The Home Offer Process: How Long It Takes & What to Expect
The Offer
You have been searching for that perfect home, and it looks like you found it. Now is time to put in your offer. And wait…
How Long Does It Take for an Offer on a House to Be Accepted?
There's a super easy answer to that question, but there are also some nuances to go along with it.
First, what's the simple answer?
On or before the time limit when the offer expires.
Let me elaborate:
Whenever you submit an offer on a house, you put an expiration date and time for that offer. In other words, you give the homeowner a deadline by which they need to make a decision. If the homeowner is interested in your offer, they'll either sign the contract and send it back to you, or they may send you a counteroffer. Either way, they're going to respond to your offer on or before the expiration date and time on your offer.
Now for the Nuanced Answer: It Depends
In actuality, the better answer, like so many things in life, is more nuanced. And in reality, the dependencies most often come from the person selling the house and/or the agent that's working with them.
Let’s look at a few common scenarios.
1. Waiting Through the First Weekend
When I'm representing sellers, my goal is to get them the best price and terms possible. To achieve this, I encourage my clients to keep their home on the market through the first weekend. This strategy allows for maximum exposure and the potential to generate multiple offers. If we receive at least two offers, I recommend calling for "highest and best" offers by Monday morning. I ask the agents that are submitting offers on behalf of their buyers to make sure that the offer does not expire until 5:00 p.m. on Tuesday afternoon.
For agents like me, expect to hear back after the weekend on whether your offer has been accepted or the seller is proposing a counter... or in the example like mine, by the recommended expiration day and time.
2. Accepting Early Offers
Sometimes, sellers receive an exceptional offer right away and decide not to wait through the weekend. And the buyer making the offer puts a tight deadline on the offer to try and beat other offers to the punch. When this happens, you will likely hear back within a few hours to a day of submitting your offer.
3. Aggressive Offers with Short Deadlines
For homebuyers in a competitive market, your agent might advise submitting an aggressive offer with a short expiration deadline—such as just a few hours. This tactic can push a seller to make a quick decision, especially if the offer is significantly over the asking price. However, this strategy comes with risks. Some sellers may accept the offer to avoid missing out. Others may feel pressured and react negatively, which could hurt your chances.
When I am representing a seller and I receive an offer with a short deadline, I recommend to my clients that we ask the agent representing the potential buyer to extend the deadline.
If the person making the offer really wants the house, they’ll extend the deadline. There might be an offer come along that is so tempting that the home seller can’t bring themselves to say no. But I haven’t seen it yet.
What Happens After You Make an Offer on a House?
We’ve talked about how long it takes for an offer to be accepted. But what is happening behind the scenes after you submit an offer on a home?
Once your offer is submitted, here’s what typically happens:
- Verifying Buyers' Financials:
Good listing agent ask cash buyers to submit proof of funds and those who are getting a loan to provide a pre-approval letter as part of the offer process. When multiple offers are received and the top offers are buyers who are getting a loan, good agents will contact the lenders to discuss the veracity of the buyer. In other words, we want our clients to be well informed about the buyer’s ability to purchase the property without their funding falling through. - Submitting All Offers to the Home Seller:
The listing agent is required by law to submit all offers to the seller. If there are multiple offers, some agents submit the offers as they come in. Personally, if there are multiple offers, I like to wait until the first weekend ends and all offers have been submitted. Then I create a spreadsheet doing a side-by-side comparison of all the offers with a rough net proceeds from the sale and then present all that information to the seller. - Reviewing All Offer Terms:
The listing agent should review all of the offer terms, not just the sales price being offered. Other terms beyond price can impact the proceeds of the sale, and the ability of the sale to go through. These terms include the seller paying buyers closing costs, special stipulations that require the seller to come out of pocket for an expense such as a home warranty or termite letter, an extended due diligence period, a contingency to sell or rent another property, financing contingencies, appraisal contingencies, closing date, date of possession, and any number of other special stipulations added to the purchase and sale agreement. The agent’s goal is to make sure the seller understands the potential risks and benefits of all the offers so the seller can make an informed decision. - Seller’s Decision:
After reviewing the information, the seller will decide to accept an offer, make a counteroffer, or reject an offer based on their agent’s input and their personal priorities.
How Do You Increase Your Chances of Getting Your Offer Accepted?
Behind the question behind the questions, “HHHow long does it take?” and “What happens?” is the real questions, “What can I do to increase my chances of getting the house I want?”
Obviously, it’s not going to surprise you that I say, “Hire a skilled, real estate professional who knows the market, and who knows how to craft a great offer.”
So how do you know when talking to an agent if they are skilled? If they know the market? If they know how to craft a great offer?
Interview a prospective agent like you’d interview anyone you’re hiring for a job. If you’ve not ever had to hire an employee, think about the criteria, then create questions around those factors.
Criteria: Real Estate Professional
If you want to hire a “real estate professional,” you could ask if they’re a full-time real estate agent. Nothing against people who can’t quit their day job yet, but you might need to dig in a little more for the next few questions to make sure they had the data and the skills to serve you well.
Are they a member of their professional association, the National Association of RealtorsÒ? Commitment to a professional association show a deeper level of commitment to the profession and additional requirements of membership
How do they continue to educate themselves on real estate related matters and how to best serve their clients.
Criteria: Knows the Market
As you talk about where you want to live, can they provide you data and information on the market trends in that area?
Do they know how the market is performing different for single family homes versus condos and townhomes?
Can they pull up properties in the area you want to live, in the price point you want to be at, to show you what you can expect in your market place?
Criteria: Crafting a Great Offer
Ask them what they do when submitting an offer?
What do they do during the showing process to help you make decisions about the offer you make?
Do they check with the listing agent to see if the seller’s have other offers?
Do they talk to the listing agent before submitting the offer to find out what’s important to the home seller besides the sales price?
Do they show you data and photos of comparable properties and home sales and provide you guidance on what the seller is expecting or what they might be expecting?
Do they explain the potential risks and benefits of particular special stipulations, of the length of the due diligence period, the financial contingency, the appraisal contingency, asking for closing costs, suggesting escalation clauses, making backup offers, etc.?
Criteria: Communication
As you ask questions and consider hiring the agent, are you comfortable with the agent? Are they communicating in a way that you can understand? Are they honest with you? Do they talk about what happens if things aren’t going well?
Need Help Buying a Home?
Buying a home is one of the most important, high-cost decision you’ll make. Don’t go it alone. Make sure you have a trusted professional by your side to help you achieve your goal.
Call or text me, Kelly Vandever, at 770-597-1108 and allow me to make your move easier.
P.S. While I work in the greater Atlanta area, I can also help you find help in other states too.
