{"id":24199,"date":"2021-05-27T10:33:37","date_gmt":"2021-05-27T17:33:37","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=24199"},"modified":"2025-01-24T08:15:27","modified_gmt":"2025-01-24T16:15:27","slug":"buyer-how-to-make-an-offer-on-a-house-with-a-realtor","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/buyer-how-to-make-an-offer-on-a-house-with-a-realtor\/","title":{"rendered":"You\u2019re Not Alone! Here\u2019s an 11-Step Guide on How to Make an Offer on a House With a Realtor\u24c7"},"content":{"rendered":"

When you\u2019re thinking of making an offer<\/a> on a home, sometimes the logistics seem as elusive and confusing as a secret handshake. Closing costs? Contingencies? Contract clauses? How is a buyer supposed to keep up?<\/p>\n

Thankfully, Realtors\u24c7 know the step-by-step process of making a solid offer on a home. They\u2019ve got that \u201csecret handshake\u201d experience that can make an offer go smoothly, even in a competitive market.<\/p>\n

Courtney Kattengell<\/a> has been a licenced Realtor\u24c7 in the New Orleans<\/a> area since 2006. She says:<\/p>\n

\u201cHaving a buyer\u2019s agent means you’re going to have somebody looking out for your best interest and keeping you on track. They\u2019ll be making sure you’re shopping within your budget, making sure that you’re shopping within the criteria of your loan product, and helping you get preapproved with a reputable lender. A good Realtor\u24c7 is going to check all those boxes for you.\u201d<\/p><\/blockquote>\n

\"An<\/a>
Source: (Sarah Pflug \/ Burst)<\/figcaption><\/figure>\n

What is a Realtor\u24c7?<\/h2>\n

A Realtor\u24c7 is a licensed real estate agent and a member of the National Association of Realtors (NAR).<\/p>\n

NAR holds its members to a code of ethics, which helps clients trust the safety and integrity of the agent. Most real estate agents (which are licensed individually in each state) are also Realtors\u24c7 \u2013\u2013 but not all of them! As you\u2019re looking for a real estate agent, you may want to inquire about their membership status in NAR.<\/p>\n

How to make an offer<\/a> on a house with a Realtor\u24c7<\/h2>\n

Step 1: Find the right Realtor\u24c7 for you<\/h3>\n

Listing sites where you browse homes for sale usually have a sponsored agent pop-up that will lead you to a real estate agent. But not all agents have the same experience and expertise. Finding a Realtor\u24c7<\/a> should begin with some focused research.<\/p>\n

In addition to being members of NAR, Realtors\u24c7 may also have additional qualifications or certifications.<\/p>\n

For instance, as you search for Realtors\u24c7 within the HomeLight<\/a> platform, you may see designations such as Certified Residential Specialist, Accredited Buyers Representative, Seller Representative Specialist, Military Relocation Professional, Accredited Land Consultant, Seniors Real Estate Specialist, and more. You may want to work with someone who carries a certification that aligns with your needs.<\/p>\n

Kattengell says it\u2019s also important to look for an agent who is active in the market.<\/p>\n

\u201cA full-time Realtor\u24c7 is going to have their finger on the pulse of what\u2019s going on in the area. We pour our whole heart into it. It\u2019s our entire income, so we take it very seriously.\u201d<\/p>\n

You also want to make sure that your Realtor\u24c7 has experience negotiating offers on homes similar to the one you\u2019re looking for. Townhouse<\/a> deals are different from land purchases<\/a>; condos<\/a> are different from single-family homes. Look for an agent who is comfortable with the type and price range of property you want.<\/p>\n

When you agree to work with a Realtor\u24c7 you enter into a fiduciary agreement, which means that the agent is obligated to represent your best interests. Sometimes an agent will ask you to fill out paperwork that states the nature of your representative relationship, but oftentimes you will work together in good faith.<\/p>\n

Usually, there is no Realtor\u24c7 fee or payment incurred by buyers. The agent\u2019s commission is normally a part of the seller\u2019s closing costs<\/a>.<\/p>\n

Step 2: Get preapproved for a mortgage<\/h3>\n

If you plan to get a mortgage loan, you should get preapproved by a lender prior to making an offer. Sellers will likely request to see a preapproval letter as a way to determine if you\u2019re a serious buyer. Preapproval letters also give the seller an indication that closing can happen in a timely manner.<\/p>\n

It\u2019s best to shop around for the right lender and loan products. Your Realtor\u24c7 can help direct you toward lenders if you\u2019re not sure where to start.<\/p>\n

Keep in mind that mortgage preapprovals are not binding, and you can always switch to another lender later, if necessary. But doing the research upfront can help make life easier once your offer is accepted.<\/p>\n

Step 3: Identify the target of your offer<\/h3>\n

This is just a fancy way of saying \u201cfind your house.\u201d A Realtor\u24c7 can definitely help with this stage!<\/p>\n

