Savvy Buyers™

Called consideration in legal terms, the deposit is placed in the seller representation's escrow account and applied toward the purchase at closing. In Greater Boston, the customary initial deposit is $1,000. Increasing it signals motivation and can differentiate your offer in a competitive field. Funds need to be available immediately — typically transferred by ACH through a secure platform within 24 hours of acceptance. This is not the P&S deposit, which is a separate and significantly larger amount (typically 5% of the purchase price).

The Offer to Purchase is a binding legal contract the moment it is executed by both parties. In Massachusetts, an accepted offer is not merely a letter of intent — it creates real legal obligations. The offer defines price, deposit amounts, proposed dates, contingencies, and expiration time. Because Massachusetts is an attorney state, the Purchase and Sales Agreement that follows will take legal precedence and govern the transaction from that point forward. That said, the offer should be treated with the seriousness of any binding contract.

Offer expiration is typically 24 hours, though it can be shorter or longer depending on the situation. It serves two purposes: it accommodates the seller's timeline for reviewing offers (particularly when all offers are due simultaneously at a deadline), and it can create urgency. A well-timed short expiration signals seriousness and avoids a waiting game. Your agent will advise on the right approach for each property and situation.

The P&S is the formal legal contract prepared by the attorneys on both sides of the transaction. It supersedes the Offer to Purchase and governs every aspect of the sale through closing. It outlines final terms, seller representations, all contingency deadlines, deed type, title requirements, and closing conditions. Signed typically 10 to 14 business days after offer acceptance. The P&S deposit — typically 5% of the purchase price less the initial deposit — is due at execution.

A buyer's right to a home inspection is preserved under Massachusetts Consumer Protection Law Chapter 93A. A seller cannot knowingly accept an offer from a buyer who intends to waive their right to an inspection — doing so exposes the seller and listing agent to significant legal liability. This protection prevents buyers from being pressured into waiving inspections as a competitive strategy. The inspection contingency covers a general home inspection and, depending on how the contract is written, may also include separate inspections for pest and wood-destroying insects, radon, lead paint, water quality, and septic systems. Each may be included within the same contingency window or scheduled separately.

The mortgage contingency is a contractual protection for buyers financing their purchase. It requires the buyer to: submit a formal loan application by a specified date (typically one business day after P&S execution), receive a written mortgage commitment from their lender by a deadline, and satisfy the lender's appraisal requirement. If the buyer cannot obtain financing commitment by the deadline and the contingency is in place, they can typically terminate and recover their deposit. If the contingency is waived and financing falls through, the deposit is at risk of forfeiture. Waiving this contingency is a significant financial exposure that should only be done with full understanding of the risk.

When a buyer obtains a mortgage, the lender orders an independent appraisal of the property. If the appraised value comes in below the agreed purchase price, it creates an appraisal gap. The lender will only lend against the appraised value. Options include: the buyer covers the difference out of pocket (appraisal gap coverage), the parties renegotiate the price, or the transaction unwinds. In competitive markets where buyers are offering above list price, appraisal gap risk is real and worth discussing before you write an offer significantly above asking.

The closing date in an offer is not just a logistical detail — it can meaningfully affect how a seller evaluates competing offers. A date that aligns with the seller's needs (moving into new construction, replacing housing, or meeting a tax or estate deadline) can make your offer stand out even when another offer is higher. Before submitting an offer, it is worth asking your agent to learn as much as possible about the seller's preferred timeline. Flexibility here costs you nothing and can win you the house.

An escalation clause automatically increases your offer above a competing offer by a set increment, up to a maximum cap you define. Example: "I offer $900,000 and will beat any bona fide competing offer by $5,000, up to a maximum of $950,000." Escalation clauses can be effective, but they reveal your ceiling to the seller and can add complexity. They work best when multiple offers are expected but the ceiling of competition is uncertain. Discuss the pros and cons with Mike before including one in your offer.