Buying a home · Stage
Making an offer
What goes into a contract, how negotiation typically works, and which terms carry the most weight.
The negotiation stage, where the offer goes in and the contract takes shape. In tight markets, the structure of the offer often beats the headline number — a slightly lower-price offer with fewer contingencies and stronger financing frequently wins over a higher-price offer with more conditions attached.
- Setting the offer price relative to comparable sales and the local list-to-sale ratio
- Choosing the contingency package (inspection, appraisal, financing, sale-of-current-home) for the buyer's risk tolerance
- Determining earnest money, typically 1–3% of purchase price (higher in tight markets)
- Negotiating closing date, possession, and any post-closing rent-back
Questions to ask at this stage
Ask yourself
- What's the walkaway price above which this home no longer makes sense?
- For waivers under consideration (inspection, appraisal, financing), what are the financial implications if the underlying scenario goes wrong?
Ask your buyer's agent
- What contingencies are typical in this market for this property type, and how does removing any of them change the offer's attractiveness?
- What's the recommended initial offer price relative to list, and what's the strategy if there's a counter?
Ask the listing agent (via your buyer's agent)
- What does the seller appear to value most beyond price — speed, certainty, flexibility on timing, post-closing rent-back?
- If the listing has been on market for a while, what's been the seller's response to prior offers?
Articles in this stage
- How earnest money actually works, and what determines whether you get it backEarnest money is the deposit a buyer puts down with an accepted offer to signal commitment. It's typically 1–3% of the purchase price, held by a neutral third party, and the contract determines whether the buyer gets it back if the deal doesn't close.
- Writing a competitive offer, in markets where price isn't the only thing that mattersA real estate offer is a contract draft, not a number. Two offers at the same price are not equivalent if their contingency packages, financing, earnest money, and timeline differ. In tight markets, the structure of the offer often beats the headline price.
More in the buyer journey
- 01Getting startedDeciding whether to buy, sizing up affordability, and understanding what the next year looks like.
- 02FinancingHow mortgages work, what lenders look at, and how to compare loan products honestly.
- 03SearchingHow to read listings critically and how the market actually moves in any specific area.
- 04 · You are hereMaking an offer
- 05Under contractInspections, contingencies, appraisals, and the period when the deal is at most risk of falling apart.
- 06ClosingThe legal mechanics of transferring ownership, the closing disclosure, and the day itself.
- 07AfterThe first year of ownership, the homestead exemption, and the tax basics buyers commonly miss.