Here is a list of all the major terms and conditions to take into consideration when you begin to submit offers! There are plenty of other timelines and terms to consider, but they are dependent on the specific property and situation.
- Purchase price – The amount you want to pay for the house!
- Earnest money amount and due date – Earnest money is known as a good faith deposit and is used as collateral if you breach your contract. Typically 1% of the purchase price and due 3-5 days after mutual acceptance. Your offer will appear more desirable in the eyes of the seller if you offer more earnest money, which will help you stand out if there are multiple offers submitted.
- Included items – Any appliances or items you want included in the purchase of the home. (Dishwasher, microwave, washer, dryer, hot tub, etc.)
- Seller contributions – Money from the seller used for closing costs, rate buydowns, or other items that you request. It will come out of the seller’s net proceeds and will be transferred at the time of closing. Different loan types have different limitations on the amount you can request.
- Inspection period – Your chance to hire contractors and inspectors to examine the property and make sure it is worthy of the purchase. You can choose the number of days you have and request the seller pay for other services, including but not limited to: a septic pump & inspection or well draw down test.
- Closing and possession date – The day you want the home purchase to be completed and recorded by county. Possession is commonly the day of closing at 9pm, or at the time of recording, but you can request a date before or after with accompanying forms outlining terms. Talk to your lender to see how long it will take them to complete the loan process… likely around 30-45 days from mutual acceptance.
