Making an offer on a property begins with you and your agent writing up a purchase agreement. This agreement is a legal contract, which if accepted, binds the buyer and seller to the sale of a property. It encompasses many details including:
The property address and legal description.
The price you are offering for the purchase of the property.
A detailed list of items that will be included in the sale.
Any contingencies to be satisfied before closing on a property.
Contingencies protect a buyer from actually purchasing the property until the contingency is satisfied to the buyer’s expectations. Putting contingencies in purchase agreement should be avoided unless absolutely necessary as they will “muck up” the offer. The seller in multiple offer situations may choose an offer with no contingencies even if the offer may have been for less money. It is best to discuss your concerns with your realtor professional to determine if a contingency is in your best interest. Once the buyer and seller accept the purchase agreement the process moves to the closing.