~3 minute lesson · Beginner · Buying a Home
What goes into an offer?
The Short Answer
Price is only one of the promises in a purchase agreement.
How It Works
Spell out the transaction
An offer identifies the property, price, financing, deposit, proposed closing date, included items, and other terms. It may address credits, inspections, repairs, contingencies, and possession. Your agent can explain the form, but you should understand the obligations before signing it.
Make the terms fit your situation
Work backward from the money you have available, the lender’s schedule, and the investigations you need. A promise to close quickly is useful only if the necessary work can actually be completed. Confirm how any seller credit interacts with loan limits rather than assuming it can cover every cost.
Review counteroffers carefully
A counteroffer can change more than price. Compare dates, responsibility for fees, excluded fixtures, and any changes to protective conditions. Keep a complete signed set of the final agreement and amendments. Negotiating an attractive headline number does not help if another term makes the purchase impractical.
What to Remember
- Spell out the transaction
- Make the terms fit your situation
- Review counteroffers carefully
Read the entire agreement as a set of obligations, dates, and costs.