What Makes a Strong Offer on a House? A Texas Homebuyer's Guide

You found a house you love. 🎉

Now comes the part that can make buyers a little nervous: What should you offer?

It's easy to focus entirely on the purchase price, but a strong offer is about much more than the number at the top of the contract. Price matters, of course, but so do your financing, option period, seller concessions, closing date, and several other terms.

The goal isn't simply to “win” the house. It's to put together an offer that makes sense for the market, the property, and you.

Here are some of the pieces we'll consider when it's time to write your offer.

1. Purchase Price

So...how much should you offer?

Before throwing out a number, we'll look at the bigger picture. That may include recent comparable sales, the home's condition, how long it's been on the market, current competition, price reductions, and other factors that could affect its value.

Sometimes offering below asking makes sense. Sometimes asking price makes sense. And in a competitive situation, a buyer may decide they're comfortable offering above asking.

The important part is understanding why you're offering what you're offering.

2. Earnest Money

Earnest money is a deposit that shows the seller you're serious about purchasing the home.

In our market, 1% of the purchase price is a common starting point. For example, on a $400,000 home that would be $4,000.

But 1% isn't a rule or requirement. You can choose to offer more earnest money, and in a competitive situation, a larger deposit may help strengthen your offer by showing the seller you're serious about moving forward with the purchase.

If the transaction proceeds to closing, your earnest money is generally credited toward the amount you owe at closing...it isn't an additional cost on top of your purchase price.

We'll discuss the amount that makes sense for your offer, your comfort level, and the particular property before deciding what to include.

3. Option Fee + Option Period

For many Texas resale transactions, buyers and sellers negotiate an option period.

When the contractual requirements are met, this gives the buyer an agreed-upon period with an unrestricted right to terminate the contract.

Why does that matter?

Because buying a home involves a lot more investigation than you can reasonably do during a showing.

This is typically when you'll complete your home inspection, investigate concerns about the property, review important documents and gather additional information before deciding whether you're comfortable moving forward.

Both the option fee and the length of the option period are terms that can be negotiated as part of your offer.

4. Seller Concessions

Purchase price isn't the only number we can negotiate.

Depending on your financing, the property, and current market conditions, we may also discuss asking the seller to contribute toward certain buyer expenses.

This is where it's especially important for your real estate agent and lender to work together.

For example, the lowest possible purchase price isn't necessarily the option that leaves you with the least amount of money out of pocket.

We'll look at the numbers and determine which structure makes the most sense for your situation.

5. Closing Date

When do you actually want to own the house?

Your closing date is another part of the offer and can sometimes play a role in negotiations.

We'll consider your lender's timeline, your moving plans, and any information we have about the seller's preferred timing when choosing a proposed closing date.

6. Title + Survey

Your offer will also address things that aren't nearly as exciting as choosing your new kitchen—but they still matter.

Two of those are the owner's title policy and survey.

There may be decisions about who pays certain expenses or whether an existing survey can be used. Rather than automatically selecting an option, we'll talk about what applies to the property and how those choices affect your offer.

7. Financing + Appraisal

If you're financing the purchase, your loan terms become part of the conversation too.

We'll make sure the financing information in your offer accurately reflects your loan and discuss the appraisal-related terms and protections that may apply to your situation.

This is also an area where I don't want buyers agreeing to something simply because they think it's what they have to do to get the house.

If changing or waiving a protection is being considered, we'll talk about what that could mean so you can make an informed decision.

8. What Actually Stays With the House?

Please don't assume that everything you see during a showing comes with the house. 

Certain items may convey with the property, while others may need to be specifically negotiated.

If you're already imagining that gorgeous refrigerator in your kitchen, or you've got your eye on something else in the home, tell me.

We'll determine how it should be addressed in the offer rather than finding out later that you and the seller had two completely different ideas.

What If There Are Multiple Offers?

This is usually when buyers start hearing some version of:

“You have to make your strongest offer!”

Okay...but what does strongest actually mean?

It doesn't automatically mean offering the most money.

Depending on the property and situation, we may discuss several parts of your offer, including:

• Purchase price
• Earnest money and option terms
• Seller concessions
• Closing timeline
• Financing terms
• Expenses you're asking the seller to pay
• Other terms that may matter to the seller

Every choice can involve a tradeoff. My job is to help you understand those tradeoffs and your options.

You decide how aggressive or conservative you want to be.

Before We Hit Send

Before I submit an offer for one of my buyers, I want them to understand what they're agreeing to.

We'll talk through questions like:

• What are we offering?
• How much cash could you need, and when?
• What are we asking the seller to pay?
• What important deadlines and protections are included?
• What happens if the seller counters?

And one of the most important questions:

If the seller says YES to exactly what we're offering, are you comfortable moving forward?

Because that's what we're asking them to do.

A strong offer isn't just one that's attractive to a seller. It's one you understand, you're comfortable with, and you're prepared to honor if it's accepted.

Ready to Start Your San Antonio Home Search?

Whether you're buying your first home, using your VA loan benefit, PCSing to Joint Base San Antonio, or simply making your next move, you don't have to figure all of this out on your own.

I help buyers throughout San Antonio, Schertz, Cibolo and the surrounding areas understand the process, evaluate their options, and make informed decisions from the first home search through closing day.