How to Make an Offer on a Home in Texas

Key takeaways

Most Texas resale offers are written on a contract form promulgated by the Texas Real Estate Commission (TREC), with addenda for financing, HOAs, and other situations.
Sellers compare price and terms together: financing, earnest money, option period, closing date, and requested contributions.
Agent compensation is not set by law and is fully negotiable. An offer can ask the seller to contribute toward your agent’s compensation, but the seller doesn’t have to agree.
Nothing is binding until both parties sign and the agreement is communicated. Counteroffers replace the earlier offer.
Base your price on comparable sales, not just the list price.

Before you write an offer

The best offers start before you find the house. Three things put you in a position to move quickly and confidently:

A preapproval, or proof of funds if you’re paying cash. Sellers want to know you can close. See our guide to getting pre-approved for a mortgage.
A written agreement with your agent. In Texas, an agent must have a written agreement with you before showing you a home. It explains the services you’ll receive and how your agent is paid. Learn more in choosing a real estate agent.
A clear budget for cash at closing. Your down payment, closing costs, earnest money, and option fee all come due at different times.

How to choose your offer price

The list price is the seller’s starting point. Your offer should come from evidence. Your agent can pull a comparative market analysis showing:

Recent comparable sales: similar homes nearby that actually sold, adjusted for size, age, condition, and features.
Active and pending listings: your real competition, and what other buyers are agreeing to.
Days on market and price changes: a home that’s been listed for a while, or has had price reductions, may leave more room to negotiate.
Condition: updates, needed repairs, and anything you saw during the showing.

If you’re financing, keep the appraisal in mind. If you offer well above what comparable sales support, the appraisal may come in lower than your price. You’d then need to renegotiate, bring extra cash, or rely on whatever termination rights your contract gives you. Our guide to option periods, inspections, and appraisals explains what happens next.

What goes into a Texas home offer

The standard TREC resale contract covers far more than the price. These are the terms that most affect how strong, and how safe, your offer is:

Main terms in a Texas resale offer
Term	What it means	Why it matters
Sales price	The cash portion plus the amount you’re financing	The number sellers notice first
Financing	Usually documented with TREC’s Third Party Financing Addendum	Shows the seller your loan type and protects you if your loan isn’t approved
Earnest money	A good-faith deposit held by the escrow agent, usually the title company	Credited to you at closing; may be at risk if you default
Option period and fee	Days you can terminate for any reason, in exchange for a fee	Your inspection window; shorter periods can look stronger
Title policy	Whether the seller or buyer pays for the owner’s title policy	A negotiable cost; it’s a checkbox in the contract
Survey	Whether an existing survey can be used or a new one is needed	Affects cost and timing
Seller contributions	An amount the seller pays toward your allowable closing costs	Lowers your cash to close, but reduces the seller’s net
Closing date and possession	When you close and when you get the keys	Flexibility here can matter as much as price to a seller

Common addenda

Depending on the property, your offer may include addenda, such as those for property in an HOA, homes built before 1978 (lead-based paint disclosure), or making your purchase contingent on selling your current home. Your agent will tell you which ones apply.

Agents can fill in TREC forms, but they can’t practice law or write new contract terms for you. If you need custom language, ask a Texas real estate attorney.

How buyer’s agent compensation works in an offer

The current TREC resale contract states plainly that brokerage compensation is not set by law and is fully negotiable. Each party pays their own broker under their own written agreement.

Your offer can ask the seller to contribute a set amount or percentage toward what you owe your agent, and the contract has a separate place for that request. It’s part of the negotiation, so the seller can accept it, reduce it, or decline it. Representation is never automatically free. Your written agreement with your agent explains what you’ll owe if the seller doesn’t contribute.

Tip: A seller contribution toward your agent’s compensation and a seller contribution toward your closing costs are separate items in the contract. Your lender may limit how much a seller can contribute overall, so check with your loan officer before you write the offer.

Counteroffers and negotiation

Once your agent submits your offer, the seller can accept it, reject it, or send a counteroffer. A counteroffer replaces your original offer, so you can then accept, counter again, or walk away. Negotiation often goes back and forth on more than price, such as the closing date, option period, contributions, or repairs.

Set a response deadline. A deadline keeps the process moving and limits how long the seller can shop your offer.
Know your walk-away point before you start, including how much cash you can really bring.
Keep everything in writing. Verbal agreements on real estate aren’t enforceable the way a signed contract is.

The contract becomes binding when both parties have signed and acceptance has been communicated. The broker then fills in the Effective Date, which starts the clock for your deadlines.

How to compete when other buyers want the same home

When there are multiple offers, sellers often choose the one most likely to close smoothly, not just the highest. Ways to strengthen your offer without taking on unnecessary risk:

A fully documented preapproval from a responsive lender
A larger earnest money deposit, if your budget allows
A shorter option period, with inspections scheduled in advance
A larger option fee, which goes to the seller if you terminate
Flexible closing or possession, such as a short leaseback
Fewer requested contributions

Be careful about giving up protections you may need. Waiving inspections, or committing to cover any appraisal gap, can cost you far more than losing one house. Talk through the trade-offs with your agent before you decide.

Hypothetical example: Two buyers offer on the same home. Buyer A offers $5,000 more but asks for $8,000 in seller contributions and a 45-day close. Buyer B offers less, asks for no contributions, and can close in 25 days. Many sellers would choose Buyer B. Strong terms can beat a higher price.

What happens after your offer is accepted

Deliver earnest money and the option feeUnder the standard resale contract, both are due to the escrow agent within 3 days after the Effective Date.
Inspect during the option periodBook inspectors right away. See option period, inspections, and appraisals.
Finish your loan applicationSend your lender the contract and any documents they request promptly.
Review title and HOA documentsLook over the title commitment, survey, and any HOA documents within the contract’s timeframes.
Prepare to closeContinue with preparing for closing and getting your keys.

Watch: Making an offer on a property

Frequently asked questions

How much earnest money should I offer in Texas?

There’s no required amount. It’s negotiated and often scales with the price and how competitive the market is. Your agent can tell you what’s typical for similar homes in the area. Remember that earnest money can be at risk if you default, so understand your contract’s terms.

Should I offer below the asking price?

It depends on the evidence. If comparable sales, days on market, or condition support a lower price, an offer below asking can be reasonable. If the home is priced well and attracting attention, a low offer may simply be rejected. Let comparable sales guide you.

Can I back out after my offer is accepted?

Only under the rights your contract gives you, such as terminating within the option period or under the financing addendum. Backing out without a contractual right may put your earnest money at risk.

How long does a seller have to respond?

As long as your offer allows. Your agent can set a reasonable response deadline. Until the offer is accepted and acceptance is communicated, you can generally withdraw it. Ask your agent how to do that in writing.

Can I make an offer that depends on selling my current home?

Yes. TREC has an addendum for the sale of other property by the buyer. Sellers often see this as less attractive, so it may be weaker in a competitive market. If you also need to sell, read our home selling guide to plan both moves.

Will the seller pay my closing costs?

Only if you negotiate it. The contract lets the seller agree to pay up to a set amount toward your allowable closing costs, and your loan program may limit how much is allowed.

Sources and further reading

This article is general information about common Texas residential transactions, not legal advice. Contract forms change over time, and your rights depend on the agreement you sign. Consult a Texas real estate attorney for legal questions.