You've found a house you really like.
Maybe you've toured several homes already, and this is the first one that feels right. Or maybe you walked through the door and immediately started imagining yourself living there.
Then comes the question almost every buyer asks:
“How much should I offer?”
The answer isn't always as simple as looking at the asking price and choosing a number above or below it.
An offer to purchase a home can include several terms—not just the price. Depending on the property and your situation, you may need to think about things such as the due diligence fee and earnest money deposit, your proposed closing date, seller-paid expenses you may want to request, personal property, financing, and other terms of the offer.
You'll also want to consider information about the property and the current market before deciding what you're comfortable offering.
Your real estate agent can help you research the property, review relevant market information, explain the different parts of the offer, and discuss things you may want to consider.
But ultimately:
You decide what you're willing to offer and which terms you're comfortable with.
There isn't a magic formula that works for every house.
The goal is to understand the information available to you, understand the terms you're offering, and make a decision that makes sense for you.
Let's look at some of the things you may want to consider before you make that offer.
Start With the Property and the Market
The asking price is usually the first number you'll see when you're considering a home—but it shouldn't necessarily be the only number you consider.
A seller chooses an asking price for the property. That price may be influenced by recent sales, current competition, the condition of the home, the seller's goals, and other factors.
Before deciding what you're comfortable offering, your real estate agent can help you look at additional information about the property and the local market.
That may include:
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Recent sales of similar homes in the area
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Similar homes that are currently for sale
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How long the property has been on the market
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Whether the asking price has changed
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The home's condition, features, and location
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What you know about current market activity
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Other information that may be relevant to the particular property
What Are Comparable Sales?
You may hear your agent use the word “comps.”
Comps are comparable properties—usually homes with characteristics similar to the property you're considering—that can provide useful information about what buyers have recently paid for similar homes.
No two homes are exactly alike, so comparing properties isn't simply a matter of finding another house with the same number of bedrooms and bathrooms.
Location, size, age, condition, lot, upgrades, features, and the timing of the sale may all matter when evaluating how useful a particular comparable sale is.
Your agent can help you review relevant comparable properties and market information so you have more context before deciding what you want to offer.
But remember:
Market information can help inform your decision. It doesn't make the decision for you.
A home may be worth more to one buyer than another because buyers have different budgets, priorities, timelines, and alternatives.
The goal isn't to find a number that guarantees the seller will say yes.
The goal is to gather useful information so you can decide what you're comfortable offering for that particular home.
Price Isn't the Only Part of an Offer
Purchase price is important, but it's only one part of an offer.
Two buyers could offer the exact same price for a home and still present very different offers because the other terms may be different.
Depending on the transaction, an offer may also address things such as:
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The due diligence fee
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The earnest money deposit
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The proposed closing date
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Seller-paid expenses the buyer is requesting
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Personal property the buyer wants included
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Financing-related terms
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Other terms or conditions included in the offer
A seller may consider the overall offer when deciding whether to accept it, reject it, or make a counteroffer.
For example, one buyer might offer a higher purchase price but request that the seller pay certain expenses. Another buyer might offer a slightly different price with different terms.
Those aren't necessarily the same offer from the seller's perspective.
That's why it's helpful to think beyond:
“How much should I offer?”
and also ask:
“What terms am I offering?”
Your real estate agent can explain the different parts of the offer, discuss how those terms work, and help you think through the options available to you.
But each decision may involve tradeoffs, and the terms you're comfortable with may be different from the terms another buyer is comfortable with.
A strong offer isn't simply about making every term as aggressive as possible. It's about understanding what you're offering and making informed decisions about the amount of money and level of risk you're comfortable with.
Due Diligence Fee and Earnest Money — What's the Difference?
If you're buying a home in North Carolina, two terms you're likely to hear when preparing an offer are due diligence fee and earnest money deposit.
They aren't the same thing, and it's important to understand the difference before deciding how much you're comfortable offering.
Due Diligence Fee
When the commonly used North Carolina Offer to Purchase and Contract is used, the due diligence fee is a negotiated amount, if any, paid by the buyer to the seller in connection with the buyer's right to conduct due diligence during the agreed-upon due diligence period.
