How To Make An Offer On A House In Texas
Making an offer on a house in Texas starts with a lender pre-approval letter and a completed TREC promulgated contract. A standard Texas offer includes five core components: purchase price, earnest money deposit (typically 1% of the sale price), option period fee, financing terms, and contingency deadlines. Buyers lose deals in the details, because the option period length and earnest money amount signal how seriously a seller takes your offer.
Before You Write the Offer
- Pre-approval first: Texas sellers expect a lender pre-approval letter attached to every written offer, not just a pre-qualification estimate
- Proof of funds: You need a bank statement or verification letter showing your earnest money and down payment are liquid and accessible right now
- Common blocker: Submitting without a pre-approval or submitting an expired letter kills your offer before the seller even reads the price
- Worth knowing: Texas uses the TREC promulgated contract forms, so your agent fills in the blanks on a state-standard document rather than drafting from scratch
What You Need Before Making an Offer
- Must have: A mortgage pre-approval letter from your lender, dated within 30 days, showing verified income and borrowing power rather than a rough pre-qualification estimate.
- Strongly recommended: A buyer’s agent who knows your target area and can pull recent comps to help you set a competitive offer price on short notice.
- Optional but helpful: A personal letter to the sellers explaining your connection to the home, though some listing agents discourage these over fair housing concerns.
- Bottom line: Sellers in competitive Texas markets routinely skip offers that arrive without a pre-approval letter, so get that squared away before you tour homes, not after you find one.
Offer to Contract Timeline
- Setting the price: Your agent pulls comparable sales from the last 90 days and you agree on an offer price, earnest money amount, and option period length before submitting.
- Submitting the package: Your agent completes the standard Texas contract, attaches your pre-approval letter and earnest money check details, then sends the full package to the listing agent.
- Negotiation round: The seller accepts, rejects, or counters your offer, and most listing agents in Texas expect a response within 24 to 48 hours unless stated otherwise.
- Typical turnaround: From pulling comps to an executed contract, a clean single-offer situation typically wraps in 2 to 5 days, though competitive listings can compress that to under 24 hours.
What It Costs to Make an Offer
- Earnest money: Texas buyers typically deposit 1% to 3% of the purchase price, due within one to three days after the contract is executed.
- Option fee: Texas has an unrestricted option period costing $100 to $500, paid directly to the seller for the right to walk away for any reason.
- Cost offsets: Ask the seller to contribute toward closing costs, negotiate a longer option period at a lower fee, or request repairs instead of a price reduction.
- Total upfront: On a $350,000 home, plan for $3,500 to $10,500 in earnest money plus a $200 to $500 option fee before you reach the closing table, so budget those funds early.
How do you make an offer on a house in Texas?
Get pre-approved by a lender first, then work with your agent to submit a written offer using the Texas Real Estate Commission’s standard contract. Your offer should include your price, earnest money amount, option period length, financing details, and any contingencies like inspection or appraisal.
How does making an offer on a house in Texas work?
Your agent drafts a written purchase offer specifying price, earnest money, contingencies, and closing timeline. In Texas, you should get pre-approved by a lender before submitting. The seller can accept, reject, or counter your offer, and negotiations continue until both sides agree on terms or walk away.
Who can make an offer on a house in Texas?
Anyone can submit an offer on a Texas home, but sellers and listing agents expect buyers to have lender pre-approval before the offer is written. Pre-approval confirms your financing is verified, which puts your offer ahead of competing buyers who haven’t completed that step.
The Bottom Line Up Front
Making an offer on a house in Texas means submitting a signed TREC promulgated contract, not just telling the seller’s agent you’re interested. Price gets all the attention, but the terms inside that contract, option period length, earnest money amount, financing contingency deadlines, and closing date, determine whether your offer gets accepted or countered. Most competitive offers lose on structure, not on price.
Texas requires buyers to use one of several TREC promulgated contract forms. The standard One to Four Family Residential Contract covers most single-family purchases. Your earnest money deposit, typically 1% to 2% of the purchase price, goes into an escrow account within the timeline specified in the contract. The option period, usually 7 to 10 days, costs $100 to $500 and gives you the unrestricted right to terminate for any reason. Sellers in competitive markets weigh option period length and earnest money size heavily when comparing multiple offers.
