Ready to Make an Offer? Here’s What You Need to Know

Ready to Make an Offer? Here’s What You Need to Know

Ready to Make an Offer? Here’s What You Need to Know

You worked with a loan officer to get pre-approved, pinpointed the neighborhoods you like and the budget you can afford, and found the home you want to purchase. Now’s the time in the homebuying process to put on your negotiating hat and win the deal.

Here’s what you need to know about making an offer on a property.

Don’t Be Timid

Sometimes the negotiating process is the most stressful part of purchasing a home. Many people don’t feel comfortable with the back-and-forth offers and counter-offers. Lean on your real estate agent to guide you through the process. Remind yourself you’ve done all the work to get to this point, and feel confident in your decision.

Add Money to Escrow

The more funds you add to escrow, the more seriously sellers will take your offer. Escrow, often referred to in the negotiating process as “earnest money” will be included in your offer letter.

Know When You Can Make an Offer

You can make an offer anytime, as long as the property’s on the market. There may be other buyers ahead of you, and the seller might have already accepted one based on the buyer selling their home or other actions. This situation is called “pending.” If you find your dream home, and it has a pending status, you can still make an offer in case that deal falls through.

How Can You Decide What to Offer?

Look at the home price, what other homes are selling for in the area, and the property’s condition. Let your real estate agent offer insight to maximize the chances you win the bid. If your budget allows, don’t be afraid to offer more than the asking price, especially if the home is in a popular neighborhood.

Handling Counteroffers

Once you make the initial offer, the sellers may accept it, decline it, or counteroffer with a new price that’s typically between what you offered and the amount they were asking. If they counteroffer, you’ll have 24-48 hours to decide if you want to accept that offer or make a counteroffer of your own. It’s important to be easily reachable during this phase of negotiation, so you can react quickly to the seller’s communication.

Dealing With Bidding Wars

You might be one of many buyers who want the property. This situation can be stressful and cause the process to drag out. You’ve already made yourself competitive by getting that pre-approval letter from your loan officer, giving the seller confidence that you can get financing. You can boost your chances even more by waving your contingencies, which are the repairs, replacements, or renovations you might have asked the seller to provide. Another way to come out on top is to add an escalation clause to your offer, stating you’re willing to raise your offer by a certain amount if another buyer matches yours.

If you’ve found your dream home and are ready to make an offer, act rationally but proactively and trust your real estate agent to help you navigate the negotiation process. It might take more than one attempt, but you’ll eventually be celebrating your move into your new home.


Mortgage Investors Group, based in Tennessee, offers residential financing in a number of states in the southeast, See MIG Service Areas. Terms and conditions to apply to home financing. We want to share with you the loan terms vary based on several characteristics and your financial profile. These include but are not limited to loan program, loan purpose, occupancy, credit history, credit score, assets, and other criteria per loan type. The repayment terms and interest rate may vary from time to time. The terms represented here are based on certain assumptions outlined below and/or noted on the loan outline page. Additional details concerning privacy, program disclosures, licensing specifics may be found at Legal Information.

MIG Loan Officers will help gather the information needed for an individual assessment to provide home financing which matches the loan characteristics with your home financing needs based on your financial profile, when you are ready to begin a full loan application. For estimates and general information before that step, the basis for which the mortgage financing information are as follows:

  • Rates are subject to change at any time.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Payments will vary based on program selection, current rates, property location, etc.
  • Not all programs are available in all states.
  • Some loan programs may not be available to first time home buyers.
  • Terms and conditions apply, which may include restrictions or limits per loan program.
  • Information is generally based on primary residence occupancy with no cash out when refinancing.
  • Unless otherwise stated, terms shown are estimates based in part on credit score of 700 or higher; owner occupancy, escrow account is established for taxes and insurance(s); debt-to-income ratio no higher than 43.0%; PMI applies to conventional loan programs over 80.0% LTV; VA,FHA & RD require insuring fees included in loan and/or payment; fixed rate, 30 year term.

An MIG Loan Officer is available to help with your financial details to determine which characteristics apply to your situation for a personalized look into which loan program best fits your home financing needs. Please use the Find a Loan Officer link or reach out to Mortgage Investors Group at 800-489-8910. Equal Housing Lender 1.2020