10 Questions to Ask Before Making an Offer on a House

Finding a home you want to buy is only the beginning of the offer decision.

Before choosing a price and signing a purchase agreement, take time to understand the home’s value, condition, ownership costs and the terms that could make your offer stronger — or expose you to unnecessary risk.

These 10 questions can help you evaluate the property and structure an offer that fits both the market and your finances.

Key Takeaways

1. Compare the asking price with recent sales instead of relying on the list price alone.
2. Evaluate the entire offer, including contingencies, earnest money, concessions and timing.
3. Know your maximum budget before competition pushes you toward a higher price or weaker protections.

1. How Does the Asking Price Compare With Recent Sales?

The list price is a starting point, not an independent determination of what the home is worth.

Before making an offer, look at recent comparable sales, or “comps.” The most useful comparisons generally involve homes that are similar in characteristics such as:

• Location
• Property type
• Size
• Age
• Condition
• Lot size
• Features

Your real estate agent can help identify recent sales and explain how the property differs from those homes.

That doesn’t produce one indisputable offer price. It gives you market evidence to consider when deciding what you’re willing to pay.

The seller’s original purchase price is usually much less important. A home bought 10 years ago for $250,000 could reasonably be worth substantially more or less today depending on market conditions, improvements and the property itself.

2. How Long Has the Home Been on the Market?

Days on market can provide useful context, but don’t assume a long listing automatically means the home is overpriced.

Ask:

• When was the home first listed?
• Has the asking price changed?
• Was the property previously under contract?
• Was it withdrawn and relisted?
• How quickly are comparable homes selling?

A recent price reduction could indicate that the seller is responding to the market.

A home that has been listed longer than comparable properties may also give a buyer a different negotiating position than a property that received several offers during its first weekend.

But there can be other explanations, including property condition, unusual features, seasonal demand or a small pool of potential buyers.

Checking the home’s sale history can also reveal prior sales, relisting patterns and other information that adds context before you decide what to offer.

3. What Do the Seller Disclosures and Property History Tell You?

Review the information available about the property before you commit to an offer.

Seller disclosure requirements vary by state, but available documents may identify known issues involving:

• Roof leaks
• Water intrusion
• Structural problems
• Electrical or plumbing systems
• Past damage
• Insurance claims
• Repairs or renovations
• Other property conditions

Disclosures aren’t a substitute for your own due diligence.

A seller may not know about every defect, and disclosure forms don’t replace a professional home inspection.

Public property records can provide another source of information about a home, including recorded ownership, transfers, assessments and other details that may be relevant to your research.

4. What Is the Home Likely to Cost You Each Month?

Your offer price is only one component of affordability.

Before increasing an offer to compete for a home, estimate the full monthly housing cost, which can include:

• Mortgage principal and interest
• Property taxes
• Homeowners insurance
• Mortgage insurance, if applicable
• HOA or condo fees

Also consider ongoing maintenance and utility costs even though they aren’t part of the mortgage payment.

A price that fits within a lender’s preapproval doesn’t necessarily mean the resulting monthly payment fits comfortably within your own budget.

You can use a home affordability calculator to compare how different prices, down payments and mortgage assumptions affect your budget.

5. What Is the Home’s Condition?

Don’t let attractive finishes distract from the underlying condition of the property.

Look for available information about major systems and components, including:

• Roof
• Foundation
• Heating and cooling
• Electrical system
• Plumbing
• Windows
• Sewer or septic system
• Well, if applicable

You won’t be able to determine everything during a showing.

A professional home inspection can provide a more detailed evaluation after your offer is accepted if your contract gives you that opportunity.

If the property is being sold as is, don’t assume that means an inspection is unnecessary. Understanding the home’s condition can be even more important when the seller does not intend to complete repairs.

6. Are Seller Concessions Part of the Negotiation?

Price isn’t the only financial term you can negotiate.

A seller may be willing to provide a concession toward eligible buyer expenses, depending on the offer, market and mortgage program.

For example, a seller credit could potentially help with eligible:

• Closing costs
• Prepaid expenses
• Discount points
• Other permitted transaction costs

Seller concessions aren’t guaranteed, and mortgage programs limit how they can be used.

They can still be valuable when cash needed at closing matters more to the buyer than a modest reduction in the purchase price.

Our guide to seller concessions explains how these credits work and why the limits differ among mortgage programs.

A cash-to-close calculator can also help you estimate how upfront costs fit into your purchase budget.

7. Which Contingencies Do You Want in the Offer?

Contingencies can provide contractual protections when certain conditions aren’t satisfied.

Depending on the transaction and local contracts, an offer might address:

• Financing
• Home inspection
• Appraisal
• Title
• Sale of another property
• Other transaction-specific conditions

In a competitive market, buyers sometimes consider reducing or waiving contingencies to make an offer more attractive.

Understand the tradeoff before doing so.

A contingency isn’t just paperwork. Changing or removing one can shift financial or contractual risk from the seller to you.

The strongest offer isn’t necessarily the one with the fewest protections. It is one whose terms you’re prepared and financially able to honor.

8. How Much Earnest Money Are You Comfortable Putting Down?

Earnest money is a deposit associated with the purchase agreement that demonstrates the buyer’s commitment to the transaction.

