• Target closing date; • Earnest deposit associated with the offer, as well as method of deposit; • Disposition of earnest deposit if deal falls through or fails; • Plans for adjusting taxes, fuel, and water bills between buyer/seller; • Who will pay for title insurance, land survey, home inspections, etc.; • The deed to be granted; • State-mandated legal requirements; • Attorney review of contract; • Any disclosures; • 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 first-time buyer receiving a sufficient mortgage loan from their bank, or for current homeowners, 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, which we’ll discuss in Chapter 10.
Step 9: 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
76
Powered by FlippingBook