5 Steps to Writing an Offer on a Home

When writing an offer to purchase a new home, buyers should always partner with the best real estate agent.

Once you find a potential listing that you’re interested in, the next step is writing an offer and submitting it to the seller and their representative agent.

Writing an offer is an important part of the home buying process since it is the first time that a buyer and seller begin discussing a potential transaction. It’s imperative that buyers are able to form strong offers that appeal to sellers and out-beat any competition.

5 Steps to Writing an Offer

To help you prepare for creating and submitting offers on available homes on the market, here’s an overview of the steps involved when writing an offer as well as some helpful tips and best practices.

Step 1: Hire The Best Agent

The best way to start off your market search and strategize the way that you present an offer to sellers is by hiring a top real estate agent in your area.

Talented, experienced, and knowledgeable agents will be able to create a customized plan for how to approach the offer-writing phase based on your specific circumstances. The best agents will ensure that you’re submitting a strong offer that is adjusted according to the current market conditions that will impact the way sellers view your offer.

Step 2: Research the Local Market

comparable homes

Conducting research on the local market conditions will allow you and your agent to understand the factors that will influence the way that sellers will perceive your offer.

Is your market currently experiencing high demand and low inventory, shaping a seller’s market? Or, is the market currently favoring buyers due to high inventory and comparatively low demand?

The details of your offer will need to reflect your market to ensure that you’re making informed decisions when writing your offer.

Step 3: Form Your Offer

Based on the information collected on your local market, you and your agent will write out your offer.

The offer will include the basic details of your buying position, such as the price you’re willing to pay, additional contingencies, and additional information regarding other details, such as your purchasing time frame.

To help you form your offer, look at how comparable homes in your area have performed on the market. Pay attention to the initial listing price, the offer price, and the final sales price to better understand how you should frame your price point.

If the market is currently favoring sellers, you will want to create a competitive offer. Consider bidding slightly over the asking price to compete with other buyers.

earnest money deposit

Sellers should consider offer-strengthening strategies, such as:

  • Earnest money, which is held in escrow to show the seller that you are serious about purchasing their home. If you close on the home, the earnest money is applied to your down payment. If the deal terminates on behalf of the seller, you will receive the earnest money back. If the sale terminates on behalf of the buyer, the seller typically gets to keep the funds.
  • An escalation clause, which commits to raising the offer price to a certain point in case the seller receives a higher competing offer.
  • Proof of funding, in the form of a pre-approval or pre-qualification letter from your lender. This will demonstrate that you are a financially backed buyer that has taken the steps necessary to secure funding.
  • A personal letter, providing the seller with more information about you and your motivation to purchase their home.

If the market is favoring buyers, you may be able to take advantage of the conditions and offer a lower price without adding on the items such as earnest money or an escalation clause. Instead, you may be able to get the seller to negotiate according to your needs and preferences as they try to land the sale.

Speak with your top real estate agent about specific questions for more guidance on your buying position.

Step 4: Submit Your Offer

After writing an offer, your agent will submit the offer to the listing agent.

Once submitted, the seller will review your terms and get back to you with their response. If the seller accepts the offer, you will move forward with more negotiations to come to an agreement and officially begin the transaction.

If the seller does not accept your offer, you will work alongside your agent to find a new property and submit another offer.

Step 5: Come to an Agreement with the Seller

If the offer was accepted, you will be in communication with the seller’s representative to come to a final agreement regarding the preliminary purchasing terms. When all of the details are set, you will move into escrow and take the steps required to close the transaction.


If you’re interested in getting connected with the best agents in your area to help you with writing an offer, find a top agent through Realestateagents.com.

Amber Martinez
Find Your Perfect Agent