Finding the house is only part of buying it.

Once you decide you want to make an offer, you’ll be asked to sign a purchase contract that lays out the actual price and terms you’re offering the seller.

This is where things can move quickly, especially if there are multiple offers.

And one of the biggest mistakes buyers make is focusing almost entirely on one number:

The purchase price.

Price matters.

But it is only one part of the offer.

Your financing, earnest money, inspection terms, closing date, credits, contingencies, and several other pieces can change how attractive your offer looks to the seller and how much protection you have as the buyer.

Here are the major things we want our buyers to understand before they sign a purchase contract.

1. The Purchase Price Is Only One Part of Your Offer

Let’s say a seller receives two offers for $600,000.

At first glance, they look identical.

But one buyer:

• Is asking for a $10,000 closing-cost credit
  
  
• Has a smaller earnest-money deposit
  
  
• Needs to sell another home first
  
  
• Has a longer closing timeline
  
  
• Has weaker financing
  
  

The other buyer isn't asking for a credit, has strong financing, and can close on the seller’s preferred timeline.

Those are two very different offers.

That is why we don't just ask:

“How much should we offer?”

We look at the whole structure of the offer.

Sometimes the strongest move is increasing price.

Sometimes it isn't.

The goal is to understand what matters to the seller and build the strongest offer we can without exposing you to unnecessary risk.

2. Understand Your Financing Contingency

If you're financing the purchase, the contract will include terms related to your mortgage.

This can include things like:

• Your loan type
  
  
• Loan amount
  
  
• Financing timeline
  
  
• Interest-rate-related provisions
  
  
• Your obligations in pursuing financing
  
  

This is another reason we want your lender involved before we're rushing to write an offer.

If we find the right home Saturday afternoon and offers are due Sunday night, we want to already understand your financing.

We may also want your lender to run the numbers on that specific property.

A $600,000 home in Wheaton and a $600,000 home somewhere else can have very different property taxes, HOA expenses, and therefore monthly payments.

The purchase price tells us what the home costs.

It doesn't necessarily tell us what the home will cost you every month.

3. Know What You're Putting Down as Earnest Money

Earnest money is money you deposit after going under contract to demonstrate that you intend to complete the purchase.

It is not normally an extra charge on top of the purchase price.

Assuming the transaction closes as contemplated, it is generally credited toward the funds you owe at closing.

The amount and timing are terms of the offer.

And like the purchase price, earnest money can sometimes affect how a seller views an offer.

A larger earnest-money commitment may make an offer appear stronger, but that does not mean buyers should blindly put down as much as possible.

You should understand:

• How much earnest money you're offering
  
  
• When it needs to be delivered
  
  
• Who holds it
  
  
• Under what circumstances it may be returned
  
  
• Under what circumstances it could potentially become disputed
  
  

Your attorney can help explain your legal rights and obligations surrounding earnest money once you're under contract.

4. Inspection Is More Than "Pass or Fail"

The home inspection is one of the most misunderstood parts of buying a house.

The goal isn't to have an inspector tell you whether you should buy the home.

And we don't go into a transaction planning to use inspection as a way to renegotiate the deal over every small item.

The purpose is to learn more about the property than you could reasonably discover during a showing.

That can uncover things like:

• Electrical problems
  
  
• Plumbing issues
  
  
• Water intrusion
  
  
• Roof concerns
  
  
• HVAC problems
  
  
• Structural issues
  
  
• Sewer problems
  
  
• Safety concerns
  
  

Under the Multi-Board 8.0 contract, buyers can elect inspection provisions that provide rights regarding the property's condition, subject to the specific contract terms and deadlines. The current contract materials also contemplate additional inspections, including inspections beyond a standard home inspection.

Once we have the inspection results, the question becomes:

What actually matters?

Some issues may be better handled with a repair.

Some may make more sense as a credit.

Some may simply be things you plan to address after closing.

And occasionally, something is significant enough that the buyer needs to reconsider the purchase entirely.

That's where your agent, inspector, and attorney each play different roles.

Want to understand the buying process before you're writing an offer?

We offer a free 15-minute Buyer Strategy Session.

We'll talk through where you are in the process, what you're looking for, and what you should have in place before the right home comes along.

No pressure. No obligation to work with us.

[Schedule Your Free Buyer Strategy Session]

5. Your Attorney Review Period Matters

In our market, your real estate attorney becomes an important part of the transaction once a contract is accepted.

Your agent helps you structure and negotiate the business terms of the offer.

Your attorney reviews the contract and advises you on the legal terms and obligations.

Those are different jobs.

This is why we encourage buyers to have an attorney lined up before they're scrambling to find one after an offer gets accepted.

There are also contractual deadlines associated with attorney review and other contingencies, so once you're under contract, things begin moving quickly.

Your agent and attorney should be communicating with each other throughout that process.

6. Understand What Happens If the Home Doesn't Appraise

If you're using financing, your lender will typically order an appraisal.

The appraiser is evaluating the property for the lender.

That is different from your home inspection.

The inspector is primarily evaluating the condition of the property for you.

The appraiser is helping the lender determine whether the property supports the value necessary for the loan.

In a competitive market, you may hear terms such as:

Appraisal gap

or

Appraisal waiver

Those can materially change your financial risk.

For example, imagine you agree to buy a home for $650,000 but it appraises for $625,000.

What happens next depends on your contract, financing, any appraisal-related provisions, and what the parties negotiate.

The current Multi-Board 8.0 forms include a separate Appraisal Addendum that can be used when the parties want to address appraisal-related terms.