There isn’t one nationwide amount that every buyer has to provide.

The amount can depend on local practice, purchase price, competition and the terms negotiated between the parties.

Before choosing an amount, understand:

• When the deposit is due
• Who will hold it
• How it will be applied at closing
• When it may be refundable
• When it could be at risk

Don’t increase earnest money simply because you think a larger number always makes an offer better.

The purchase contract determines what happens to the deposit if the transaction doesn’t close.

9. What Closing Timeline Does the Seller Prefer?

Timing can matter alongside price.

A seller who has already moved may prefer an earlier closing. Someone waiting for another home might prefer more time or a negotiated period of possession after closing.

You don’t need to know — or speculate about — personal reasons such as the seller’s job, family circumstances or finances.

The useful question is simply: What transaction timing does the seller prefer?

If that schedule also works for you and your lender, matching it can strengthen an offer without increasing your price.

Before promising an unusually fast closing, confirm that your mortgage lender can realistically meet the proposed timeline.

10. Are There Competing Offers?

Competition can affect how you structure your offer, but don’t assume you’re entitled to know every term another buyer submitted.

Ask whether the seller has received other offers and how the seller intends to handle a multiple-offer situation.

Possible approaches can include:

• Accepting one offer
• Countering one buyer
• Asking some or all buyers for their highest and best terms
• Considering an escalation clause where permitted

The highest purchase price doesn’t automatically produce the most attractive overall offer.

Sellers may also consider financing, contingencies, earnest money and closing timing when evaluating competing proposals.

According to current National Association of REALTORS® guidance, with the seller’s consent, a REALTOR® who is asked about competing offers must disclose whether other offers exist. That does not mean another buyer’s confidential terms necessarily have to be disclosed.

What Else Should You Research Before Making an Offer?

The purchase agreement focuses on the property, but your due diligence should extend beyond the house itself.

Consider researching objective information about:

• Property taxes
• HOA rules and assessments
• Flood risk
• Insurance availability and estimated premiums
• Zoning
• Publicly available development proposals
• Road or infrastructure projects
• Utility providers
• Property records

If future development matters to you, check official municipal or county planning sources rather than relying solely on what a seller or agent remembers.

What Should You Know About the Seller’s Motivation?

You may hear that knowing why a seller is moving gives you negotiating leverage.

Sometimes the seller or listing agent voluntarily communicates priorities such as a preferred closing date or desire for a simple transaction.

Those transaction-related priorities can be useful.

But don’t base your strategy on rumors or assumptions about the seller’s personal circumstances.

Focus on information relevant to the deal: price, timing, concessions, contingencies and other contract terms the seller has indicated matter.

How Much Should You Offer?

There isn’t a universal formula such as offering a certain percentage below asking price.

A reasonable offer can depend on:

• Recent comparable sales
• Property condition
• Time on market
• Price changes
• Current competition
• Your financing
• Your maximum comfortable price

In some situations, an offer below list price may be reasonable. In others, competition may push offers above it.

Decide on your limit before negotiations become emotional.

Our guide to making an offer on a house walks through the full process from deciding on a price through submitting and negotiating the offer.

Don’t Evaluate the Offer on Price Alone

An offer is a package of terms.

A seller evaluating multiple offers may consider many of these factors rather than simply choosing the highest number. Current NAR guidance similarly notes that financial terms, contingencies, closing timeline and earnest money can make one offer more or less attractive than another.

Bottom Line

Before making an offer, understand more than the asking price.

Review comparable sales, property condition, monthly costs, seller disclosures, contingencies, earnest money and closing timing. Then find out whether you’re entering a multiple-offer situation.

The goal isn’t to predict the smallest amount the seller might accept.

It’s to submit an offer whose price and terms make sense for the property, the market and your own financial limits.

FAQ

What should I ask before making an offer on a house?

Ask about comparable sales, time on market, property condition, disclosures, estimated ownership costs, contingencies, earnest money, seller concessions, preferred closing timing and competing offers.

Should I ask what the seller originally paid for the house?

You can review the property’s sale history where that information is publicly available, but the seller’s old purchase price doesn’t determine its current market value. Recent comparable sales and current property condition are generally more relevant.

Should I offer less if a home has been on the market a long time?

Not automatically. Longer market time may affect negotiations, but it can result from pricing, condition, unusual property characteristics or broader market conditions. Compare the home with recent local sales before choosing an offer price.

Can I ask whether there are other offers?

Yes. Whether and how information about competing offers is disclosed depends on seller instructions, applicable law and professional obligations. Don’t assume you’ll receive another buyer’s price or contract terms.

Does the highest offer always win?

No. Sellers can consider price along with financing, contingencies, earnest money, closing timing and other terms when choosing among offers.

Should I waive contingencies to make my offer stronger?

Only after understanding the risks. Waiving inspection, appraisal, financing or other protections can increase your exposure if a problem develops later in the transaction.

Can I ask the seller to pay closing costs?

Potentially. Seller concessions can cover certain eligible buyer costs when agreed to by the seller and permitted by the buyer’s mortgage program.

How do I know how much to offer on a house?

Consider recent comparable sales, condition, market competition, time on market and your own budget. There is no fixed percentage above or below list price that works for every property.