A due diligence fee isn't required by North Carolina law, and the amount—if one is offered—is negotiable.
Once the contract becomes effective and the fee is paid, the money generally belongs to the seller.
If the purchase successfully closes, the due diligence fee is credited to the buyer at closing.
However, if the buyer decides to terminate the contract during the due diligence period, the seller will generally keep the due diligence fee. There are limited circumstances in which the fee may be refundable under the contract, so buyers should understand the terms of their particular agreement.
That's why the amount of due diligence fee you offer deserves careful thought.
You should understand that you may not get that money back if you decide not to purchase the home.
Earnest Money Deposit
Earnest money is also an amount negotiated as part of the offer, but it is generally held in a trust or escrow account rather than becoming the seller's money immediately.
If the transaction closes, the earnest money is credited to the buyer at closing.
If the buyer properly terminates the contract during the due diligence period, the earnest money is generally returned to the buyer.
But once the due diligence period expires, the buyer's earnest money may be at risk if the buyer later fails to complete the purchase.
So How Much Should You Offer?
There isn't one amount that's right for every transaction.
The amount of due diligence fee and earnest money you decide to offer may depend on the property, current market conditions, the other terms of your offer, your circumstances, and the amount of financial risk you're comfortable accepting.
Your real estate agent can explain how these terms work, discuss factors you may want to consider, and help you understand the potential consequences of the amounts you're considering.
But don't choose an amount simply because you think that's what you're “supposed” to offer.
Before committing money to either one, make sure you understand where the money goes, when it may be refundable, and what could happen to it if you decide not to complete the purchase.
If you'd like a broader look at the money you may need throughout the buying process, read what out-of-pocket costs you may encounter when buying a home.
Think About the Closing Date and Other Terms
Once you've thought about price, due diligence, and earnest money, there are still other parts of the offer to consider.
One of them is the closing date.
Your preferred closing date may depend on things such as your financing, your current housing situation, how much time your lender needs, and when you're prepared to complete the purchase.
The seller may have timing needs, too.
For example, a seller may be trying to coordinate the sale of one home with the purchase of another, relocating for work, or hoping to close by a particular date.
That means the closing date can be another part of the offer that matters to both sides.
What Else Might Be Included in Your Offer?
Depending on the transaction, you may also need to think about things such as:
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Whether you're asking the seller to pay certain buyer expenses
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Personal property you would like included with the home
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Financing-related terms or addenda that apply to your purchase
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Other terms or conditions that may be important to you
Some of those decisions can affect how much money you'll need, how the transaction is structured, or how the seller views the overall offer.
For example, asking a seller to contribute toward certain buyer expenses may help a buyer with the amount of money needed for the purchase, but it's still a term the seller will consider along with the rest of the offer.
That's why it's helpful to look at the offer as a whole rather than focusing on only one number.
Price matters—but so do the other terms you're asking the seller to accept.
Your real estate agent can help you understand the different parts of the offer and discuss the options available to you so you can decide which terms best fit your situation.
Should You Offer Above or Below the Asking Price?
One of the most common questions buyers ask is:
“How much below the asking price should I offer?”
But that's not always the best place to start.
An asking price doesn't automatically tell you whether a home is priced high, priced low, or reasonably positioned based on the available market information.
Depending on the property and the market, a buyer might decide to offer:
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Below the asking price
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At the asking price
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Above the asking price
None of those choices is automatically right or wrong.
Before deciding, it can be helpful to consider things such as:
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What comparable homes have recently sold for
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How the home compares with those properties
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How long the property has been on the market
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Whether the seller has changed the asking price
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The condition and features of the home
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Current activity in the local market
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Whether you know there are other offers
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How much you want the property and what you're comfortable paying for it
What If There Are Multiple Offers?
If more than one buyer is interested in the same property, you may find yourself in a multiple-offer situation.
That doesn't necessarily mean you have to offer more than the asking price.
It does mean you'll need to decide what price and terms you're comfortable offering while understanding that the seller may have other options to consider.
