Chapter 9: Step 4 – Making an Offer
You found the perfect home. Now it’s time to make an offer.
This is where your agent’s negotiation skills really matter. Here’s what you need to know.
What an Offer Includes
| Component | What It Is |
|---|---|
| Purchase Price | What you’re offering to pay |
| Earnest Money | Good faith deposit (usually 1%–2% of the price) |
| Option Period | Time to inspect the home and negotiate repairs |
| Closing Date | When you take ownership |
| Contingencies | Conditions that must be met (financing, inspection, appraisal) |
| Personal Property | What stays (appliances, fixtures, etc.) |
How to Determine Your Offer Price
Your agent will help you determine the right price based on:
| Factor | Why It Matters |
|---|---|
| Comparable Sales (Comps) | What similar homes in the area sold for recently |
| Market Conditions | Is it a seller’s market or buyer’s market? |
| Home Condition | Does it need repairs or updates? |
| Seller’s Motivation | Is the seller in a hurry? |
| Competition | Are there other offers? |
Strategy:
- In a hot market, offer closer to the asking price (or above)
- In a slow market, you can offer below asking
- Always base your offer on data, not emotion
The Texas Real Estate Contract
Texas has a unique real estate contract. Here are some key terms:
| Term | What It Means |
|---|---|
| Option Period | A specific time (usually 7–10 days) to inspect the home and negotiate repairs. You pay a small fee for this option. |
| Earnest Money | A deposit that shows you’re serious. It’s held in escrow and applied to your purchase. |
| Third-Party Financing Addendum | Protects you if your loan doesn’t get approved. |
| Appraisal Addendum | Protects you if the home appraises for less than the offer price. |
Contingencies: Your Safety Nets
Contingencies are conditions that must be met for the sale to go through.
| Contingency | What It Protects You From |
|---|---|
| Financing Contingency | If your loan falls through, you can back out |
| Inspection Contingency | If issues are found, you can negotiate or walk away |
| Appraisal Contingency | If the home appraises low, you can renegotiate |
Pro Tip: Don’t waive contingencies unless you’re an experienced buyer or in a competitive bidding war.
Negotiation Strategies
| Seller Says… | You Can… |
|---|---|
| “We have other offers” | Increase your price or improve your terms |
| “Price is firm” | Ask for seller concessions (closing costs, repairs) |
| “We need a quick closing” | Offer a fast, flexible closing date |
| “No repairs” | Adjust the price down to cover the repairs |
The Goal: Win the house at a fair price, but don’t overpay.
The Counteroffer Process
This is how negotiations work:
- You make an offer. The seller accepts, rejects, or counters.
- The seller counters. They change the price, closing date, or terms.
- You respond. You accept, reject, or counter again.
- Repeat until you agree or walk away.
Pro Tip: Don’t take it personally. This is business.
Once Your Offer Is Accepted
Congratulations! Now you go into the option period.
| Step | Timeline |
|---|---|
| 1. Home Inspection | Within 7–10 days |
| 2. Negotiate Repairs | Within the option period |
| 3. Appraisal | 2–3 weeks |
| 4. Final Loan Approval | 3–4 weeks |
| 5. Closing | 30–45 days after offer acceptance |