The full explanation
It includes the price you offer and the terms of the purchase: your target closing date, who pays certain fees, a deadline for the seller to respond and any contingencies, which are conditions that must be met before you buy. The seller can accept it or answer with a counteroffer, and you can accept, reject or counter again. Once both parties sign the written offer, it becomes a contract.
An example
After seeing several homes, Jorge and Lupe make an offer a little below the list price, with an inspection contingency. The seller sends a counteroffer and, after negotiating, both sign.
You will see it in…
- The offer form your real estate agent prepares
- The seller's counteroffer, with the changes it asks for
- Your preapproval letter, which often goes with the offer
