> ## Documentation Index
> Fetch the complete documentation index at: https://learn.hometrics.ai/llms.txt
> Use this file to discover all available pages before exploring further.

# Making an Offer

> What happens when you find the right property and go under contract

When you find a property you want to buy, your agent helps you write an offer. If the seller accepts, you're "under contract" and the clock starts. Understanding offer components and what happens next prevents surprises during the most time-sensitive phase of the transaction.

## Offer Components

Every purchase offer includes fundamental elements that define the transaction.

<AccordionGroup>
  <Accordion title="Purchase price">
    The amount you're offering to pay. Your agent advises on pricing strategy based on market conditions, comparable sales, competition, and property condition.
  </Accordion>

  <Accordion title="Earnest money">
    A deposit demonstrating serious intent to purchase. Typically 1-3% of purchase price. This money is held in [escrow](/service-categories/title-escrow/overview) and applied toward your funds due at closing.
  </Accordion>

  <Accordion title="Contingencies">
    Conditions that must be met for the contract to proceed. They protect you from losing earnest money if specific problems arise. Common contingencies include financing, inspection, appraisal, and title.
  </Accordion>

  <Accordion title="Closing date">
    When the transaction will be completed and ownership transfers. Most financed purchases close 30-45 days after contract execution.
  </Accordion>

  <Accordion title="Possession">
    When you take physical possession of the property. Usually at closing or the day after, though other arrangements can be negotiated.
  </Accordion>

  <Accordion title="Inclusions and exclusions">
    What transfers with the property (appliances, fixtures, window treatments) and what the seller is keeping. When in doubt, specify in writing.
  </Accordion>
</AccordionGroup>

<Card title="Purchase Contracts" icon="file-contract" href="/service-categories/legal/contracts-and-agreements/purchase-contracts">
  Key terms, standard provisions, and what to review before signing
</Card>

## Contingencies Explained

Contingencies protect you by allowing contract termination if specific conditions aren't met. Your earnest money is typically returned if you terminate under a valid contingency.

| Contingency | What It Protects     | Typical Timeframe |
| ----------- | -------------------- | ----------------- |
| Financing   | Loan denial          | 21-30 days        |
| Inspection  | Property defects     | 7-14 days         |
| Appraisal   | Value shortfall      | Tied to financing |
| Title       | Ownership issues     | Through closing   |
| HOA review  | Association problems | 3-7 days          |

<Card title="Addendums and Contingencies" icon="file-lines" href="/service-categories/legal/contracts-and-agreements/addendums-and-contingencies">
  How contingencies work, when to use them, and what happens when they expire
</Card>

<Warning>
  Contingencies have deadlines. Missing a deadline may waive the protection automatically, even if the underlying issue exists. Track all contingency dates carefully from day one.
</Warning>

## Waiving Contingencies

In competitive markets, buyers feel pressure to waive contingencies to make offers more attractive. Understand what you're giving up before you waive.

<AccordionGroup>
  <Accordion title="Waiving financing contingency">
    If your loan is denied, you may lose your earnest money. Only consider this with unconditional loan approval already in hand.
  </Accordion>

  <Accordion title="Waiving inspection contingency">
    You accept the property as-is with no opportunity to negotiate repairs or terminate based on defects. Consider a [pre-offer inspection](/service-categories/home-inspectors/types-of-inspections) if you're waiving this contingency.
  </Accordion>

  <Accordion title="Waiving appraisal contingency">
    If the property [appraises below purchase price](/service-categories/appraisers/low-appraisals), you must cover the gap with additional cash or lose your earnest money. Only consider with significant cash reserves.
  </Accordion>
</AccordionGroup>

<Note>
  Shortening contingency timelines is often safer than waiving entirely. A 7-day inspection contingency still protects you. No contingency means no protection.
</Note>

## What "Under Contract" Means

When the seller accepts your offer, the property is "under contract." This creates legally binding obligations for both parties.

**What happens immediately:**

* Contract is executed (signed by all parties)
* Title company opens escrow
* Earnest money deadline begins
* Contingency timelines start
* Lender begins processing your loan

<AccordionGroup>
  <Accordion title="Your obligations">
    - Deposit earnest money within deadline (typically 3 business days)
    - Schedule inspections within contingency period
    - Provide documentation to lender promptly
    - Meet all contingency deadlines
    - Close on the agreed date
  </Accordion>

  <Accordion title="Seller's obligations">
    * Remove property from active marketing
    * Provide agreed disclosures
    * Maintain property condition
    * Complete agreed repairs
    * Transfer ownership at closing
  </Accordion>
</AccordionGroup>

## The 3-Day Earnest Money Deadline

Once your offer is accepted, earnest money is typically due within 3 business days. This is often the tightest deadline in the entire transaction.

