The offer is a written purchase proposal signed by you and anyone else that will be a part-owner. Generally, your REALTOR® will write the offer for you.
The offer should include:
Price you want to pay for the house
Amount of earnest money you are willing to commit (generally 1%-3% of the purchase price) and who will hold the money during the escrow period. Earnest money serves as a good faith deposit and is usually applied at closing to your down payment and closing costs.
Option period/money– A non-refundable fee paid to the seller for an agreed upon number of days during which the buyer can cancel the contract for any reason without penalties
Legal names of all of the buyers and sellers
The address and exact legal description of the house
The closing date
Make sure the date is realistic – you will need time to obtain financing and have inspections
Generally this is within 45-90 days
How you intend to pay for the property
A list of material goods you expect the seller to leave in the house, such as appliances, hanging lamps, and draperies
All contingencies (things that have to happen or the contract may be canceled)
If a loan is involved, the contract is usually contingent on the bank approving the loan
Breakdown of who pays the closing, title, loan and escrow expenses and the cost of any required inspections
Time limit for the seller to accept the offer
Usually 24-48 hours
Once you and the seller have negotiated a price and you have both signed the offer, you have a binding contract.
