If you’ve ever wondered what exactly goes into an offer — or what happens after your Realtor submits it — this guide will walk you through the process. Whether you’re buying in Minnesota, Western Wisconsin, or anywhere across the Twin Cities, understanding how offers and negotiations work will help you make smarter, more confident decisions.

Step 1: Start with Your Pre-Approval

Before we can write an offer, we need one crucial piece of the puzzle — an updated pre-approval letter.
Even if you’ve been pre-approved before, we’ll get a fresh one every time we write an offer. Why? Because sellers want to see that your financing is current and solid.

As your Realtor, I’ll connect you with a trusted local lender and make sure your documentation is up-to-date before we submit anything. A strong pre-approval is the first signal to the seller that you’re a serious buyer.

Step 2: Decide on the Main Terms of the Offer

Every purchase agreement includes a few key elements:

  • Offer Price — What you’re willing to pay for the home.

  • Earnest Money — Your good faith deposit, typically around 1% of the purchase price.

  • Closing Date — When you plan to take ownership.

  • Contingencies — The protections you include, like inspection, financing, or selling another home first.

For example, on a $500,000 home, you might expect to provide about $5,000 in earnest money. It’s negotiable, but that’s the standard around the Twin Cities.

As your Realtor, I’ll also run a market evaluation so you’re writing an offer that’s competitive — not too high, not too low — based on what similar homes are selling for.

Step 3: Balance Protection and Competitiveness

Here’s where things get interesting.
The more contingencies you include, the safer you are as a buyer — but the less attractive your offer becomes to the seller. The goal is to protect yourself from surprises while still standing out in the seller’s eyes.

That’s where I come in: helping you find that balance so your offer gets noticed and accepted.

Step 4: Submitting the Offer

Once everything looks good, we’ll sign and submit your offer to the seller or their agent. From there, they have three options:

  1. Accept it as written.

  2. Reject it outright.

  3. Counteroffer — which is what happens most often.

A counteroffer means they’re interested but want to tweak something — maybe the closing date, the price, or the contingencies. When that happens, it comes back to us, and we decide whether to accept, reject, or counter again.

Step 5: Understanding Negotiation

Negotiation in real estate isn’t just about price. Sometimes it’s about timing, flexibility, repairs, or even the personal story behind your offer.

In a hot market like the Twin Cities has seen in recent years, buyers might increase their earnest money or tighten inspection timelines to make their offer more appealing.
In a slower market, you might have more room to negotiate — on price, closing costs, or contingencies that protect you.

The key is understanding the human side of the transaction. My job is to help position your offer so it speaks to the seller’s motivations — and gets you one step closer to owning your new home.

Final Thoughts

Writing an offer doesn’t have to be stressful. When you understand the process, it becomes a strategic and even exciting part of the homebuying journey.

 

If you’re thinking about buying, selling, or investing in real estate in Minnesota or Western Wisconsin, I’d love to help guide you through it.

 

Travis Andersen
Realtor | Minnesota & Western Wisconsin
Helping buyers and sellers make smart moves in every market.