Seven 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.

Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2005. All rights reserved.