• The time after which the offer will expire
Something else to consider is contingencies. Many offers are made contingent upon a factor or event that must be resolved before the offer moves forward. The two most common contingencies are financing and home inspections. For financing, the offer is made contingent on the buyer receiving a sufficient mortgage loan from their bank, or contingent upon the sale of their home. For home inspections, the offer is made contingent upon a satisfactory home inspection report. This might seem like a lot to remember and keep in mind when making an offer on a home. That’s because it is. And that’s why you need to hire and work with an experienced real estate agent, so you can gain the upper hand and have the power in the negotiation process.
Step 8: Put Money in Escrow
Part of the home-buying process involves putting money into escrow; the buyer is expected to put money into escrow in order to make the contract binding, which then helps the contract move through and toward closure. A lot of people, both buyers and sellers, are confused about what “escrow” is. Essentially, it refers to a time period, not a place. Escrow is the period between 1) the time an offer of purchase is made on a property; and 2) the time when that property’s title is officially transferred from seller to buyer, or new owner. The escrow process is essential in cases in which the ownership title will be changed. The money put into escrow, or the initial deposit amount collected as part of escrow, is considered as “good faith” money or “earnest” money. This money is the payment amount that will follow the home purchase process. How much money are you, the buyer, supposed to put into escrow? This totally depends on the terms as stipulated in the offer of purchase. Still confused? 193
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