Determine an affordable price range

Suggest certain home features suitable for the buyer

Arrange a schedule to view homes

Negotiate sales contracts and hold earnest money deposits

Recommend local lenders and home inspectors

A contract consists of an offer and an acceptance. Generally, the purchaser initiates the contract by signing an offer to purchase on a form entitled "Contract of Sale," "Purchase Agreement," "Deposit Receipt," etc., which is often supplied by the real estate agent. This document, when completed with all essential terms and signed by the purchaser, is a formal offer by the purchaser to buy the property on the stated terms. A contract occurs when the seller accepts the offer without qualifications or change by signing the document prior to withdrawal of the offer by the prospective purchaser. A proper sales contract should contain the provisions listed below, but bear in mind that this list is by no means complete. Also remember the sales contract is a legal document containing legal terms which are hard for the average person to understand. Make sure you understand everything in the contract before you sign. Any of its provisions may be vital to your interests.

The best way to protect yourself is to get competent advice from a lawyer or real estate professional in respect to the legal details and the requirements in your area. VA is not authorized to perform this service for veterans.

Remember, when the settlement date arrives, you are committed to the purchase of the property. Thus, the time to decide the terms of sale, raise questions, and establish fair fees is not at the time of settlement, but earlier, when you negotiate with the seller and providers of settlement services. By the time of settlement, any changes in settlement costs and purchase terms may be difficult to negotiate.

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• The sales price should be specified in the contract. For your protection, it is usually best if the contract states that the sales price is not subject to change. Some contracts contain a so-called "escalator" clause which permits the builder to increase the price because of future cost increases. A contract without an "escalator" clause may be best from your point of view, but for many reasons, the builder may not be willing to build without this clause. If the builder insists upon the clause, you should recognize that it will give the builder the right to increase the price, subject to whatever conditions may be stated in your contract. A contract containing this clause, however, should also provide that the purchaser has the option of canceling the contract and receiving a full refund of the deposit if any increased price is not acceptable to the buyer.
• The sales contract should state the amount of cash payment which will be required from you and the manner of financing the balance. Usually the contract will require that you arrange to obtain the loan for the balance due. It should also provide that any cash deposit you make will be refunded to you if you cannot obtain a VA guaranteed loan within a stated period of time.
• The contract should require the seller to transfer the property to you on or before an agreed date. The contract should also specify your right to withdraw and get your deposit back if the property is not transferred on time.