- Get pre-approved before you tour homes so sellers take your offer seriously from the start.
- Texas uses TREC promulgated contract forms, and your agent fills in the blanks specific to your deal.
- Earnest money typically runs 1% to 2% of the purchase price and goes into escrow immediately.
- The option period (usually 7 to 10 days) gives you an unrestricted right to walk away.
- Stronger offers shorten the option period and increase earnest money rather than simply raising the price.
License Holder Search
Texas requires every real estate agent and broker to hold an active license through the Texas Real Estate Commission (TREC). Run your agent’s name through TREC’s License Holder Search before you sign a buyer representation agreement or submit an offer. It’s free. The database returns license status, expiration date, sponsoring broker, and any disciplinary history in about two minutes.
The results reveal more than just active-or-inactive status. You see whether the agent holds a salesperson license or a broker license, how many years they’ve been licensed in Texas, and whether TREC has issued any formal complaints or enforcement actions. A clean record with multiple years of active licensing is the baseline you want. An agent whose license recently lapsed or who has unresolved complaints deserves a direct conversation before you hand over earnest money. The sponsoring brokerage also appears in the results, and that firm carries legal liability for the transaction.
Run the same search on the listing agent representing the seller. Texas purchase contracts use TREC promulgated forms, and both agents’ license numbers appear on the document. A mismatch between the contract and TREC’s records creates a title issue your closing attorney or title company flags, sometimes weeks into the process. Verify both sides before you submit. Most guides on making an offer in Texas skip credential verification entirely, and that oversight costs buyers real time when a license problem surfaces during the contract-to-close period.
Related Pages
Texas homebuyers should check several state-specific resources before writing an offer on any property. The Texas Real Estate Commission hosts all approved contract forms online, including the One to Four Family Residential Contract (TREC 20-17) required for most single-family transactions. Your county appraisal district publishes current assessed values and tax rates that directly shape your offer price.
The Texas Property Code requires sellers to complete a Seller’s Disclosure Notice for most residential transactions, and reviewing a blank copy before you tour homes helps you know what sellers must reveal. Your county clerk’s website stores deed records, lien histories, and recorded easements that affect the title you would receive. The Texas Department of Insurance sets promulgated title insurance rates statewide, so every title company charges the same premium. Knowing this saves you from shopping title insurance on price when the real difference between providers is service quality and closing speed.
Pulling property tax records, checking for outstanding liens, and reading the seller’s disclosure obligations before your agent writes the offer puts you ahead of most competing buyers. A lien that surfaces during title search after you’re under contract costs you time and negotiating position. Finding it beforehand lets you adjust your price or walk. Most buyers skip this step entirely. One hour on your county’s public records site gives you data that reshapes how you negotiate.
How to Submit a Competitive Offer in Texas?
A competitive Texas offer starts with a fully underwritten pre-approval, earnest money above the standard 1%, and contract terms shaped around what the seller actually needs. Price alone won’t win. Your agent submits the offer through the TREC 1-4 residential contract, and four specific components consistently separate accepted offers from ignored ones.
- Earnest money above 1%: The standard Texas earnest money deposit sits around 1% of the purchase price, but competitive buyers in markets like Austin, San Antonio, and the DFW Metroplex consistently put down 2-3%. On a $350,000 home, that’s $7,000-$10,500 held at the title company. Sellers view a higher deposit as proof you’re financially committed and unlikely to walk over minor repair findings during the option period.
- Option period compression: Texas gives buyers a unique unrestricted option period, typically 7-10 days, where you can cancel the contract for any reason and only lose the option fee. In a competitive situation, shortening this window to 5-7 days and increasing the non-refundable option fee from the typical $100-$200 to $500 or higher shows the seller you’ve already evaluated the property and aren’t planning to renegotiate after inspections.
- Faster closing timeline: Standard Texas closings take 30-45 days from executed contract to funding. If your lender provides a written commitment to close in 21-25 days, that speed advantage regularly beats competing offers priced $5,000-$10,000 higher but needing 45 days. Sellers carrying two mortgages, relocating for work, or facing a lease expiration respond strongly to shorter timelines because every extra week costs them money.