Work together to determine a list of must-haves, including location, size, and features. Your Realtor\u24c7 will search the multiple listing service (MLS)<\/a> to find available homes that fit your criteria. You can also browse online listing sites to give your agent an idea of what homes appeal to you.<\/p>\n

After narrowing down your search online, you\u2019ll likely want to visit a few properties in person. According to NAR, buyers look at an average of nine homes<\/a> in their search for the perfect one. But once you\u2019ve found it \u2013\u2013 hooray! You\u2019ve got your target!<\/p>\n

\"An<\/a>
Source: (Sarah Pflug \/ Burst)<\/figcaption><\/figure>\n

Step 4: Determine whether you can make it work<\/h3>\n

Your preapproval limit may be much greater than what you actually want to spend. Now\u2019s the time to crunch the numbers and see how much you can really afford.<\/p>\n

First, you\u2019ll want to determine how much you want to contribute as a down payment<\/a>. The minimum down payment you\u2019ll need depends on your credit score<\/a> and loan type. The more you put down upfront, the lower your monthly payment will be.<\/p>\n

You\u2019ll also want to set aside money for closing costs. Closing costs for the buyer are typically between 2% and 5% of the purchase price<\/a>. Your Realtor\u24c7 can help you determine a closing cost estimate in your area prior to making an offer; your lender will give you a much more accurate number on your Loan Estimate<\/a> document after you make an offer and apply for a mortgage.<\/p>\n

And finally, you\u2019ll need to be prepared with cash for the earnest money deposit. Earnest money is a good-faith deposit that will be due a few days after your offer is accepted and counted as a credit toward your closing costs or down payment (or both). It shows the seller that you won\u2019t back out of the contract \u2013\u2013 if you do, you\u2019ll lose the earnest deposit.<\/p>\n

An average range for earnest money is between 1% and 3% of the purchase price<\/a>, but the norms vary by locale. Talk to your Realtor\u24c7 about the standards in your area.<\/p>\n

Step 5: Discuss the price with your agent<\/h3>\n

Once you\u2019ve determined if you can afford the home, you\u2019ll need to determine if the home is priced right. Your agent will run a CMA (competitive market analysis) and pull comps (comparable recently sold home sales) to determine whether the asking price is fair<\/a>.<\/p>\n

When looking at similar home sales, you\u2019ll want to make adjustments for the condition of the home, its time on the market, any differences between the homes sold and the home you want to buy, and the current market reality. Your Realtor\u24c7 will give you advice in these areas, then help you create an offer price<\/a> that\u2019s in your best interest.<\/p>\n

Step 6: Talk through any contingencies<\/h3>\n

Your Realtor\u24c7 will need to know what types of contingencies<\/a> you need in the offer. Once signed, your offer to purchase is legally binding, so if there\u2019s any reason you might need to back out of the deal, that needs to be addressed upfront in the form of a contingency.<\/p>\n

Normal contingencies might include provisions for financing, an appraisal, inspections, or the sale of your current home. Ask your Realtor\u24c7 what a typical offer looks like in your market, and talk through what contingencies will mean in your particular situation (though some, like the financing contingency, may be unavoidable if you\u2019re using a mortgage). In some markets, it\u2019s typical for buyers to waive certain contingencies, and you\u2019ll need to know that going in if you want to make the strongest possible offer.<\/p>\n

Step 7: Write out the timeline<\/h3>\n

Your Realtor\u24c7 will also help you create a timeline prior to making an offer, mostly because some of the key dates will need to be documented in the offer paperwork.<\/p>\n

Together, you\u2019ll need to determine your ideal closing date \u2013\u2013 this is tied to how quickly your lender can be ready to close the loan. You\u2019ll also need to talk through the inspection period, the earnest money deposit date, the walk-through date, the date of possession, and any other contingency periods.<\/p>\n

Step 8: Sweeten the pot, if you can<\/h3>\n

In hot seller\u2019s markets, it might help to include a personalized letter<\/a> to the seller. If the seller is receiving multiple offers<\/a>, they may be won over to accept yours if you appeal to their emotions.<\/p>\n

Highlight the reasons why you love their home and create a mental picture of how you\u2019ll use the space in the future. Your Realtor\u24c7 is well-versed in these types of letters and can guide you in verbiage that could seal the deal.<\/p>\n

Another Realtor\u24c7 \u201ctrick\u201d in seller\u2019s markets might include an escalation clause. This allows you to make the offer at the price that you prefer, but it will then automatically escalate your offer price to match or exceed the highest offer by a certain amount.<\/p>\n

Good escalation clauses are always written with limits so you\u2019re not on the hook for a purchase price outside of your means.<\/p>\n

\"An<\/a>
Source: (NEW DATA SERVICES \/ Unsplash)<\/figcaption><\/figure>\n

Step 9: Put it all together<\/h3>\n

There\u2019s more to an offer than simply naming a price. A complete offer to purchase<\/a> should include the following, at minimum:<\/p>\n