SCHNEIDER Real Estate, Inc.
Roger Schneider, SCHNEIDER Real Estate, Inc.
Email: [email protected]

Making offers in any market: A homebuyer's guide

by Roger Schneider 11/03/2024

While buying a home might seem as simple as paying the asking price, knowing the ins and outs of making offers is crucial to buyer success. Everything from the terms of your mortgage loan to eventual closing costs can affect the amount you spend on your home, and making the right offer can significantly affect your chances in a competitive market.

Here are some of the basics of making an offer on a house:

Find the right home for you

Start by searching online listings for properties to view, or book a tour with an agent. The more knowledgeable you can be about the property, its location and history, the more informed your offer will be. And don't forget, your real estate agent can use their expertise to guide you every step of the way.

Write your initial offer

When it's time to make your first offer, consult your real estate agent for help choosing a starting price. Consider your own budget as well as the local market, home condition and seller situation.

Decide your earnest money offer

An earnest money deposit is an upfront amount of money included with your initial offer on a house. It's used as a sign of good faith, and also a form of insurance for the seller in case you back out of the sale. 

Typically, the expected amount for this deposit is between 1% and 3% of the home's purchase price. However, if you're in a highly competitive market, it can benefit you to offer up to 10%.

Consider your contingencies

A contingency is a provision in your offer which protects your interests in case the unexpected happens between your offer on a house and closing. This allows you to withdraw your deposit under agreed upon circumstances.

One standard contingency example is a home inspection contingency, which allows you to back out of the sale without loss if the inspection uncovers any major problems with the property.

Real estate agents can help you decide what contingencies could work best in your favor. Depending on whether you're in a seller's market or a buyer's market, some strategies might work better than others.

About the Author
Author

Roger Schneider

SCHNEIDER Real Estate, my family's business has been at the forefront of our area's Real Estate transactions for over 40 years! With experiences in the following areas; St. Charles, St. Louis, Lincoln, Warren, Jefferson County, I help both buyers and sellers meet their real estate objectives. I have extensive knowledge of each of the communities located in and around St. Charles, and I will work tirelessly on your behalf to make your next St. Peters home buying or OFallen home selling experience a pleasant and successful one.For sellers, it is my commitment to help sell your home or property in a timely fashion while helping you attain the highest possible price for your real estate. If you are interested in receiving a free home valuation, I encourage you to fill out my free home valuation form.For buyers looking for homes or other real estate opportunities here in St. Charles or other surrounding communities, I will work with you to find your ideal home. I will provide you with all of the necessary tools for finding the right property. From free access to search almost all St. Charles, St. Louis, Lincoln, Warren, Jefferson County area homes, to the ability to fill out My Dream Home Finder Form, everything I can possibly provide will be at your service. In addition, once we've narrowed down what you are looking for, we can begin the home showing process so you can get a closer look at the homes that should be a good fit. I help negotiate the best possible deal for my clients with each and every real estate transaction.Nothing satisfies me more than seeing the smiles that come with a successful real estate transaction. Thanks again for considering me as your Realtor.