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Helpful answers
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May 9, 2016 1:08 PM in response to @cookslifeby @cookslife,I'm trying to reset it to factory settings I mean. I get the iPhone 5 to recovery mode where you hold the home button and plug it in at the same time, but it's just my iTunes that won't recognize at that point. I get no window asking to restore phone.
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May 9, 2016 2:40 PM in response to @cookslifeby sberman,Well, you haven't told us a whole lot about the specifics, so there are many possible issues.
The frist is that you need a current version of iTunes (12.3.3). Do you have this?
Another is the iPhone may be Activation Locked.
Find My iPhone Activation Lock - Apple Support
If this is the case, the original owner will have to release the iPhone from Find My iPhone or it will remain unusable forever.
By the way, your post's title says "have latest software", but that doesn't really mean much. If you have an old Mac, "latest software" may be years behind current. Version numbers would be much more helpful.