Making an Offer: How to Confidently Take the Next Step
You’ve found a home you love—now it’s time to make an offer. This part of the home purchase process can feel a little nerve-wracking, but with the right guidance and a clear understanding of how it all works, it becomes one of the most exciting steps toward owning your first home.
How the Offer Price Is Determined
Your home offer price should be based on more than just what the seller is asking. As your Realtor, I’ll help you review:
- Comparable sales (comps): What similar homes have sold for recently in the neighborhood
- Market conditions: Is it a buyer’s or seller’s market?
- Days on market: A home that’s been sitting might allow for a lower offer
- Home condition: Does it need updates or repairs?
- Seller motivation: Are they relocating or already under contract elsewhere?
In the Gainesville and Ocala markets, we’ll balance fair pricing with competitive strategy, especially if there are multiple offers in play.
What is Earnest Money?
Earnest money is a deposit you put down to show the seller you’re serious about buying the home. Think of it as a “good faith” gesture.
- It’s usually 1%–3% of the purchase price, but the amount can vary.
- This money is held in escrow (not paid to the seller directly).
- It gets credited toward your down payment or closing costs at the end of the transaction.
- If you back out for a reason covered in your contract (like financing falling through or a bad inspection), you usually get that money back.
But if you walk away for a reason not covered in your contingencies, you could lose it—so it’s important to understand your protections.
Common Contingencies to Include in Your Offer
Contingencies are conditions that must be met for the home sale to move forward. They protect you as the buyer. Some of the most common are:
- Financing contingency: If your loan falls through, this allows you to cancel the contract without penalty.
- Inspection contingency: Gives you the right to have the home professionally inspected and negotiate repairs or walk away if serious issues are found.
- Appraisal contingency: If the home doesn’t appraise for the offer amount, this allows you to renegotiate the price or cancel the deal.
- Home sale contingency (optional): Used if you need to sell your current home before buying.
Each of these helps keep you from getting locked into a contract that’s no longer in your best interest.
How Negotiations Work
Once your home offer is submitted, the seller can do one of three things:
- Accept it as-is
- Reject it outright
- Counter-offer with new terms (like a higher price, different closing date, or removing a contingency)
Negotiations are a normal part of the process—and this is where having a skilled, responsive agent makes a big difference. I’ll help you respond strategically and stay within your comfort zone, whether we’re negotiating price, repairs, or timelines.
In many cases, it takes a couple of back-and-forths to find common ground. And that’s okay—our goal is to get you the best terms possible while keeping the deal moving forward.
Home Inspection & Appraisal: What to Expect
What’s Included in a Home Inspection?
Once your offer is accepted—congrats!—the next big steps are the home inspection and appraisal. These two steps are crucial in making sure the home is in good shape and worth what you’ve agreed to pay. They’re also moments where surprises can pop up—but with the right knowledge and guidance, you’ll know exactly how to handle them.
A home inspection is a top-to-bottom visual review of the property’s major systems, structure, and condition. It’s conducted by a licensed professional (that you, the buyer, hire) and typically costs between $350 and $600 in North Florida, depending on the size and age of the home.
Your inspector will check:
- Roof, gutters, flashing
- HVAC (heating and cooling systems)
- Plumbing (water pressure, leaks, drainage)
- Electrical (outlets, breaker box, exposed wires)
- Foundation and structure
- Windows and doors
- Attic and insulation
- Appliances that stay with the home
- General safety issues
Afterward, you’ll receive a written report, often with photos, outlining any issues found. Don’t panic if there’s a long list—most reports include small, normal wear-and-tear items. The goal is to identify any major issues that could affect your safety, budget, or ability to get insurance.
What About WDO, Mold, or Roof Concerns?
In Florida—especially in Gainesville, Ocala, Alachua, and the surrounding areas—you’ll also want to order a WDO inspection (Wood-Destroying Organism). This checks for:
- Termites
- Wood rot
- Powderpost beetles
- Fungal growth (like dry rot or moisture-related damage)
Florida homes are also prone to mold due to our humid climate, so if there’s any evidence of water damage or musty smells, mold testing may be recommended.
