How to Make an Offer: A Homebuyer’s Guide

You’ve found your dream home – congratulations! But will the seller accept your offer above others? That’s a question that can make submitting an offer on a house you love both exciting and stressful. In real estate, an accepted offer is a sales contract and is legally binding, so it’s paramount that you take the process seriously. Here’s how to make an offer on a home:

Consider Your Offer Price

You should determine how far you’re willing to go financially – remember not to exceed your budget. Make sure your ceiling figure covers the legal fees, moving costs, closing fees, renovation costs, and any other homebuying costs you may encounter. You should also consult a skilled real estate agent who can pull out a CMA and guide you on the best offer price that matches the value of the home.

Decide on Your Earnest Money

Earnest money is the upfront cash you put into the home transaction. Keep in mind that you forfeit this deposit to the seller if you back out of the deal for reasons (contingencies) not covered in your offer. The earnest money comes from your down payment, so it’s actually not additional cash. And while the deposit can vary, it’s typically in the 1-2% range of the purchasing price. A larger deposit helps your offer stand out and shows the seller that you’re serious about buying their home.

Consider Your Conditions or Contingencies

Contingencies are clauses you put in an offer to allow you to back out of the transaction without facing legal issues or losing your earnest money deposit. The most common contingencies include:

  • Home inspection
  • Home appraisal
  • Mortgage financing
  • Current home sale
  • Title

Since these conditions make the transaction more difficult for the seller, waiving some can make your offer more attractive. However, consult your agent before doing that, as waiving some contingencies, such as inspection, can have serious repercussions later.

Need Help Making an Offer on a Home?

Making an offer on a house doesn’t have to be stressful! Contact an experienced real estate agent in Grande Prairie who’s readily available to help you create and submit a winning offer and negotiate on your behalf to ensure you get the best deal. Call us now!