Your agent can help you review the information that's available and discuss different approaches, but no one can guarantee what another buyer will offer or which offer a seller will choose.
This is also where it's especially important not to let the excitement of wanting a particular home push you beyond decisions you're comfortable with.
Before submitting your offer, ask yourself:
“If the seller accepts this offer, will I still feel comfortable with the price and terms I've agreed to?”
And there's another question worth considering:
“If the seller doesn't accept my offer, will I be comfortable knowing this was the amount and these were the terms I was willing to offer?”
Those two questions can help you think about the decision from both directions.
The goal isn't to “win” at any cost.
The goal is to make an informed offer that you understand and are prepared to follow through with if the seller accepts it.
What Happens After You Submit the Offer?
Once your offer has been prepared, signed, and submitted to the seller, the waiting begins.
The seller will review the offer and decide how they want to respond.
Generally, the seller may:
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Accept your offer
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Reject your offer
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Make a counteroffer
If the seller signs your written offer without making changes and the seller's acceptance is communicated back to you or your agent, a contract may be formed.
If the seller rejects the offer, you can decide whether you want to consider another property or, depending on the circumstances, whether you want to submit a different offer.
And if the seller makes a counteroffer, you'll have another decision to make.
What Is a Counteroffer?
A counteroffer means the seller isn't accepting your offer exactly as you submitted it but is proposing different terms.
The seller might propose a different:
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Purchase price
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Due diligence fee
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Earnest money deposit
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Closing date
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Amount of seller-paid expenses
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Other term of the offer
You can then review the proposed changes with your real estate agent and decide how you want to respond.
You may agree to the seller's proposed terms, reject them, or decide to propose different terms of your own.
Negotiations can sometimes involve several conversations or changes before the buyer and seller reach an agreement—or decide they aren't going to reach one.
That's why it's helpful to know your priorities before you begin.
Which terms matter most to you?
Where do you have some flexibility?
And where have you decided you're not comfortable going any further?
Your real estate agent can help you understand what is being proposed, discuss your options, communicate your decisions, and prepare the appropriate real estate documents.
But just as when you made the original offer, you remain the decision-maker.
And if you and the seller do reach an agreement?
That's when the homebuying process moves into an entirely new stage.
You're under contract—and now the due diligence period becomes extremely important.
Before You Make the Offer
When you find a home you love, it's easy to focus on one question:
“What should I offer?”
But before you sign an offer, there are several questions worth asking yourself:
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What information have I reviewed about the property and comparable sales?
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Am I comfortable with the purchase price I'm offering?
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Do I understand my due diligence fee and how much of that money may be at risk?
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Do I understand how my earnest money deposit works?
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Am I comfortable with the proposed closing date?
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Am I asking the seller to pay any of my expenses?
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Do I understand the other terms included in my offer?
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If the seller accepts this offer exactly as written, am I prepared to move forward?
You don't have to become an expert in real estate contracts before buying a home.
But you should understand what you're agreeing to before you sign.
Ask questions when something isn't clear. Talk through your options with your real estate agent. And when a question requires advice from your lender, closing attorney, or another professional, get the information you need before making your decision.
The goal isn't to create the “perfect” offer.
The goal is to make an informed offer that reflects what you're comfortable paying, the terms you're willing to accept, and the amount of financial risk you're prepared to take.
Thinking About Buying a Home in Pitt County?
If you're looking at homes in Greenville, Winterville, Ayden, Farmville, Grimesland, or elsewhere in Pitt County, you don't have to figure out the offer process on your own.
Use the home search at the top of this page to explore homes currently available throughout Pitt County.
And when you find a home you're interested in, I can help you research the property, review relevant market information, understand the different parts of an offer, and work through the questions you may have before deciding how you'd like to proceed.
Whether you're ready to make an offer or you're still learning how the homebuying process works, feel free to reach out.
Denise Davis, REALTOR®
Fresh Start Realty
Serving Greenville & Pitt County, North Carolina
📞 Phone: 252-902-9006
✉️ Email: denisedavis@pittcountyliving.com
