How to Make an Offer on a House in New York: What Binds You and When
In New York, a seller who says yes to an offer has not promised anything, and the buyer who made it has not either. Both sides stay free to leave until a formal contract of sale is signed, which Nolo’s New York guide says usually happens at least a week after the acceptance. Most of what makes an offer strong or weak follows from that interval, because the offer is only the proposal that two attorneys will then turn into a contract.
The financing side of the interval has also become harder to ignore. Freddie Mac’s weekly mortgage survey put the average 30-year fixed rate at 7.40% on October 8, 2026, compared with 7.28% a week earlier and 6.30% a year earlier. That figure is a national average and not a Long Island quote, but it is reason enough to read the financing language in an offer closely before sending it. A separate post covers what the 7.40% climb costs a New York buyer.
An accepted offer starts a second negotiation
The offer itself usually travels as an email to the listing agent. Hauseit’s guide to New York offers lists what it carries: a price, evidence of financing, any contingency being requested, the planned deposit, and a closing date if timing matters. Acceptance may come back verbally. Nothing is enforceable yet.
What follows is attorney work. Nolo’s description of the roles of the attorney and agent in a New York purchase says the seller’s attorney usually drafts the first version of the contract, and the buyer’s attorney answers with a rider carrying the buyer’s terms. The buyer signs and sends the contract along with the deposit to the seller’s attorney, and the seller signs last. Until that countersignature, Hauseit explains in its piece on why offers are not binding in New York, a seller can still back out or even shop the buyer’s signed contract to someone else. Hauseit writes about New York City purchases, so a Long Island buyer should have an attorney confirm how the same steps run for a specific house.
| Stage | Buyer | Seller |
|---|---|---|
| Offer made and accepted | Free to walk away | Free to walk away or take another offer |
| Buyer has signed the contract and delivered the deposit | Committed by signature, subject to the contract’s contingencies | Not yet committed |
| Seller has countersigned | Committed | Committed |
Summarized from Hauseit and Nolo. The terms of the actual contract control.
What to line up before the offer goes out
Three things should be settled before an offer is sent: an attorney, proof of financing, and a look at the seller’s disclosure form (covered below).
An attorney. Nolo says buyers and sellers in New York each customarily have their own lawyer, and that a buyer should plan to hire one. After the contract is signed, the attorney orders the title report, handles lender paperwork and calculates closing costs.
Financing evidence. Hauseit treats a pre-approval letter as the serious document and says a prequalification letter weakens an offer. Cash buyers typically send a bank or investment statement as proof of funds, with account numbers blacked out. Once a mortgage is in play, a related post explains why a mortgage commitment letter is not the same as a final loan approval.
An agent agreement. Buyers who work with an agent sign a written agreement before the first showing, a requirement covered in this post on the buyer’s agent agreement.
What goes into the offer
| Item | What to state | Why it matters |
|---|---|---|
| Price | A dollar figure, noting whether it meets or beats the asking price | Hauseit calls price the most important part of the email |
| Financing | A pre-approval letter, or proof of funds for a cash purchase | A prequalification letter is the weaker document |
| Contingencies | A request for a mortgage contingency; terms are settled later in the contract | It lets a buyer exit a signed contract if no loan commitment arrives within the contract’s deadline |
| Deposit | The planned amount, or a ceiling as a percentage or dollar figure | Nolo puts the contract deposit at about 10% of the price, separate from the down payment due at closing |
| Closing date | Only if timing matters, such as a lease ending; otherwise “flexible” | Flexibility can help an offer |
| Attorney | Name and contact details, if one is already hired | It speeds up the contract stage |
Hauseit adds a few optional extras: a short bio placed in the body of the email, and a personal letter that it says can help when several buyers compete. In that situation, a related post treats the appraisal gap addendum as a negotiating instrument, and another covers why the contingency removal deadline is a hard stop.
The disclosure form that has to arrive before signing
Under the state’s Property Condition Disclosure Act, the seller must complete and sign a disclosure statement and deliver it to the buyer or the buyer’s agent before the buyer signs a binding contract. A copy bearing both signatures is attached to the purchase contract, according to the text of Real Property Law section 462. The Department of State’s page on the form describes it as covering one- to four-family homes and leaving out condominium units and co-op apartments, a distinction that matters on a condo, co-op or townhouse purchase.
Amendments took effect on March 20, 2024, and three points from them bear on an offer:
- The $500 credit that a seller could once give a buyer in place of the statement is gone, as the New York State Bar Association’s notice, Stewart Title’s summary and a Long Island land use blog all report.
- The form now asks about flooding: whether the property sits in a FEMA floodplain (100-year or 500-year), whether flood insurance is required or in place, whether an elevation certificate exists, and whether the seller has received federal flood assistance or filed a flood claim. A related post explains what an elevation certificate records.
- Sellers answer from what they actually know. Stewart notes that marking a question “unknown” does not protect a seller who knew the answer, and that knowingly false statements can expose a seller to claims for actual damages.
The statement is not a warranty, and it does not replace inspections; “as is” sales remain allowed. Stewart adds that a buyer’s agent has to explain the statement’s requirements before the buyer signs. For more on why this form carries legal weight, see the post on the seller’s disclosure form as a legal document.
