Making an Offer on a House: What Goes Into It and What Happens Next

What a Purchase Offer Actually Contains

When you're ready to buy, your agent will prepare a formal purchase offer — a document that covers far more than the dollar amount you're proposing. Understanding each component helps you make informed decisions rather than just signing where you're told.

A standard offer typically includes:

• Purchase price: The amount you're offering to pay.
• Earnest money deposit: A good-faith payment, usually 1–3% of the purchase price, held in escrow. It signals you're serious and will be applied toward your down payment or closing costs at settlement.
• Financing terms: Whether you're paying cash or getting a mortgage, and what loan type (conventional, FHA, VA) you've been pre-approved for.
• Proposed closing date: When you'd like to take ownership, typically 30–60 days out to allow time for financing and inspections.
• Contingencies: Conditions that must be met for the deal to proceed. Common ones include inspection, financing, and appraisal contingencies.
• Inclusions and exclusions: Which fixtures, appliances, or items stay with the home or go with the seller.

Before structuring your offer, it's worth doing a market conditions check-in to understand current pricing dynamics in your target area.

Contingencies: Protection With a Trade-Off

Contingencies are clauses that give buyers the right to exit the contract — or renegotiate — if specific conditions aren't met. They're essential safeguards, but they're not free of consequence.

The three most common contingencies are:

Financing contingency

Protects you if your mortgage is denied. Without it, losing your loan could mean losing your earnest money too.

Inspection contingency

Allows a licensed inspector to evaluate the home's condition. If serious issues are found, you can request repairs, a price reduction, or walk away.

Appraisal contingency

Ensures the home appraises at or above the purchase price. If it doesn't, you can renegotiate or exit the contract rather than paying more than the home is worth.

In competitive markets, some buyers waive certain contingencies to make their offers more attractive. This is a significant risk — waiving an inspection contingency, for example, means accepting the home as-is. First-time buyers especially should discuss the implications with their agent before removing any protections.

What Happens After You Submit Your Offer

Once your offer is submitted, the seller has three options: accept, reject, or counter. Understanding each outcome prepares you for what's next.

Acceptance: The seller signs the offer as written. Both parties are now in contract, and the clock starts on your contingency deadlines.

Rejection: The seller declines outright, often without explanation. This is more common in situations where multiple offers are received and yours doesn't compete on price or terms. If you've been rejected, our guide on why offers get rejected covers what buyers often overlook beyond price.

Counteroffer: The seller proposes different terms — a higher price, different closing date, fewer contingencies, or a larger earnest money deposit. You can accept the counter, reject it, or submit your own counter in return. This back-and-forth can go through several rounds before both sides agree or one party walks away.

How aggressively you negotiate should reflect local market conditions. In a seller's market, concessions are harder to win; in a buyer's market, you have more leverage. See our breakdown of buyer's vs. seller's market dynamics for guidance on adjusting your strategy.

Once both parties sign the same version of the offer, you're officially under contract. From there, you'll typically schedule your home inspection, finalize your mortgage application, and begin the countdown to closing — all covered in detail in the full home-buying process guide.