A successful Offer can typically be boiled down to careful preparation and savvy negotiation.

Unless you have years of real estate experience under your belt, carrying out the two cornerstones of a successful offer can be challenging. That’s why hiring the services of a real estate Agent is crucial.

Houston is a rapidly growing market, making navigating the offer-making process even more nuanced. Buyers will have to move quickly when buying a home of their dreams, as competition is usually just around the corner. Expert guidance will help you gather the necessary paperwork efficiently and quickly structure an enticing offer.

Below, the Prevu Real Estate team will guide aspiring buyers on everything they need to know about making an offer in Houston, Texas.

How to make an offer in Houston

• Get an underwritten pre-approval
• Interview multiple buyer’s agents
• Leverage commission rebates for purchasing power
• Prepare necessary paperwork
• Consider contingencies
• Understand the offer process

Get a fully underwritten pre-approval

A pre-approval letter is a non-negotiable in a competitive market like Houston. It shows the seller that you are ready and able to proceed with the purchase, giving you an edge over other potential buyers who may not have considered their financing needs. 

Ensure you provide your mortgage lender with all necessary documentation, such as income verification and credit history, to expedite this process. The earlier you have all your paperwork together and secure a pre-approval, the sooner you’ll know your price range and be ready to place an offer on a home.

Remember, a fully underwritten pre-approval is different from a regular pre-approval. The former is a more thorough and reliable assessment of your borrowing capacity, helping you formulate your offer and streamline the purchasing process by allowing you to close quicker once your bid is accepted.

Interview multiple buyer’s agents

A buyer’s agent can be an ultimate guide for the entirety of your home-buying journey. But they are especially indispensable when it’s time to prepare and negotiate an offer.  

Interview multiple agents to find someone who deeply understands the Houston market and aligns with your specific needs and preferences. Look for an agent with a proven track record in the type of property and neighborhood you’re interested in.

A good buyer’s agent will guide you through every step of the offer-making process, from identifying potential properties to crafting and negotiating your offer. They provide valuable insights into market trends, pricing strategies, and negotiation tactics. You can also leverage their professional contacts in case you need the services of a real estate attorney or title company recommendation.

Ask prospective agents about their experience with recent transactions in Houston, their negotiation style, and how they plan to represent your interests. The right agent will not only have the expertise and local knowledge but will also communicate effectively and work diligently on your behalf. 

Most importantly, ask if they can offer you a commission rebate so that you can potentially save after closing on your new home.

Leverage commission rebates for purchasing power

Extra cash in your pocket is always an excellent way to end a homebuying experience in Houston, but Commission Rebates can be even more versatile than providing extra savings.

Simply put, commission rebates are extra funds buyers can leverage when working with a brokerage that offers them; they are essentially a portion of the buyer’s agent’s commission given back to the buyer after closing. 

Brokerages like Prevu Real Estate unlock commission rebates for buyers to help them make their home purchases more affordable. Depending on the final purchase price of your home in Houston, you can potentially save thousands of dollars. 

Rebates are extremely effective at helping offset expensive closing costs, start up a renovation budget, or simply replenish savings after the transaction.

Prepare necessary paperwork

Though it may be the most hectic step of the offer-making process, organizing your paperwork from the get-go can help make your life much easier. 

This includes your mortgage pre-approval letter and proof of funds for your down payment and closing costs. Your agent can help you compile and organize these documents to ensure you're fully prepared when the time comes to make an offer.

In addition to financial documents, you may need to provide other information, such as personal identification or a letter of intent. This letter is your opportunity to connect with the seller personally, explaining why their home is right for you. While not always required, it can be a powerful addition to your offer, especially in a competitive market.

Having these documents readily available will speed up the offer process and demonstrate to the seller that you are organized and serious about your purchase. 

Consider contingencies

Contingencies are conditions that must be met for a real estate transaction to proceed. Common contingencies include home inspections, financing, and appraisal. While waiving contingencies can make it more likely that the seller accepts your offer, it also increases your risk.

Work with your agent to understand which contingencies are advisable to include and which can be safely waived. For example, you might consider waiving the financing contingency if you have the pre-approval we mentioned earlier. However, be cautious about waiving the inspection contingency, which can leave you vulnerable to unforeseen repair costs.

Your agent can provide valuable guidance on balancing making your offer appealing with protecting your interests. Remember, each contingency you waive increases your risk, so it's important to make these decisions carefully and with full knowledge of the potential consequences.

Understand the offer process

Your buyer’s agent will play a vital role in this stage. They can advise you on the current market value of the home and help you determine a competitive yet fair offer price. They’ll also guide you on the finer points of the offer, such as the earnest money deposit into an escrow account and all the steps leading up to the closing date.

Moreover, it’s important to be prepared for negotiation. In a market like Houston’s, where multiple offers on a property are common, understanding how to navigate counter offers is essential. Your agent will help you decide when to stand firm, when to compromise, and when to wait for another opportunity.

The offer process also involves a lot of paperwork and legal considerations. Your agent will ensure that all offer documents are correctly completed and that your rights and interests are protected throughout the transaction.