Making an offer on your dream house can be very exciting and simultaneously quite nerve-wrecking. In today’s competitive housing market, it’s not just about the price — it’s about presenting yourself as the most appealing buyer.
Whether you’re a first-time buyer looking for a home in Birmingham, AL or a seasoned investor on the hunt for houses in Miami, FL, these 9 expert tips for making an offer on a house will help you stand out and improve your chances of closing the deal.
1. Create a financial plan and budget
The first step before even touring homes is establishing a solid financial foundation. Knowing your true budget means going beyond just what a lender will approve you for. It means calculating what you’re comfortable spending monthly after accounting for taxes, insurance, utilities, and home maintenance.
This also includes setting aside funds for closing costs, unexpected repairs, and moving expenses. Without a clear plan in place, you risk overcommitting yourself or falling in love with a home that stretches your finances too thin.
2. Get pre-approved for a mortgage and have cash ready
One of the biggest signals to sellers that you’re serious is a mortgage pre-approval letter. This is more than just pre-qualification: It shows a lender has already vetted your finances.
Why pre-approval matters:
- It gives sellers confidence in your ability to close.
- It speeds up the process once your offer is accepted.
- It makes your offer stronger in a multiple-offer situation.
In addition to getting pre-approved, having cash reserves prepared for your earnest money deposit and other closing expenses is also one of the top tips for making an offer on a house. In the average market, a typical earnest money deposit is 1-3% of the home’s purchase price. However, offering more earnest money can be a strategic move when making an offer on a house, especially in competitive markets.
3. Understand the local market
Knowing the dynamics of your local real estate market, like whether you’re searching in a buyer’s or seller’s market, makes a huge difference when making a competitive offer on a property. In a seller’s market, homes may receive multiple offers within days of listing, sometimes going over the asking price. In contrast, a buyer’s market may offer more flexibility and negotiating room.
Analyzing recent comparable sales, the average days on market, and price trends in your target neighborhood can help you determine how aggressive or conservative your offer should be. Knowing how to make an offer on a home means understanding when to go big and when to hold back.
4. Inspect the property and evaluate the neighborhood
When you find a house that you love, don’t get over-eager and make an immediate offer. While speed can be used to your advantage, be diligent in your home inspections and make sure you know the neighborhood prior to making an offer.
When inspecting the home, check for:
- Structural or visible defects
- Issues with major systems like HVAC, roof, plumbing, and foundation
- Red flags that may affect property value
Also, assess the neighborhood’s walkability, crime rates, school district rankings, and community vibe. These are not only lifestyle factors, but also elements that affect long-term resale value. When you’re making an offer on a property, you want to be confident in both the home and its surroundings.
5. Consider seller motivation
Understanding what motivates a seller can help you craft a more compelling offer. Some sellers are focused solely on price, but others may be working on a tight timeline or have emotional ties to the home. If a seller needs to move quickly, offering a fast close may be more persuasive than a higher dollar amount.
In cases where sellers need time after closing, offering flexibility, such as a rent-back arrangement, can make your offer more attractive. The more you can align your offer with their priorities, the stronger your position becomes. Being flexible and accommodating can make your offer more appealing, even if it’s not the highest.
6. Write a strong offer letter
A well-written real estate offer letter can make your offer memorable. A heartfelt, professional letter can help you forge an emotional connection with the seller. Share a genuine compliment about the home’s upkeep or design, why it suits your family or lifestyle, and what excites you most about living there.
Sellers sometimes have deep ties to their homes and want to know it’s going to someone who appreciates it. A well-crafted real estate offer letter adds a personal touch that numbers alone can’t always deliver. Just be careful not to include any information that could lead to fair housing concerns.
7. Offer a competitive price and consider an escalation clause
What price range should you offer on a house? The key is finding a price that’s both attractive to the seller and realistic for your budget (and desire to close on the house). In a multiple-offer scenario, offering slightly above the asking price may be necessary to stay competitive. In slower markets, you may have room to negotiate. But be cautious, extremely lowball offers can cause sellers to ignore your bid altogether.
In addition, adding an escalation clause is a smart strategy in multiple-offer situations. It automatically increases your offer by a set amount above any competing bids, up to a certain cap. For example, you might agree to increase your offer by $2,000 over the highest competing bid, up to a maximum of $450,000. It’s a strategic way to say, “I want this home, and I’m willing to beat other offers, but I won’t exceed my limit.”
8. Be flexible with contingencies and limit requests for extras
Being flexible (without being reckless) is one of the best tips for making an offer on a house. Oftentimes contingencies are essential safeguards for buyers but can turn off sellers and weaken your offer. To entice a seller and ensure your home-buying process is a smooth one, consider:
- waiving minor repair requests or only requesting repairs above a certain cost threshold
- shortening inspection periods to help the seller feel confident in your commitment
- limiting asks for additional perks like appliances, furniture, or closing cost coverage
Sellers tend to want clean, straightforward offers with minimal strings attached. Keep your requests simple and focus on the essentials. Making an agreeable offer means focusing on what really matters: getting the home, not the extras. 
9. Be polite, prepared, and willing to walk away
Real estate transactions are emotional for both buyers and sellers, but maintaining a professional tone throughout negotiations is key. Be responsive, respectful, and cooperative. Don’t push for unnecessary concessions or act entitled.
And above all, be willing to walk away if the deal doesn’t meet your bottom line. That quiet confidence and preparation can give you a stronger position and peace of mind.
Bonus tip: Work with a Redfin real estate agent
When evaluating tips for making an offer on a house, choosing an agent who knows the local market inside and out is one that you should prioritize. Redfin real estate agents are seasoned professionals and can guide your pricing strategy, advise you on how to submit an offer on a house, and negotiate effectively on your behalf. They’ll also help you understand what happens when you make an offer on a house, so there are no surprises from offer to closing.
FAQ: Common questions about making a real estate offer
How do you make the strongest offer on a house?
The strongest offer combines a fair price, minimal contingencies, a high earnest money deposit, a flexible timeline, and a pre-approval letter. Include a personal letter and, if necessary, an escalation clause to stay competitive. Redfin’s guide offers more tips on crafting winning offers.
What is the best way to make an offer on a house?
Start with a strong financial position, research the market, work with an experienced agent, and keep your offer clean and focused. Making it easy for the seller to say yes is one of the tips for making an offer on a house that shouldn’t be ignored.
What not to do when making an offer on a house?
- Don’t lowball in a hot market
- Don’t skip pre-approval
- Don’t overload your offer with contingencies
- Don’t act impulsively without doing proper due diligence
Can I offer 20% below the asking price?
Only in a buyer’s market or if the property is overpriced or sitting on the market. In a competitive market, this might get your offer rejected outright.
What is the lowest you can offer on a house?
There’s no legal minimum, but offering too low can offend sellers or get ignored. Use comps and market data to guide a reasonable low offer.
Is a 20% counteroffer too much?
It depends on the market. In a seller’s market, you might see sellers countering with higher demands. Use your agent’s expertise to assess whether the counter is reasonable or worth walking away from.
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