You found your dream house. You want to buy it. Now what?

With the help of your Long & Foster sales associate, you submit a signed real estate offer to purchase with the type of financing you desire. Before you sign it, read it carefully and make sure you understand every detail. This will be the sales contract once the seller accepts and signs the offer. Any verbal agreements should be written into the contract. If you plan to have a lawyer represent or advise you, retain one as early as possible.

Your Long & Foster sales associate will take the offer to a “contract presentation” with the home seller and listing broker. The seller will accept it as written, make counter offers on unacceptable aspects, or reject it. You can then accept it, counter-the-counter offer, or reject it. The offer to buy becomes a contract when all parties have initialed every counter and signed the offer.

When you sign the offer to buy, you will also have to show that you are earnest about the purchase by submitting a deposit—appropriately called earnest money.

• Deposit - The amount of earnest money should be clearly stated, plus the amount of money you will be paying at settlement and your sources of financing. A common purchase deposit in many areas is 1-2% of the purchase price, deposited in escrow.
  
  
• Financing Contingency - Be specific about the total loan amount, the date a second or third mortgage is due, and the exact financing terms. Many contracts have an “alternative financing clause” that allows buyers to accept different financing, as long as it does not affect the seller’s net proceeds.
  
  
• Inspection Contingency - You may make the contract contingent on a building inspection report. You will usually have to pay for this inspection, but the peace of mind or detection of a problem is well worth the cost of inspecting.
  
  
• Termites - The contract may require the seller or buyer, depending upon the area, to pay for a termite inspection. The results of this inspection may require payment to remove the infestation and repair any resulting damages. You should get a written report at settlement indicating that the property is free and clear of any active termite infestation. In some areas, well and septic certificates are also required.
  
  
• Personal Property - Specify in writing if items not physically attached to the house are to be included in the sale. These items can include light fixtures, drapery rods, appliances, firewood, and even swimming pool chemicals.
  
  
• Repair Work - Standard contracts of sale require sellers to confirm plumbing, heating, mechanical, and electrical systems are in working order at the time of settlement. You should conduct a pre-settlement walk-through inspection several days before or no later than the day of settlement.
  
  
• Title Attorney or Insurance Company – As the buyer, you have the right to select the title attorney or insurance company who will conduct your settlement. Also, be sure to clear the title company with the lender, whose interests are also involved. Ask your Long & Foster sales associate for a list of our Prestige Partners®, who provide settlement and insurance services throughout our region.
  
  
• Closing and Occupancy Date - Include an arrangement with the seller, such as a daily rent-back agreement, in case they remain in the house past the settlement date.