Offer. You will work with your buyer’s agent to create a purchase agreement. The purchase agreement is where you set out the specific terms under which you will purchase the property. You can negotiate price, possession, closing date, which appliances stay with the home, taxes, inspection, and much more. Your agent will help you determine the best approach to negotiating each of the items. The seller can then accept, reject or counter the offer.
Counteroffer.The counteroffer(s) is where you and the seller work toward an agreement acceptable to both parties. There may be several counteroffers before you reach the final agreement.
Earnest Money. Earnest money allows the buyer the opportunity to show the seller that they are “earnest” about their offer. Earnest money is submitted with an offer and the check is deposited and held by the listing agent’s broker upon acceptance of the offer. Earnest money is held in a non-interest bearing account and is applied to the buyer’s down payment costs at closing.
Contingencies.Contingencies are conditions that must be met for the purchase of the home to proceed. Common contingencies include financing, inspection, insurance and appraisal.