- Seller-priority matching: Ask your agent to call the listing agent before you write the offer. Some sellers need a post-closing leaseback of 30-60 days while they finalize their next home. Others prefer a specific title company or need flexibility on the closing date to coordinate with a job transfer. Structuring your offer around the seller’s actual situation, not just the highest price, regularly turns a mid-range bid into the winning package.
How Long the Offer Process Takes
Most Texas offers move from submission to signed contract within 24 to 72 hours. The seller has no legal deadline to respond under the TREC One to Four Family Residential Contract, so response time depends on competition and motivation. In a multiple-offer situation, sellers often set a deadline, commonly 24 hours, and review everything at once. Single-offer scenarios tend to stretch closer to 48 hours as sellers weigh counteroffers.
The option period adds another layer unique to Texas. Buyers typically negotiate a 7 to 10 day unrestricted option period by paying an option fee between $100 and $500 directly to the seller. During this window, the buyer can terminate for any reason and forfeit only the option fee. Inspections, appraisal orders, and lender document requests all stack into this period. A shorter option period, 5 days, can strengthen your offer, but only if your inspector and lender can move that fast.
From accepted contract to closing, the standard Texas timeline runs 30 to 45 days for conventional and FHA loans. VA loans sometimes need 40 to 50 days because of the VA appraisal process, which requires a VA-assigned appraiser rather than a lender-chosen one. Cash deals close faster, sometimes in 14 to 21 days, since they skip the lender underwriting timeline entirely. Title companies in Texas handle closings rather than attorneys, which can shave a few days off the process compared to attorney-closing states. Build buffer into your target close date. Lender delays, title curative work on older properties, and survey issues are the three most common causes of pushed closings in Texas transactions.
Earnest Money and Closing Costs to Expect
Texas earnest money deposits run 1% to 2% of the purchase price, held in a title company escrow account. On a $350,000 home, that means $3,500 to $7,000 due within three business days of an executed contract. Buyer closing costs add another 2% to 5% of the loan amount, so budget $7,000 to $17,500 on that same purchase.
One cost catches transplants off guard. Texas buyers pay for the owner’s title insurance policy by default, unlike most states where the seller covers it. That charge is negotiable in the TREC contract, but most sellers expect the buyer to carry it. Other line items include the lender’s title policy, appraisal ($400 to $600 in most metros), survey ($350 to $500 if the seller lacks a recent one), recording fees, and prepaid property taxes. Tax prorations swing by thousands depending on your closing date relative to the county’s January billing cycle.
The TREC contract also requires a separate option fee, usually $100 to $500, paid directly to the seller when you go under contract. This buys your unrestricted right to walk during the option period, typically five to ten days. The option fee is non-refundable if you cancel, but gets credited toward your purchase at closing. Earnest money follows different refund rules: you get it back if you terminate during the option period or if a financing or appraisal contingency fails.
Can You Back Out After an Offer Is Accepted?
Texas buyers can back out after a seller accepts an offer, but what it costs depends on when you cancel. The TREC One to Four Family Residential Contract includes an unrestricted option period, typically 7 to 10 calendar days. During that window you can terminate for any reason and forfeit only the option fee paid at execution.
The option fee runs $100 to $500 in most Texas markets and goes directly to the seller as a non-refundable payment when the contract is executed. That small outlay buys you unrestricted termination rights for the agreed number of calendar days. Use every day of it. Schedule a general inspection, order a foundation evaluation if the home sits on a slab, review the preliminary title commitment for liens or easements, and confirm your lender can hit the appraisal and closing timeline. Any red flag during the option period gives you a clean exit with your full earnest money returned.
After the option period expires, your exit points narrow to the contract’s surviving contingencies. A financing condition that falls through or a title defect the seller cannot cure still allows termination without forfeiting earnest money. Beyond those contractual outs, walking away gives the seller grounds to claim your deposit as liquidated damages. The funds go into a title company hold until both parties agree to release or a mediator resolves the dispute. Stack your inspections, appraisal, and lender verification inside the option window so the stay-or-go decision happens while your risk is still capped at the option fee.
