Definition
The process of developing your offer terms and structure—price, earnest money, contingencies, and deadlines. Proper preparation requires understanding market conditions and comparable sales.
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Offer preparation involves analyzing comparable sales to establish a competitive price, determining an earnest money amount, deciding on the inspection period length, selecting appropriate contingencies, setting reasonable deadlines, and identifying any special terms or requests. A well-prepared offer reflects the buyer's seriousness and increases the likelihood of acceptance. It requires balancing being competitive without overpaying or creating unrealistic deadlines.
Pro Tip
Your agent should provide a comparative market analysis showing similar properties' sale prices.
Example
A buyer's agent analyzes 15 comparable sales to establish an appropriate offer price for a home, recommends earnest money of $10,000 to demonstrate seriousness, proposes a 10-day inspection period, and includes standard contingencies for financing and title review.