This is not something we want our buyers agreeing to simply because someone says:

“That's what it takes to win.”

We want you to understand exactly what you're agreeing to and what the potential financial exposure is.

7. Credits and Seller-Paid Costs Affect the Seller's Net

Sometimes buyers need or want the seller to contribute toward certain costs.

That could include negotiated closing-cost credits or buyer-broker compensation.

These terms can be very useful.

But they also affect the economics of your offer.

Imagine:

Offer A: $600,000 with $10,000 in seller concessions

Offer B: $595,000 with no concessions

The higher purchase price does not automatically mean the seller nets more money.

That is why we look at offers from the seller's perspective too.

Not because we're representing the seller.

We aren't.

We do it because understanding what the other side cares about makes us better negotiators for you.

Current Multi-Board materials specifically provide a mechanism for a buyer to make an offer contingent on the seller agreeing to pay negotiated buyer-brokerage compensation.

8. The Closing Date Can Be a Negotiating Tool

Buyers tend to think:

“Whatever closing date works for me.”

But sometimes timing matters substantially to the seller.

Maybe the seller has already purchased another home.

Maybe they need additional time to move.

Maybe they're trying to coordinate two closings.

Maybe they want to close as quickly as possible.

If we can accommodate the seller's preferred timeline without creating a problem for you, that can strengthen an offer without increasing the purchase price.

This is why we often have conversations with the listing agent before submitting an offer.

We want to know:

What does the seller actually care about?

A strong offer isn't always just the highest number.

9. Know Exactly What Is Staying With the House

Not everything you saw during the showing necessarily comes with the property.

Certain fixtures may generally transfer with the home, while other personal property may need to be specifically addressed.

Things that commonly create questions include:

• Appliances
  
  
• Washer and dryer
  
  
• TVs and mounting brackets
  
  
• Shelving
  
  
• Outdoor playsets
  
  
• Security equipment
  
  
• Garage refrigerators
  
  
• Window treatments
  
  
• Furniture
  
  
• Patio equipment
  
  

If something matters to you, we want it clearly addressed.

You don't want to arrive at the final walkthrough and discover that you and the seller had completely different assumptions about what was staying.

10. Contingencies Are There for a Reason

A contingency generally makes your obligation to complete the purchase dependent on certain conditions being satisfied.

Depending on the transaction, those could relate to things like:

• Financing
  
  
• Inspection
  
  
• Attorney review
  
  
• Appraisal
  
  
• Sale of another property
  
  
• Other property-specific circumstances
  
  

Removing or modifying contingencies can sometimes make an offer more attractive to a seller.

It can also increase your risk.

Those two things need to be weighed together.

We never want a buyer removing a protection simply because they heard that waiving contingencies is how you win a bidding war.

Sometimes changing a contingency makes strategic sense.

Sometimes it doesn't.

The important part is understanding the risk before making that decision.

FAQ

Is my offer binding once I sign it?

Signing an offer is a serious step, but the legal effect depends on whether and when the seller accepts it and on the specific terms of the contract.

Your real estate attorney should answer questions about your specific legal obligations.

Can I change my offer after submitting it?

Potentially, depending on where you are in the negotiation and whether it has been accepted.

Before acceptance, buyers and sellers may negotiate different terms. Once there is a fully executed contract, changes generally require agreement between the parties or must be permitted under the contract.

Can I back out after the inspection?

That depends entirely on the inspection provision you've agreed to, the condition discovered, the deadlines, and how the contract is structured.

The Multi-Board 8.0 materials provide inspection options with different rights and obligations, which is why buyers should understand the option selected before signing.

Consult your attorney regarding your particular contract.

Does the highest offer always win?

No.

Sellers can evaluate the entire offer, including price, financing, contingencies, credits, timing, and other terms.

We've seen plenty of situations where the structure of an offer mattered just as much as the headline price.

Should I waive inspection or appraisal to win a multiple-offer situation?

There is no universal answer.

Doing so may increase the attractiveness of an offer, but it can also materially increase your risk.

We want our buyers to understand that risk and make a deliberate decision with their agent, attorney, lender, and other professionals as appropriate.

The Bottom Line

When we write an offer, we're not just deciding:

“What price should we pay?”

We're building an entire package.

We need to think about:

Price

Financing

Earnest money

Inspection

Attorney review

Appraisal

Credits

Closing date

Contingencies

What matters to the seller

And most importantly:

How much risk makes sense for you.

The goal isn't simply to write the strongest offer possible.

It's to write the strongest offer we're comfortable having you actually live with if the seller says yes.

Get Prepared Before You Find the House

The worst time to learn how an offer works is at 7:30 on a Sunday night when you've finally found the house you want and offers are due in an hour.

That's why we offer a free 15-minute Buyer Strategy Session.

We'll talk through what you're looking for, where you are in the process, and how to get everything lined up so you're prepared when the right home comes along.

You don't need to be ready to make an offer.

You don't need to commit to working with us.

And there's no obligation.

[Schedule Your Free 15-Minute Buyer Strategy Session]

Important Disclaimer

This guide is for general educational purposes only and is not legal, tax, lending, or financial advice. Real estate contracts, contingencies, deadlines, rights, obligations, and transaction terms vary based on the specific contract, property, parties, and circumstances of the transaction.

Never rely on a general guide as a substitute for reviewing the actual contract you are signing. Consult your real estate agent regarding transaction strategy and your licensed real estate attorney regarding the legal terms, rights, obligations, and consequences of your specific agreement before signing or making decisions.

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