Course Title: The Power of Ownership™: Easy Steps to Smart Homebuying
STEP 9: Making an Offer
- COURSE OVERVIEW
Step 9 of The Power of Ownership™ introduces one of the most pivotal moments in the homebuying journey: making an offer. This moment is where strategy, preparation, and emotional balance must meet. In a competitive market, writing the right offer can mean the difference between landing your dream home—or watching someone else move in.
This module teaches participants how to build strong, fair, and competitive offers. It guides them through reading seller disclosures, writing contingencies, deciding how much to offer, understanding earnest money, and communicating with their agent throughout the negotiation process. It also prepares buyers for rejection, counteroffers, or bidding wars.
Above all, this step is about wise stewardship—offering what’s right, not just what’s rushed. A faith-led, data-driven offer reflects both confidence and discernment. Buyers will walk away from this session with the courage to submit their offer and the clarity to know when to walk away.
- LEARNING OBJECTIVES
By the end of this lesson, participants will:
- Understand how to read a seller disclosure form and property history
- Learn the parts of a standard purchase offer and what terms are negotiable
- Know how to determine a fair offer price with market comps
- Define and use contingencies (inspection, financing, appraisal)
- Understand earnest money: what it is, how it works, and when it’s refunded
- Know what happens during negotiations and how counteroffers work
- Gain emotional clarity to balance wisdom with desire
III. SCRIPTURAL FOUNDATION
Ecclesiastes 3:1, 6 (NIV) – “There is a time for everything… a time to keep and a time to throw away, a time to search and a time to give up.”
Making an offer is a time to act—but it’s also a time to discern. Not every house is meant to be yours. When you approach offers with peace and patience, you will have clarity when to push forward and when to pause.
- INSPIRATIONAL QUOTE
“Your offer is your voice. Make sure it speaks with wisdom, not worry.” — Coach Greb
- UNDERSTANDING THE PURCHASE OFFER
A real estate purchase offer is a legal document outlining the buyer’s intention to purchase the property under certain terms and conditions. Once signed by both parties, it becomes a legally binding contract.
Key Elements of an Offer Include:
- Purchase price
- Closing date
- Amount of earnest money
- Down payment amount
- Contingencies (inspection, financing, appraisal, etc.)
- Included items (appliances, furniture, fixtures)
- Expiration date for offer
Pro Tip: Every detail matters. What you include—or exclude—could cost or save you thousands.
- REVIEWING THE SELLER DISCLOSURE
Before you make an offer, your agent will request the seller’s disclosure. This form provides legally required information about the property’s condition.
Common Disclosure Items:
- Roof age and condition
- HVAC system condition
- Past water damage or mold
- Property boundaries
- Structural repairs or permits
- Pest or termite issues
Buyers should:
- Read thoroughly before making an offer
- Ask questions about anything unclear or alarming
- Use disclosures to inform inspections and negotiation
VII. HOW TO DECIDE ON YOUR OFFER PRICE
Factors That Affect Price Strategy:
- Comparable recent sales (comps)
- Days on market
- Buyer competition and market trends
- Seller motivation
- Property condition and updates
- Your own budget and pre-approval amount
In Hot Markets:
- Consider offering close to or above list price
- Waive small requests but never skip inspection unless fully informed
In Cold Markets:
- Offer below asking with strong rationale (comps, repair needs)
- Ask for seller-paid closing costs
Remember: The asking price is just that—a request. You offer based on facts, not feelings.
VIII. EARNEST MONEY: YOUR SKIN IN THE GAME
Earnest money is a deposit showing you’re serious about purchasing. It is typically 1–3% of the purchase price and is applied toward your down payment at closing.
What You Need to Know:
- Held in escrow until closing
- Refunded if contingencies are not met (e.g., failed inspection)
- Forfeited if buyer backs out for reasons not covered
Best Practices:
- Submit with offer to show strength
- Ensure it’s protected by written contingencies
- CONTINGENCIES: YOUR SAFETY NET
Contingencies are conditions that must be met for the purchase to go through. They protect the buyer’s rights and finances.
