You found it. The house. Or the fourplex. Or the duplex. You’re excited. You’re ready to make an offer. And then your agent says something like: “We need to discuss inspections, the appraisal contingency, your earnest money, and make sure you understand the liquidated damages clause.”

And your brain goes blank. You thought this part was just about the price.

Every decision you make when writing the offer affects your position as a buyer, your costs, your rights, your timeline, and whether you get the property at all.

The Inspection Decisions (Yes, There Are Multiple)

You need to decide if you want inspections. And which ones. It’s great when the seller has done all the inspections, but if not, or if you want your own, here are the costs you should know about:

All of these are optional. But as a first-time buyer, you want the home inspection. Depending on the property and its age, you probably want the pest inspection too. And if you’re buying an older home, the sewer lateral is worth the money. Some locations require the sewer lateral to be inspected.

In your offer, you decide the inspection timeline. Standard is 10 to 17 days. This is your window to get the inspections done, review the results, and decide if you want to renegotiate or walk away.

The Financial and Legal Decisions

When you make the offer, you also need to decide on things that will cost you money or affect your rights:

• Home warranty? This protects you from major system failures after you close. Usually $400 to $600 per year. Do you want the seller to pay for year one? In a competitive market, asking for this can weaken your
• Appraisal contingency? This protects you if the appraisal comes back lower than your offer What if there are multiple offers higher than yours?
• Liquidated damages? If you can’t get a loan or don’t close on time, the seller keeps your earnest Read this clause carefully.
• Earnest money amount? Standard is 3 percent of the offer You’ll need to have this ready to transfer when your offer is accepted.

The People You Need (Before You Make the Offer)

Here’s what people don’t talk about: You should already have these three people lined up if you’re attending open houses. Get in touch now.

• Mortgage broker: Do you have one? Do you have a pre-approval letter? Get this locked
• Insurance broker: You’ll need home insurance quotes before Touch base with someone now.
• CPA or tax professional: If you’re buying an investment property, you need tax If it’s a primary residence, you still might need guidance on deductions.

I have trusted referrals for all three. Ask me for them.

The Documentation You Need Right Now

Before you make the offer, get these ready:

• Bank statements showing proof of your down payment funds
• Pre-approval letter from your mortgage broker
• The earnest money check or proof you can transfer immediately

The Documents You Need to Actually Read

In Marin, we can give buyer disclosure packages at the open house. Read them before you make an offer. Sign them and submit with your offer letter. That’s also one contingency that you can waive! This shows you’re prepared and serious. It also means no surprises after you’re under contract.

Get prepared. Know these decisions so you’re not surprised.

IMPORTANT: This reflects my personal experience and opinions. It is NOT financial, tax, legal, or investment advice. You MUST speak with a qualified mortgage broker, CPA, and financial planner before making any real estate decisions. Every situation is different. Market conditions, interest rates, and local practices vary. Past performance does not guarantee future results. Real estate transactions carry risk. Do your research and get professional guidance.