What Every First-Time Homebuyer Should Know Before Making an Offer

For many first-time buyers, making an offer on a house feels like the moment everything becomes real—and that can be both exciting and intimidating. It’s more than just choosing a number and hoping for the best. An offer reflects your financial readiness, your understanding of the market, and how well you’ve prepared for what happens after the seller says yes. By knowing what to expect before you put anything in writing, first-time buyers can move forward with confidence instead of anxiety, and increase the chances that their offer will be accepted on terms that truly work for them.

Before making an offer on a house, it’s essential to understand exactly how much you can afford—and prove it. A pre-approval letter from a lender shows sellers that a financial institution has reviewed your income, credit, and debts and is willing to lend up to a certain amount. This is different from a quick pre-qualification, which is often based on self-reported information. Pre-approval not only strengthens your offer but also gives you a realistic price range so you don’t fall in love with a home that stretches your budget too far. When multiple buyers are interested, a strong pre-approval can be the deciding factor that sets your offer apart.

The list price is just one piece of the financial puzzle. First-time buyers should look beyond the monthly mortgage payment and consider property taxes, homeowners insurance, HOA dues (if applicable), utilities, and maintenance costs. Closing costs—such as lender fees, title charges, and prepaid taxes—also add up and typically range from a few to several percent of the purchase price. Before making an offer on a house, it helps to calculate what the total monthly and upfront costs will look like so there are no surprises later. A clear, realistic budget helps buyers structure an offer they can comfortably live with long after closing day.

The strength of your offer depends heavily on what’s happening in the local market. In a seller’s market with low inventory and high demand, buyers may need to move quickly, offer close to (or above) asking price, and be prepared for competition. In a buyer’s market, there’s often more room to negotiate price and terms. Before deciding how to approach making an offer on a house, first-time buyers should look at recent comparable sales, average days on market, and whether homes are commonly selling above, at, or below list price. A local real estate professional can interpret these patterns and help align your strategy with current conditions.

Knowing what truly matters to you in a home can shape both your search and your offer strategy. Before you’re ready to commit, it helps to write down your must-haves—such as location, number of bedrooms, or yard size—as well as your nice-to-haves, like upgraded finishes or bonus spaces. Just as important are your dealbreakers: issues like major structural problems, flood zones, or an unworkable commute. When you’re clear on your priorities ahead of time, you’re less likely to make emotional decisions in the moment. This clarity makes it easier to decide how aggressive to be with your offer and when it may be wiser to walk away.

Contingencies are conditions built into your offer that protect you if certain things don’t go as planned. Common contingencies include financing (your ability to secure a loan), inspection (the property’s condition), and appraisal (the home’s value according to the lender). These terms give first-time buyers important safeguards, but they also affect how appealing the offer looks to a seller. In a competitive environment, buyers sometimes adjust timelines or remove less critical contingencies to stand out, but these decisions should never be rushed. Understanding what each contingency means—and what rights it gives you—helps you build an offer that balances protection with competitiveness.

When making an offer on a house, buyers typically include earnest money—a good-faith deposit that shows they are serious about the purchase. This money is usually held in escrow and later applied toward closing costs or the down payment. The amount varies by market, but a stronger earnest money deposit can sometimes make an offer more attractive. It’s important to know under which conditions the earnest money is refundable, usually tied to contingencies like inspection or financing. First-time buyers should have these funds accessible and understand how they fit into their overall cash needed at closing so they’re prepared when the right home comes along.

A home inspection is one of the most important steps after your offer is accepted. It provides a detailed look at the property’s condition, including major systems and structural components. First-time buyers should know that the inspection report will almost always list several issues—this is normal. The goal is to identify significant problems, not to find a flawless home. After the inspection, buyers may request repairs, ask for a credit, or, in serious cases, decide not to move forward if the contract allows. Knowing this process ahead of time helps buyers keep perspective and use the inspection results as a negotiation tool rather than a source of panic.

Once you submit your offer, the seller can accept it, reject it, or send back a counteroffer with different terms on price, closing date, repairs, or other details. This back-and-forth is a normal part of making an offer on a house. First-time buyers should be prepared for negotiation and understand that it may take a few rounds to reach an agreement. It helps to decide in advance how high you’re willing to go on price, which terms you’re flexible on, and where you’re firm. A skilled real estate agent can guide this process, communicate clearly with the seller’s side, and help keep emotions in check while working toward a fair outcome.

Making an offer on a house is a major milestone for any first-time homebuyer, but it doesn’t have to be overwhelming. With a clear sense of budget, a solid pre-approval, an understanding of contingencies, and realistic expectations about negotiations and inspections, buyers can approach this step with confidence. Every document you sign and every term you agree to shapes not only the purchase but your experience living in the home afterwards. By preparing thoughtfully and surrounding themselves with the right support, first-time buyers can turn what might feel like a complicated process into a well-informed, exciting move toward homeownership.

Steve Pemberton Realty Group helps first-time buyers navigate the complexities of making an offer with clarity and confidence. Their team understands how to interpret market conditions, structure competitive offers, and guide clients through every detail—from pre-approval to closing day. With patient communication, local knowledge, and a focus on education, they ensure buyers understand each step and feel supported in every decision. Whether navigating multiple offers or weighing inspection results, their experienced professionals are committed to helping clients secure the right home on the right terms.