✅ Understanding The Home Offer Process
Making an offer on a home is exciting—but also a little intimidating. There are a lot of moving parts, strange lingo, and important decisions to make fast.
So let's talk about the three essential contracts that shape your entire real estate journey, and the most common terms you might include with your offer to purchase a home.
Real estate can feel like a maze of paperwork but don’t worry; only three core contracts run the show. One for the seller, one for the buyer, and one that brings both parties together. The three videos below are less than 35 seconds and explain what to expect. ⤵️
Your offer (or what we call the "Proposal to Purchase") is the first step in getting those keys. It’s not legally binding (yet), but if the seller agrees, those terms get rolled into a formal Purchase Agreement Contract.
This contract officially makes your agent your advocate—protecting your interests, guiding you through the process, and helping you avoid risks along the way, and it also outlines how your agent is paid.
Listing Agreement
You sign a Buyer Agency Agreement so your agent can represent you, and this is what a seller signs with their agent. Don't expect to speak with the seller directly: your agents will be your liaisons!
🧠 Part 2: The Terms
What starts as fun Zillow scrolling can quickly turn into “wait, what the heck is an appraisal gap clause?”. Which is why it’s so important to understand what to expect when it’s time to write your first offer. In your Proposal to Purchase, there are several terms you can include that may help sway the seller in your favor. Let’s break down the key components that make up a strong, competitive offer—so you’re ready when the right home comes along. Tap on the titles below to expand each section ⤵️
The monetary amount you're offering to pay for the home. This dollar amount might be higher, lower, or equal to the list price (i.e. what you see on Zillow)—depending on market conditions, competition, and how aggressive you want to be. Your agent will help you decide on a price that’s both strategic and realistic based on recent sales and the property’s value.
This is a good-faith deposit that shows you’re serious about buying the home. Buyers will typically deposit 1-3% of the purchase price (but don't worry: this gets applied to your closing costs or down payment later on). The higher your EMD, the stronger your offer looks—because it shows you’ve got skin in the game. If you back out of the deal for a reason not covered by a contingency, you could lose that deposit. So in a competitive market, putting down a larger EMD can give your offer extra weight and credibility.
This is the portion of the purchase price you’re paying out of pocket—not through a mortgage—and it can significantly impact how your offer is perceived; a higher down payment generally looks more attractive to sellers. Why? Because it shows you have more cash on hand and are relying less on financing. And in real estate, cash is king—because mortgage-backed offers come with more risk. (If a lender denies your loan last minute, the deal can fall apart, leaving the seller back at square one.)
This is the date when the transaction is complete—you sign the final paperwork, funds are transferred, and you get the keys. A good real estate agent will reach out to the listing agent before you write your offer to find out what timeline the seller is looking for. Maybe they need a quick close because they’ve already bought their next home—or maybe they need extra time to move out, in which you could offer a rent back period (more on than below). If you can be flexible, your offer becomes that much more appealing.
This means you're agreeing to cover some—or all—of the difference if the home appraises for less than your offer. When you’re using a mortgage, your lender requires an appraisal to confirm the home is worth what you’re paying. If the appraisal comes in low, the lender won’t cover the full purchase price—and that gap needs to be filled (otherwise the purchase could fall apart).
"Waiving inspection" is music to a seller's ears... but it comes with serious risks for you. This is especially true in South Jersey, where many homes are 100+ years old! Older homes can come with surprises behind the walls or under the floorboards, and skipping the inspection could mean walking straight into expensive repairs. That said, there are ways to make your offer stronger without giving up inspections altogether. One strategy is to include a "repair credit cap" (stating that you’ll only ask the seller to address issues that exceed a certain amount—for example $10,000—in repairs). This shows the seller you’re serious and aren’t planning to nickel-and-dime them over every minor issue, while still protecting yourself from major, deal-breaking problems.
This automatically increases your offer if a higher one comes in (like bidding on eBay!). While it helps you stay competitive, some sellers don’t love it. They may see it as playing games and would prefer a strong, straightforward offer instead. If you’re serious about the home, leading with your best number upfront usually makes a stronger impression.
Rent Back / Post-Settlement Occupancy
A rent back allows the seller to stay in the home for a set period of time after closing while paying you rent! (A period of 2-6 weeks is most common.) Being flexible with a rent back period can make your offer stand out by giving the seller breathing room—so they don’t have to rush out or find a temporary rental between homes; it removes a major moving-day headache and can sweeten the deal, especially if they’re juggling back-to-back closings.
If you have the funds to play with and you're desperate for that home, you can really sweeten the offer by covering some of the seller's costs. In most transactions in South Jersey, the seller pays both agents’ commissions (yes, even your buyer agent's commission!) and many of the closing costs. But in a competitive market, a buyer can stand out by taking on some of that burden. For example:
✅ You could offer to pay your own agent’s commission (ask your agent what they charge, but it'll probably be around 3% of the purchase price of the home).
✅ You could cover some of the seller’s title fees or transfer taxes.
These gestures show the seller you’re committed and financially solid—and that you’re trying to make their life easier. Especially in multiple-offer scenarios, offering to reduce the seller’s out-of-pocket expenses can tip the scales in your favor. Your agent can help you run the numbers to make sure this kind of move fits your budget—but if you’ve got room to maneuver, it can be a serious power play.
Questions? Let’s Talk.
We know this is a lot—but you don’t have to memorize it all. Your JFKLiving agent is here to guide you every step of the way. 📩 Want to talk more about putting in an offer on a home? Fill out the form and we'll be in touch.
