
What is the Agreement of Sale?
The Agreement of Sale (AOS) is the document that, when filled out and signed, becomes your formal offer to buy a home in Pennsylvania. It is 14 pages long. There is a lot of very fine print. There are also several blank spots that may be or must be filled in. It stipulates everything that buyer and seller are bound to do and how they need to be done.
Why Should My Agent Walk Me Through It Before I Make an Offer?
The boiler plate language of the AOS explains the deadlines, the responsibilities of each party in the transaction, details regarding the transfer of the property as well as how and where monies are held and distributed, legal ramifications of any violations and more. It’s vital to understand your obligations, risks as well as what you are entitled to in any real estate purchase before you even think about the specific house you might bid on. Clarity on those rules will color your choices as you “fill in the blanks” of an offer.
The parts of the offer that require decisions (the “blanks”) are what will make your offer unique, vs. other offers. In order to write your best offer (meaning one that has the best chance of being accepted while not pushing you beyond your financial or risk tolerance boundaries), it’s key to understand how, for example, the settlement date, expiration date and mortgage contingency can be made most appealing to a seller. It’s equally important to know how to protect yourself and reduce your risk. There are multiple ways to craft an offer and every single “blank” is a potential strategy point. You should understand how each one should be used in your specific scenario.
In our marketplace, most houses receiving multiple offers where buyers rarely have the chance to negotiate (you often must submit your highest and best offer and the seller just chooses one). Additionally, you frequently have very little time to put an offer together before it’s due or before someone else submits one that is accepted. So the stakes are high, you may have no opportunity to negotiate and you will likely be pressed for time. Does that scenario sound like one where it doesn’t matter if you’ve never seen that 14 page document before?
What Do I Risk if I Haven’t Reviewed it Prior to an Offer?
Can you and your agent put together an offer if you have not previously seen the AOS? Of course. The difference is that you may not fully understand the deadlines, what happens if you miss them, who is responsible for what, how/why you are entitled to the return of deposit monies, what happens if you can’t settle on time…..If you are not clear about those things, you could inadvertently being putting yourself at much greater risk.
If your agent hasn’t had time to discuss the strategy with you (like how the mortgage contingency and potential appraisal gap work, how the amount and timing of your deposit affects the strength of your offer and how to mitigate an inspection contingency, for example), you will be in a weaker position as far as making your best offer.
Preparation is Power.
Think of it like using a tool for the first time for an important project instead of practicing with it ahead of time. If you’ve had the chance to review the document and ask questions, you will have time to mentally process all the different ways you can write the offer. Then, when the time comes to submit one, you will understand how different choices affect your level of risk as well as appeal more (or less) to a seller. Then you can confidently, with the help of your agent, know that whatever offer you submit is truly your best offer. Make sure you have your agent walk you through the AOS early in the process. You will feel more in control if you know that you understand it.
If you are relocating to the Philadelphia/Main Line area, please go to my blog page and search for posts using the relocation tag. Contact me to discuss your Philadelphia area relocation! jen@jenniferlebow.com/610 308-5973








