Making an offer, and what is in it besides the price
Contingencies, earnest money and the terms that decide whether your offer wins.
5 minute read
An offer is not just a number. Several other terms are in it, and in a competitive situation they often matter more than the price.
Earnest money
A deposit showing you are serious, held in escrow and credited towards what you owe at closing. A larger deposit signals commitment.
You generally get it back if you withdraw for a reason your contingencies cover, and generally do not if you simply change your mind. Know which is which before you sign.
Contingencies
Conditions that let you withdraw without losing the deposit. The common ones are financing, appraisal and inspection.
Each is protection for you, and each is a reason for a seller to prefer somebody else offer. Waiving one is a real risk, not a formality, and waiving the financing one when you need financing is how people lose deposits.
Timelines
The contract sets deadlines - inspection, appraisal, loan approval, closing. They are enforceable and they move fast.
Agree a closing date your lender says is realistic. An optimistic date is not a negotiating advantage; it is a deadline you will miss.
What makes an offer strong besides money
A verified preapproval attached. A closing date that suits the seller. Flexibility on possession. Fewer or shorter contingency periods, where you can genuinely accept the risk.
Sellers are choosing the offer most likely to close on time, not always the largest one.
The short version
- Contingencies are your protection. Waiving them is a real risk.
- Agree a closing date your lender calls realistic.
- Certainty often beats price. Sellers want the deal that closes.
This is general information, not advice about your situation. Zoila Moscoso can tell you what applies to you.
Ask about your situationRead next
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What an inspector does, what they cannot see, and how to read a report without panicking.
Closing day, and the walkthrough before it
What to bring, what to check the day before, and when you actually get the keys.