What the rate does to the number you offer
A higher rate changes how much house the same monthly payment buys, which is worth working out before choosing an offer price. The table below uses a hypothetical $500,000 loan on a 30-year term, principal and interest only, at the three Freddie Mac readings above.
| Freddie Mac reading | Monthly principal and interest |
|---|---|
| 6.30% (a year earlier) | $3,095 |
| 7.28% (a week earlier) | $3,421 |
| 7.40% (October 8, 2026) | $3,462 |
Between 6.30% and 7.40%, the payment on that loan rises by roughly $367 a month, or about $4,400 a year. Put the other way, a loan of about $447,000 at 7.40% carries the same payment as $500,000 at 6.30%, which is around $53,000 less borrowing. Taxes, homeowners insurance and mortgage insurance are not included, and none of this is a rate quote. For a side-by-side look at how the numbers change by location, a related post prices the same $760,000 home in New York City and on Long Island.
From accepted offer to closing, in order
- The seller accepts, often verbally, and nothing is binding yet.
- The inspection happens. Nolo advises buyers to have the property inspected before signing the contract. Separate posts cover what the state’s home inspection standards include and leave out, what an inspection contingency does and does not protect, and radon testing and what it costs.
- The attorneys trade drafts. The seller’s attorney supplies the contract; the buyer’s attorney adds the rider.
- The buyer signs and delivers the deposit. Per Nolo, the seller’s attorney holds it in an escrow account, usually one that earns no interest, and the seller cannot spend it while the sale is pending.
- The seller countersigns. Hauseit notes that a buyer’s attorney can negotiate a clause making the contract effective only after the attorney confirms in writing that the fully signed copy has arrived.
- The loan commitment, title search and closing follow. During the escrow period, Nolo says, the buyer’s attorney handles financing details and the title search.
When the deposit is at risk
Nolo draws the line this way. A buyer who cancels under a contract contingency, such as failing to obtain a mortgage, generally does not put the deposit at risk. A buyer who walks away for a reason the contract does not allow is in default, and most New York contracts let the seller keep the deposit as liquidated damages. If the buyer objects, the money is typically held until the dispute is resolved, and Nolo recommends speaking with an experienced New York real estate attorney before walking away from a signed contract. A related post covers the legal distinction between earnest money and a deposit, and who keeps it.
Things worth bringing to a showing or inspection
A few inexpensive tools make walk-throughs more useful. None replaces a licensed inspector, and a buyer should ask permission before testing anything inside a home that belongs to someone else.
- The Klein Tools RT210 outlet tester checks standard and GFCI outlets for common wiring faults. See it on Amazon (affiliate link)
- The Bosch GLM100-23 laser measure reads distances up to 100 feet, which settles layout and furniture questions on the spot. See it on Amazon (affiliate link)
- The AprilAire short-term radon test kit includes prepaid shipping and lab fees. See it on Amazon (affiliate link)
- A 13-pocket expanding file keeps the pre-approval letter, disclosure statement, contract drafts and inspection report in one place. See it on Amazon (affiliate link)
Questions buyers ask
Is a verbal offer binding in New York?
According to both Nolo and Hauseit, no. A buyer or seller becomes committed only through a signed contract of sale, and the seller’s commitment begins at the countersignature.
How large is the deposit?
Nolo and Hauseit both describe it as about 10% of the purchase price, paid when the buyer signs the contract. It is separate from the down payment at closing, and the exact figure is a contract term for the attorneys to settle.
Does a buyer need an attorney?
New York buyers and sellers customarily each hire one, and Nolo says a buyer should plan on it. Whether a particular situation calls for one is a question for a licensed attorney.
Can a seller take a higher offer after accepting mine?
Until the seller countersigns the contract, Hauseit says, yes. A buyer’s attorney can negotiate language intended to narrow that risk. A related post looks at when a seller should walk away from an offer, from the other side of the table.
What if the seller never hands over the disclosure statement?
The law requires delivery before the buyer signs a binding contract, and the $500 credit is no longer an alternative. What remedies apply in a specific case is a question for the buyer’s attorney.
Does a 7.40% average mean a buyer will be quoted 7.40%?
No. Freddie Mac’s figure is a national weekly average, and a lender’s quote depends on the borrower and the loan.
This is for informational purposes only — consult a licensed attorney or financial advisor for your specific situation.
Real estate markets change. For current listings and market data, contact Maison Pawli at maisonpawli.com/about/.
You Might Also Like
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- When to Walk Away From an Offer on Long Island
Sources
- Freddie Mac, Primary Mortgage Market Survey (rates as of October 8, 2026): https://www.freddiemac.com/pmms
- New York State Senate, Real Property Law section 462: https://www.nysenate.gov/legislation/laws/RPP/462
- New York State Bar Association, new property condition disclosure and flood risk rules: https://nysba.org/?p=163648
- New York State Department of State, Property Condition Disclosure Statement: https://dos.ny.gov/property-condition-disclosure-statement
- Stewart Title, Property Condition Disclosure Statement amendments: https://www.stewart.com/insights/property-condition-disclosure-statement-amendments
- Long Island Land Use and Zoning, mandatory disclosure statements and the end of the $500 credit: https://www.lilanduseandzoning.com/2024/02/05/disclosure-revolution-legislation-makes-property-condition-disclosure-statements-mandatory-adding-flood-risks-and-waving-farewell-to-the-500-credit/
- Nolo, what “in contract” means for New York home buyers (last updated August 14, 2023): https://www.nolo.com/legal-encyclopedia/new-york-home-buyers-what-does-it-mean-be-in-contract-what-happens-your-downpayment.html
- Nolo, buying a New York home and the roles of your attorney and agent: https://www.nolo.com/legal-encyclopedia/buying-new-york-home-roles-your-attorney-real-estate-agent-will-play.html
- Hauseit, how to make an offer on a house in NYC: https://hauseit.com/how-to-make-an-offer-on-a-house-nyc
- Hauseit, are real estate offers binding in NYC: https://www.hauseit.com/are-real-estate-offers-binding-in-nyc/
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