7 Terms to Watch for in a Purchase Contract
1. The closing date. See if the date the buyer wants to take title is
reasonable for you.
2. Date of possession. See if the date the buyer wants to move in is
reasonable for you.
3. The earnest money. Look for the largest earnest-money deposit
possible; since it is forfeited if the buyer backs out, a large deposit is
usually a good indication of a sincere buyer.
4. Fixtures and personal property. Check the list of items that the buyer
expects to remain with the property and be sure it’s acceptable.
5. Repairs. Determine what the requested repairs will cost and whether
you’re willing to do the work or would rather lower the price by that
amount.
6. Contingencies. See what other factors the buyer wants met before the
contract is final—inspections, selling a home, obtaining a mortgage,
review of the contract by an attorney. Set time limits on contingencies
so that they won’t drag on and keep your sale from becoming final.
7. The contract expiration date. See how long you have to make a decision
on the offer.