Common Contingencies:
- Home Inspection Contingency: Buyer can back out if serious issues are found
- Financing Contingency: Buyer is released if they can’t secure financing
- Appraisal Contingency: Buyer can renegotiate or cancel if home appraises lower
- Sale of Buyer’s Home: Only proceed if current home sells (in some cases)
Contingencies must be time-bound and clearly written.
- SUBMITTING THE OFFER & THE WAITING GAME
After reviewing the home, the seller’s disclosure, and your price strategy, you’ll finalize the offer with your agent. Once submitted:
- Seller can accept, reject, or counter your offer
- If countered, you can accept the new terms, reject, or counter again
- Counteroffers continue until one party agrees or walks away
Your realtor will be your buffer and negotiator during this process. Stay calm, available, and responsive.
Timeline: Offers typically expire within 24–72 hours. Be prepared for quick decisions.
- CASE STUDY: The Browns Hold the Line
The Browns found a home listed at $345,000. Their agent’s comps showed the value was closer to $325,000. They offered $328,000 with a $7,000 earnest deposit and included inspection and financing contingencies. The seller countered at $340,000, requesting the earnest money be non-refundable.
After praying and reflecting, the Browns decided not to waive their protections. They held firm. Two days later, the seller came back accepting their original offer, citing a slow market.
Lesson: Respect the process. Don’t let pressure push you into a poor deal. Faith and facts go farther than fear.
XII. DO’S AND DON’TS
✅ DO:
- Base your offer on comps and condition, not emotion
- Include clear contingencies to protect yourself
- Respond quickly during counteroffer periods
- Consult your agent on every revision
❌ DON’T:
- Waive inspection unless you can afford major repairs
- Let fear or competition push you over budget
- Submit verbal offers—always get it in writing
- Overlook details in seller disclosures
XIII. PRACTICE EXERCISES
- Sample Offer Review
- Review a mock purchase contract
- Identify each section and its purpose
- Highlight where negotiation is possible
- Offer Price Strategy Worksheet
| Item | Info | Notes |
| Listing Price | $________ | |
| Comps Avg | $________ | |
| Days on Market | ______ | |
| Needed Repairs | $________ | |
| Max Budget | $________ | |
| Offer Price | $________ | Justified? Y/N |
- Contingency Drafting Activity
- Write your own contingency for:
- Home inspection
- Appraisal
- Financing approval
- Faith Reflection Prompt
- Have I surrendered the outcome of this offer to God?
- Am I making this decision with peace or pressure?
- What values will I not compromise on during negotiation?
XIV. TEACHER’S MANUAL SNAPSHOT
Goals:
- Teach the components and purpose of a purchase offer
- Help students identify key negotiation points
- Equip buyers to create offers that are both strategic and protected
Tools Needed:
- Sample offer contracts
- Seller disclosure examples
- Earnest money policy templates
Activities:
- Mock negotiation roleplay
- Group analysis of offer packages
- Discussion: “What would you do?” scenarios
- PARTICIPANT GUIDE SUMMARY
Includes:
- Sample purchase offer template
- Offer strategy builder
- Negotiation log
- Buyer’s checklist for offer and escrow
Weekly Assignments:
- Review a current listing and create an offer strategy
- Watch a YouTube video of a negotiation walkthrough
- Write and share a sample offer with a peer
XVI. CONCLUSION
Making an offer is both an act of strategy and an expression of faith. It is a declaration of readiness, stewardship, and wisdom. When done well, it invites favor. When done hastily, it invites regret. Your voice matters—let your offer speak truthfully and powerfully.
Scripture Reminder: “Let your ‘Yes’ be ‘Yes,’ and your ‘No,’ ‘No.’” — Matthew 5:37 (NIV)
Let your offer reflect your values, your research, and your readiness. And trust that the right home will open its doors to you.
