Ready to put a price on a Texas home? The paperwork can feel like a maze, but I break it down into five clear steps. Follow each step and you’ll hand the seller a solid, compliant offer that protects your interests.
Step 1: Confirm Your Budget, Approval, and Offer Strategy
First, know exactly what you can afford. I always start with a lender pre‑approval, not just a pre‑qualification. A pre‑approval letter shows the seller you have financing lined up and it’s the document sellers expect in Texas.
Ask your lender for a written pre‑approval that states the loan amount, interest rate, and any conditions. Pair that with a proof‑of‑funds statement for the earnest money and down‑payment. Without both, the offer will likely be tossed before the seller even reads your price.
In Texas, the buyer’s agent fills out the state‑standard contract (the TREC promulgated form). This keeps the language uniform and avoids costly drafting errors.
When you’re ready, you can review the Mortgage Pre‑Approval Austin | Get Ready to Buy a Home page for a checklist of the documents you’ll need.
And remember, Texas law requires a signed buyer‑representation agreement before you see a home. Discuss that requirement with your Austin REALTOR before touring properties so you understand the agreement, its services, and its terms.
Step 2: Choose the Price and Terms of Your Texas Home Offer
Pricing a Texas home isn’t just about the list price. Look at recent comps, the home’s condition, and any seller concessions that might be on the table. When homes draw multiple offers, you’ll need a price that’s competitive yet leaves room for negotiation.
Offer a clean price first, then layer in terms that help you stand out: a higher earnest‑money deposit, a quick escrow timeline, or a waiver of certain contingencies (only if you’re comfortable with the risk).
If you’re a veteran, don’t forget the VA escape clause. It lets you back out if the appraisal comes in low. Missing this clause can lock you into an over‑priced deal. The VA explains the clause in detail here.
Once you have a number, write it in the appropriate residential purchase contract. The form has a space for “Offer Price” and another for “Earnest Money.” Fill both accurately.
Need a concrete example? I once helped a client offer $5,000 under asking on a 4‑bedroom in Georgetown. The seller appreciated the clean offer and accepted without a counter.
For a quick reference on how I structure offers, see my Making an Offer guide.
Step 3: Put the Offer in the Correct Texas Contract and Addenda
Use the appropriate contract form for the transaction and make sure all parties are working from the same version. Consistent language helps avoid unintended loopholes.
Attach the appropriate addenda for financing, inspections, and, if applicable, military-related terms. Each addendum spells out deadlines and conditions that protect you.
The contract includes sections for price, financing, property condition, and closing date. Filling these out correctly is the backbone of a solid offer.
Don’t forget the seller‑disclosure forms. They’re required by law and give you insight into known defects.
Step 4: Set Inspection, Financing, Appraisal, and Closing Protections
Now you add the safety nets that let you walk away if something goes wrong. The most common protections are:
- Home‑inspection contingency (usually 7‑10 days)
- Financing contingency (often 21 days)
- Appraisal contingency (especially important for VA loans)
- Closing‑cost escrow limits
These clauses give you a clear deadline to satisfy each condition. If a deadline passes without a satisfactory result, you can terminate the contract without penalty.
For example, a buyer I worked with added a 10‑day inspection window. The inspector found a faulty HVAC system, and the seller agreed to repair before closing, a win for both sides.
Read more about closing costs and how they affect your offer on the What Are Closing Costs? page.
Remember the appraisal gap coverage tip I wrote about here. It explains how to protect yourself if the appraisal falls short of your offer price.
Step 5: Submit, Review the Seller’s Response, and Negotiate Carefully
When the offer lands on the seller’s desk, the clock starts ticking. Sellers can accept, reject, or counter. A counter‑offer may change price, contingencies, or deadlines.
If you receive a counter, review each change. A higher price might be offset by a longer escrow period or a lower earnest‑money deposit. Use your agent to propose a new counter that balances the scales.
Negotiation isn’t just about dollars. You can ask for a home‑warranty, a repair credit, or a seller‑paid closing‑cost concession. In a multiple‑offer situation, including a concession may help make an offer more competitive.
Stay within the deadlines listed in your contingencies. Missing a date can turn a negotiable offer into a binding contract.
When both sides finally sign, the contract becomes a legally binding purchase agreement. At that point, you move into escrow and prepare for closing.
FAQ: Writing an Offer on a House in Texas
How much earnest money should I put down?
The standard amount in Texas is 1% of the purchase price, but many buyers increase it to 2 to 3% to look more serious.
Do I need a real‑estate attorney to write an offer?
No. Texas law lets a licensed REALTOR fill out the TREC contract, so an attorney isn’t required for the offer itself.
Can I waive the inspection contingency?
You can, but only if you’re comfortable buying “as‑is.” Waiving it removes a major safety net and is rarely advised for first‑time buyers.
What is a VA escape clause?
It lets a veteran back out if the appraisal is lower than the contract price, protecting them from over‑paying.
How long do I have to respond to a seller’s counter‑offer?
Most contracts set a 24‑ to 48‑hour window. Respond quickly to keep the deal moving.
What happens if my loan is denied after I’ve signed?
If you included a financing contingency, you can terminate the contract without penalty. Without it, you risk losing your earnest money.
For a deeper dive on financing contingencies, check the Mortgage Pre‑Approval page again.
And if you’re curious about handling multiple offers, my How to Handle Multiple Offers in Austin guide walks you through that scenario.
Conclusion
Write a clear, compliant offer using the five steps above, and you’ll protect yourself from costly surprises. Ready to draft your offer? Reach out to me, Robbie English, REALTOR, Broker, and we’ll get your paperwork in front of the seller today.
