer is more than a price. It is a proposed contract that typically includes:
- The purchase price you are offering.
- The amount of earnest money you will deposit.
- How you plan to pay, including your loan type and down payment.
- Contingencies, such as inspection, financing and appraisal.
- Your proposed closing date and when you would take possession.
- Items included or excluded, like appliances or fixtures.
- A deadline for the seller to respond.
Your agent can help you weigh these terms based on the home, recent activity in the area and your own priorities. Price matters, but sellers often care about certainty and timing too.
Submitting and waiting
Once the offer is signed, your agent sends it to the listing agent, usually along with your pre-approval letter. The seller then reviews it, often with their agent. Depending on the situation, you might hear back within hours or wait until the response deadline. If the seller has received multiple offers, they may take time to compare them.
The three possible responses
Sellers generally respond in one of three ways. They may accept your offer as written. They may reject it, or simply let it expire. Or they may send a counteroffer, proposing changes such as a different price, closing date or contingency period.
A counteroffer is an invitation to keep talking. You can accept it, reject it or counter again. Negotiations can go back and forth several times. Each round, focus on the terms that matter most to you and be willing to give on the ones that do not.
Reaching an accepted contract
When both parties agree to the same terms and sign, the offer becomes a binding purchase agreement, often described as being “under contract.” That starts the clock on the deadlines in your contract. Common next steps include delivering earnest money, scheduling inspections, finalizing your loan application and ordering an appraisal.
Keep a calendar of every contract date. Missing a deadline can affect your rights, including whether you can cancel under a contingency.
Keeping perspective
Not every offer is accepted, and that is a normal part of buying a home. If an offer does not work out, take what you learned about the market and your own priorities into the next one. A clear sense of your limits, both financial and practical, helps you know when to push and when to walk away.
Purchase agreements are legal documents, and if you have questions about specific terms, a real estate attorney can advise you. When you find a home you would like to pursue, contact us through our contact page.
Going Deeper: Preparing Before You Write
The strongest offers are usually the ones that were thought through before the buyer ever sat down to sign. When you find a home you like, a few steps can help you move quickly without feeling rushed.
- Refresh your pre-approval. Make sure your letter is current and reflects the price range of the home. If you want a letter tailored to the offer price, ask your lender ahead of time.
- Review comparable sales. We will look at recent sales of similar homes nearby so you understand how the asking price fits the local market.
- Read the seller’s disclosure. Knowing what the seller has shared about the home can shape your inspection plans and your offer terms.
- Decide your walk-away point. Settle on the highest price and the least favorable terms you would accept before you are in the middle of a negotiation.
- Confirm your timing. Think about your lease, your current home, and any move-in date you need. Flexibility on closing can sometimes matter as much as price.
- Have funds ready. Know where your earnest money will come from and how you will deliver it once the offer is accepted.
A Worked Example: One Offer, Two Rounds
Imagine a buyer who finds a home in Cartersville that checks most of the boxes on their list. After reviewing recent sales, they submit an offer slightly under the asking price, with standard inspection, financing, and appraisal contingencies, and a closing date about a month and a half out.
The seller responds with a counteroffer. They accept the contingencies but ask for a price closer to the asking price and a closing date about two weeks later, because they need time to finish moving. The buyer weighs the counter. Their lease is flexible, so a later closing actually works well. They agree to the later date and meet the seller partway on price.
The seller accepts and both sides sign. Nobody got everything they asked for, but each party received the terms that mattered most. That is often what a successful negotiation looks like.
Common Offer Mistakes and How to Avoid Them
- Focusing only on price. Closing dates, contingency periods, and possession terms can all make an offer more appealing to a seller without changing the number.
- Letting the response deadline slide. When you receive a counteroffer, it usually has its own deadline. Decide promptly so it does not expire.
- Negotiating by emotion. It is easy to feel insulted by a counteroffer or overly attached to a home. Keep returning to your budget and your list of priorities.
- Forgetting what is included. If you expect certain appliances, window treatments, or fixtures to stay, make sure the contract says so.
- Assuming signatures are the finish line. An accepted offer starts a new set of deadlines. Put each date on your calendar right away.
Questions Readers Ask
Can I withdraw an offer before the seller responds?
In many cases an offer can be withdrawn before it is accepted, but the rules depend on how it was written and how the withdrawal is communicated. Ask us, and if you have legal questions, a real estate attorney.
What is an escalation clause?
It is a term some buyers use in competitive situations, offering to raise their price by a set amount above another offer, up to a limit. It is not right for every situation, and its use can vary by market, so we can talk through whether it makes sense.
Should I write a letter to the seller?
Personal letters can raise fair housing concerns, because they may share information that should not factor into a seller’s decision. We generally recommend letting the terms of the offer speak for themselves.
How long does it take to hear back?
It varies. Some sellers respond the same day, while others wait until the deadline, especially if they are reviewing several offers. Setting a reasonable response deadline helps everyone stay on track.
