The offer is much more complicated than simply coming up with a price and saying, "This is what I’ll pay." Because of the huge dollar amounts involved, both you and the seller want to build in protections and contingencies to protect your investment and limit your risk.

In the offer, you include not only the price you are willing to pay, but also any other details of the purchase. This includes how you intend to finance the home, your down payment, who pays what closing costs, what inspections are performed, timetables, whether personal property is included in the purchase, terms of cancellation, any repairs you want performed, which professional services will be used, when you get physical possession of the property, and how to settle disputes should they occur.

Buying a home is a major event for both parties. It will affect your finances more than any other previous purchase or investment. The seller makes plans based on your offer that affect his or her finances, too. In the time it takes to write the offer, both you and the seller are making decision that will affect the rest of your lives.