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How to Make an Offer On a House (and Win!)

December 16, 2021 | By Reef Merhi
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An important step in purchasing your first home is putting together an offer on a specific house. After you've toured several homes, planned your budget, and decided on the house of your dreams, it can't be yours until you place an offerand it's accepted.

However, putting in an offer isn't as simple as looking at the sale price, then trying to go as low as you can while hoping for the best. First-time homebuyers can lose out on the house they really want without being prepared to make a reasonable offer that sellers will consider and accept. One of the best mortgage companies Texas offers talks about some crucial tips to keep in mind when it comes time to show the seller that you're committed to them and their property with an offer (you hope they won't refuse)!

1. Talk With Your Real Estate Agent

Hopefully, you partnered with an excellent real estate agent early in your homebuying journey. The right agent is on your side from the beginning, so it's important to let them know you've found a house you love, and you're ready to make an offer. Bringing them in early in the process so that they can help you understand your offer options when it comes time to put something together for a specific house.

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The best agents know which houses people are interested in and by how much an owner might be willing to lower their asking price before listing it again. They've worked with plenty of other buyers and sellers, so they probably have good advice for you no matter where you are in the buying process. Working through your agent to make an offer can be instrumental in ensuring you make an appropriate offer that sellers won't dismiss without considering.

If you don't have a real estate agent at this stage, find one before risking an offer that could take you out of the running for a house you have your heart set on.

2. Get Preapproved (Before Making An Offer)

Whether you're looking for the best FHA loan Texas offers or you're considering a conventional loan or USDA loan option, take time to get preapproved before making an offer.

With preapproval, sellers are more likely to take your offer seriously when considering it. A preapproval letter tells sellers (and their agents) that you are serious about buying the house and you're putting your best offer forward. In today's competitive Texas real estate markets, it's safe to assume that other buyers are preapproved. To compete with them, make sure you have the credit needed for FHA loan options to help your offer stand out.

3. Consider Your Best offer Amount

What's the best offer you can make? First-time homebuyers must keep in mind all of the costs associated with buying a home when considering an offer amount.

Before you make your offer, it's essential to know your credit score and down payment amount for the house. If you're preapproved, you should have that information handy. Typically, the more cash buyers are willing to put in at closing, the more likely they will win out over other offers that ask for terms like no money down FHA loans or come from buyers who don't have a preapproval letter.

Talk with your real estate agent about your offer, then listen to their recommendations about how to proceed. If they feel the offer is too low, consider a higher offer as your first bid. However, if a higher offer exceeds your budget, it might be time to keep looking for a house you can afford better.

4. Write the Offer Letter

A well-written offer letter includes details about the house (the significant features you like, why you're excited to live in it, etc.), information about your down payment and closing costs, and your proposed purchase price. While a letter can be personal and sincere, don't overdo your pitch or attempt to win over the sellers.

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If you're not sure how to write an offer letter, let your real estate agent guide you or handle it for you. They know how to craft a letter that stands out without being over-the-top. Your agent should also communicate directly with the seller's agent to deliver your offer letter. 

5. Get Ready to Negotiate

In a competitive real estate market, there's a good chance your first offer letter won't be accepted without some negotiations. For example, if your offer is reasonable and appeals to the seller, they might counteroffer with a higher price point or some additional requests to meet your offered amount. 

Being flexible and offering some concessions (with the guidance of your REALTOR®) can help a seller accept your offer without exceeding your budgetwithout rounds and rounds of negotiations. Know your limits and trust your agent and offer to win!

Get Preapproved With the FHA Mortgage Lenders

Remember: preapproval for an FHA loan, conventional loans, or VA loan can help your offer win in a bidding war! Texas United Mortgage is an FHA-approved lender that's here to help first-time homebuyers find the best financing options and get preapproved. If you're thinking of making an offer on a house, reach out to our team to learn about FHA loan requirements!

Learn more about buying your first house when downloading our free resource, the "First Time Home Buyers Guide!"

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