**Why this matters:**

Missing the earnest money deadline may constitute breach of contract. The seller could terminate and pursue legal remedies.

**What you need to have ready:**

* [Title company](/service-categories/title-escrow/comparing-title-companies) selected and contact information confirmed
* Wire transfer process understood
* Verification phone number for wire instructions (looked up independently, not from email)
* Funds available and ready to transfer

<Warning>
  This is why you research title companies before writing an offer. You don't have time to compare options, verify security protocols, and check [wire fraud insurance](/service-categories/title-escrow/wire-fraud-protection) after you're already under contract.
</Warning>

## Where Earnest Money Goes

Earnest money is deposited into an escrow account held by the title company. Neither you nor the seller can access these funds until the contract terms authorize release.

<AccordionGroup>
  <Accordion title="If the transaction closes">
    Earnest money applies toward your funds due at closing. It reduces the amount you bring to the closing table.
  </Accordion>

  <Accordion title="If you terminate under a valid contingency">
    Earnest money is returned to you. The specific contingency language determines the process.
  </Accordion>

  <Accordion title="If you breach the contract">
    The seller may be entitled to keep your earnest money as damages. Contract language determines how disputes are resolved.
  </Accordion>
</AccordionGroup>

<Card title="Earnest Money" icon="money-bill" href="/service-categories/title-escrow/earnest-money">
  Complete guide to protecting your deposit and understanding when it's at risk
</Card>

## Negotiation Basics

Offers often go through negotiation before reaching agreement.

<AccordionGroup>
  <Accordion title="Seller responses to your offer">
    * **Accept** - Contract is executed as written
    * **Reject** - No deal; you can submit a new offer or move on
    * **Counter** - Seller proposes different terms; you can accept, reject, or counter back
  </Accordion>

  <Accordion title="Common negotiation points">
    * Purchase price
    * Closing date
    * Earnest money amount
    * Contingency terms
    * Included items
    * Repair requests
    * Seller concessions toward closing costs
  </Accordion>

  <Accordion title="Competitive market considerations">
    Multiple buyers may submit offers simultaneously. Your agent advises on strategy, but ultimately you decide how aggressive to be and which protections to keep or sacrifice.
  </Accordion>
</AccordionGroup>

## After Acceptance

Once the contract is executed, move quickly on these items:

<Steps>
  <Step title="Wire earnest money">
    Contact title company to confirm [wire instructions by phone](/service-categories/title-escrow/wire-fraud-protection). Verify using a number you look up independently. Wire funds within the deadline.
  </Step>

  <Step title="Schedule inspection">
    Contact your [inspector](/service-categories/home-inspectors/comparing-inspectors) immediately to schedule within the contingency window. Don't wait until the last days.
  </Step>

  <Step title="Provide lender documentation">
    Your lender needs the signed contract to begin processing. Provide any additional documents requested promptly.
  </Step>

  <Step title="Review disclosures">
    Seller provides [property disclosures](/service-categories/legal/consumer-protections/required-disclosures). Review carefully and ask questions about anything unclear.
  </Step>

  <Step title="Track deadlines">
    Create a calendar of all contingency deadlines. Missing one can cost you money or protection.
  </Step>
</Steps>

***

## Learn More

<CardGroup cols={2}>
  <Card title="Purchase Contracts" icon="file-contract" href="/service-categories/legal/contracts-and-agreements/purchase-contracts">
    Key terms, provisions, and what to review
  </Card>

  <Card title="Contingencies & Addendums" icon="file-lines" href="/service-categories/legal/contracts-and-agreements/addendums-and-contingencies">
    How contingencies work and when to use them
  </Card>

  <Card title="Earnest Money" icon="money-bill" href="/service-categories/title-escrow/earnest-money">
    Protecting your deposit and understanding when it's at risk
  </Card>

  <Card title="Title & Escrow Overview" icon="shield-check" href="/service-categories/title-escrow/overview">
    Understanding who holds your funds and manages closing
  </Card>
</CardGroup>

***

<Card title="Next: Due Diligence" icon="arrow-right" href="/learn/first-time-home-buyer/due-diligence">
  Inspections and appraisals that protect you before you commit
</Card>