The Bottom Line
Making an offer on a Texas house comes down to preparation before you ever write a number on the contract. Verify your agent’s TREC license, get fully underwritten pre-approval, and budget 1% to 2% of the purchase price for earnest money held in a title company escrow account. On a $350,000 home, that means $3,500 to $7,000 due within three business days of an executed contract. Price alone does not win offers here. Contract terms shaped around what the seller actually needs carry real weight.
Expect the process from submission to signed contract to take 24 to 72 hours, and know your options for backing out before you commit. The strongest Texas offers pair solid financials with clean terms and realistic timelines.
Frequently Asked Questions
How does earnest money work when making an offer in Texas?
Earnest money shows the seller you’re serious about buying. In Texas, buyers typically deposit 1% to 2% of the purchase price with the title company within a few days of executing the contract. On a $350,000 home, that’s $3,500 to $7,000. The money applies toward your closing costs or down payment at closing. If you back out during the option period (which has its own separate fee), you get your earnest money back. Outside that window, you risk forfeiting it unless a contract contingency protects you, such as a financing or appraisal contingency.
Is there a standard offer template for buying a house in Texas?
Texas uses promulgated contract forms from the Texas Real Estate Commission (TREC). The most common is the One to Four Family Residential Contract, form number 20-17. Licensed agents are legally required to use these TREC forms rather than drafting custom contracts. The standardized forms cover purchase price, earnest money, option period terms, title and survey provisions, financing details, and closing timelines. Addenda handle specific situations: the Third Party Financing Addendum for mortgaged purchases, the Seller’s Disclosure Notice, and property-specific addenda for condos or new construction. Your agent fills in the blanks for your transaction.
Can you make an offer on a house in Texas without a real estate agent?
Yes. Texas law does not require buyer representation to submit a purchase offer. You can download TREC promulgated forms directly from the Texas Real Estate Commission website and fill them out yourself. The risk is that contract terms, option periods, and contingency deadlines carry real financial consequences if handled incorrectly. Without an agent, no one on the transaction represents your interests, because the listing agent works for the seller. Many buyers in this situation hire a real estate attorney to review the contract before signing, which typically costs $300 to $800 for a flat-fee review.
What contract do you use for a for-sale-by-owner purchase in Texas?
The same TREC promulgated forms apply whether the seller uses an agent or not. For a standard residential FSBO transaction, you use the One to Four Family Residential Contract (TREC 20-17) plus relevant addenda. TREC forms are available for download from the commission’s website. Since neither party has agent representation in a true FSBO deal, both buyer and seller should consider hiring a real estate attorney. A title company still handles closing, escrow, and title insurance. Budget $500 to $1,500 for attorney fees on top of standard closing costs.
Who pays for the home inspection when buying a house in Texas?
The buyer orders and pays for the home inspection. In Texas, inspections typically cost $350 to $600 for a standard single-family home, with larger or older properties running higher. The inspection happens during the option period, a negotiated window (usually 7 to 10 days) where the buyer can terminate the contract for any reason. If the inspection reveals major issues like foundation problems, roof damage, or outdated electrical systems, you can negotiate repairs, request a price reduction, or walk away. The seller provides a separate Seller’s Disclosure Notice but does not cover the buyer’s inspection costs.
What Texas closing laws should buyers know before making an offer?
Texas is a community property state, so both spouses must sign closing documents even if only one is on the mortgage. Closings are handled by title companies rather than attorneys, though either party can hire one. The seller is required to provide a Seller’s Disclosure Notice covering known property defects. Texas does not have a mandatory attorney review period like some northeastern states. Closing typically takes 30 to 45 days from the executed contract. Property taxes are prorated at closing, and Texas has no state income tax, so there are no state tax withholding requirements on residential sales.
Karishma Rupani
Agent Mentor · San Antonio & Austin · TREC #617273
Karishma Rupani brings a decade of real estate experience to Levi Rodgers Real Estate Group, serving an international clientele and mentoring new agents across the San Antonio market.