The roof is another major item. Insurance companies in Florida are strict about roof age and condition, so if your roof is older than 15–20 years (even if it’s not leaking), you may run into issues with financing or getting homeowners insurance. Your inspector will note if the roof shows signs of wear, missing shingles, or sagging.
What Happens if the Appraisal Comes in Low?
An appraisal is ordered by your lender to confirm the home’s market value. It’s not the same as the inspection—it’s a financial safeguard. The appraiser looks at:
- Comparable recent sales (comps)
- Home condition and updates
- Location and lot value
If the appraisal comes in at or above your purchase price, you’re good to go.
But if it comes in below the agreed price, you have options:
- Renegotiate with the seller to lower the price to match the appraised value.
- Make up the difference in cash (not always recommended unless you're comfortable financially).
- Dispute the appraisal with new comps (rarely successful but possible).
- Walk away if you included an appraisal contingency in your offer (which I always recommend).
This is why contingencies are so important—they give you a safety net when things don’t go as expected.
What’s Negotiable After the Inspection?
Once the inspection report is in, you can request repairs or credits. Here’s what buyers often negotiate:
- Fixing safety issues (like exposed wiring or bad outlets)
- Repairing or replacing a damaged roof, HVAC, or water heater
- Remediation of mold or termite damage
- Plumbing or drainage fixes
- Repairing windows or doors that don’t function
Sellers might agree to:
- Make repairs before closing
- Offer you a credit at closing (which reduces your out-of-pocket costs)
- Reduce the sales price
The seller is not required to fix everything—but you’re also not required to move forward if the issues are too big and can’t be resolved. This part of the home purchase process is where I help you balance what’s fair, what’s realistic, and what’s in your best interest.
Closing the Deal: The Final Stretch to Homeownership
You’ve made it through inspections, appraisals, and negotiations—and now it’s time for the final step: closing! This is where the ownership officially transfers to you, and those keys become yours. Closing can feel a little overwhelming, especially with all the paperwork and moving parts, but with the right preparation, it can also be a smooth and exciting finish line.
What Happens at Closing?
The closing (also known as settlement) is when all the final documents are signed, your funds are transferred, and you become the legal owner of the home. Here’s what to expect:
- Final Walkthrough: Usually scheduled 24 hours before closing. You’ll walk through the home to make sure it’s in the agreed-upon condition—clean, empty, and with all negotiated repairs completed.
- Signing Day: You’ll head to the title company or attorney’s office (or e-close online in some cases) and sign a stack of legal documents. These include the mortgage, promissory note, deed, and disclosure statements.
- Disbursement: Once everything is signed and verified, funds are released. Your lender wires the loan amount to the title company, and your down payment and closing costs are paid. Then, the title is recorded in your name.
You Get the Keys! Congrats—you’re officially a homeowner!
How to Read a Closing Disclosure (CD)
The Closing Disclosure is a 5-page document your lender must provide at least 3 business days before closing. It outlines your final loan terms and costs.
Key things to check:
- Loan amount & interest rate: Confirm these match what you were promised.
- Monthly payment: Including taxes, insurance, and mortgage insurance if applicable.
- Cash to close: The total amount you need to bring on closing day (certified check or wire transfer).
- Breakdown of closing costs: Lender fees, title charges, prepaid taxes, and insurance.
If anything looks off—don’t worry. I’ll review it with you line-by-line and answer any questions before you sign.
Estimated Closing Costs in Gainesville/Ocala
In Florida, closing costs typically range from 2% to 5% of the purchase price, depending on the loan type and property. Typical fees may include:
- Lender origination fee
- Title insurance
- Survey and title search
- Prepaid taxes & insurance
- Appraisal (already paid)
- Recording fees
- Transfer taxes (documentary stamp)
And remember: we may be able to negotiate seller-paid closing costs to lower your out-of-pocket total.