To make an offer on a property a seller will typically require an earnest money check. This is similar to a deposit. It serves to strengthen your intent to purchase and provides the seller with consideration in the event there is a breech of contract. The amount varies but is usually between 1 and 2% of the purchase price or $3,000 to $20,000. As a buyer you should have this money available in cash or a checking account. In the event the offer is accepted the check is deposited in an escrow account within 1 to 2 business days. This money is held in escrow until closing where it will appear as a credit to you (the buyer) on the settlement statement.

Now you are ready to begin looking for a home. After listening to your wants and needs your agent will show you homes and neighborhoods that fit your criteria. When you find one you like your agent will evaluate the property then draft and submit a written offer accompanied by your pre-approval letter and earnest money check. Assuming both parties negotiate agreeable terms, everyone signs and you are considered “under contract.”

With an executed contract you and your agent begin the process of fulfilling the terms. There are many administrative details that your agent will handle such as monitoring dates and deadlines, reviewing title work and facilitating the loan process. Another important aspect of the transaction is the inspection. This is an opportunity for a buyer to hire a professional inspector to take a close look at the home and its systems to determine its overall condition. If problems exist the buyer may elect to renegotiate or terminate the contract.