Making an Offer

Once you've identified a home you love, it's time to make an offer. In both CT and NY, offers are non-binding. This means that the seller and buyer can back out before contracts are signed. In New York, offers are typically made verbally via email, but in Connecticut many agents use what is called a "binder" (despite the fact that it's non-binding), which is signed by the parties and sets forth the terms of the deal which are to be later memorialized by the attorneys when drafting contracts. Below are a few things you may include in your offer.

  • Financing Terms: The offer should list the purchase price and you should indicate whether you are purchasing the property with cash or with a mortgage (and whether there will be a financing contingency). You can also include the amount of the down payment (i.e. 20%).
  • Contingencies: Many offers will include contingencies that allow the buyer to back out of the deal if a certain condition is not met. Common contingencies include a mortgage contingency and an inspection contingency. A mortgage contingency requires that the buyer be approved for a loan prior to closing and that the home appraises for at least the contract price. An inspection contingency gives the buyer the right to conduct a home inspection prior to signing contracts. It allows the buyer to back out of the deal or negotiate repairs based on the findings of a professional home inspector. You should be clear in the type of inspections you would like to conduct (building, septic, termite, etc.).
  • Closing Date: A lender typically requires 45-60 days after signed contracts to close, but a cash deal can close much sooner.

Anticipated Costs

There are a variety of costs that you will have to pay throughout the home buying process. It's important to understand these costs ahead of time so that you can plan and budget for them.


  • Inspection Costs: The costs of inspections can vary depending on the number of tests performed, but you can expect to spend around $1,000 for inspections. Note that this is a sunk cost if you decide to back out of the deal after you discover any issues from the inspection.
  • Attorneys Fees: You are required to hire an attorney to prepare and/or review contracts in both Connecticut and New York. Fees will vary depending on the state and firm, but expect to pay somewhere between $1,500 and $2,500.
  • Lender Fees: Many lenders charge points or fees at closing. This is something you should ask your lender in one of your first conversations with them.
  • Appraisal Cost: Your lender will require an appraisal of the home to make sure that it's worth what you are paying for it. This will generally cost a few hundred dollars which will be paid at closing.
  • Survey Cost: In New York, a survey is required for closing. If the seller does not have an updated survey, the buyer may be required to purchase one. The cost may range from $800 - $1,500 depending on property size and location. Surveys are not required to close in CT.
  • Title Fees: Your attorney will order a title report to make sure that there are no liens or defects against the property and the cost of this report will be paid at closing.
  • Closing Costs: These vary greatly from NY to CT, but will generally include prepaid taxes, prepaid insurance, and in New York, mortgage and mansion tax. The mortgage tax requires that buyer pays 1.05% of the loan amount. The mansion tax of 1% is payable by buyer on sales above $1 million.

Signing Contracts

If inspections are deemed satisfactory and you proceed with the deal, the seller's attorney will draft a contract. Your attorney will schedule a time to review the contract with you and handle any requested revisions. Once the contract is finalized, it will be sent to you for signature. At this point, you will give a 10% contract deposit made payable to the seller’s attorney who holds it in an escrow account until the closing. A fully executed contract will be provided to you for submission to your lender for the mortgage process.