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6 min read ·Find Your Home

Making an Offer

Key Takeaways

✓Your offer includes more than just price—terms matter too
✓Earnest money shows you're serious and is credited toward your purchase
✓Contingencies protect you but can weaken your offer

Anatomy of an Offer

An offer includes the purchase price, earnest money deposit, financing type, closing date, contingencies (inspection, appraisal, financing), and any special terms. Your agent helps you craft an offer based on market conditions, seller motivation, and comparable sales.

Anatomy of a purchase offer showing key components

Understanding Earnest Money

Earnest money is a deposit showing you're serious—typically 1-3% of the purchase price in Kentucky. It's held in escrow and credited toward your down payment or closing costs at closing. If you back out for a reason not covered by contingencies, you may forfeit this money.

Contingencies: Protection vs. Competitiveness

Contingencies let you back out if certain conditions aren't met (inspection issues, financing falls through, appraisal comes in low). They protect you but can make your offer less attractive. In competitive markets, buyers sometimes waive contingencies—this is risky and not recommended for first-time buyers.

🏠 Kentucky Market Conditions

Kentucky's market varies by location. Louisville and Lexington can be competitive with multiple offers. Smaller cities and rural areas often favor buyers with more negotiating power. Your agent should provide a comparative market analysis (CMA) showing what similar homes sold for recently.

✅ Your Next Step

Discuss offer strategy with your agent before finding "the one" so you're ready to move quickly when you do.

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