Real estate contracts can feel overwhelming. Between timelines, legal language, and important financial decisions, it is easy for buyers and sellers to feel unsure about what everything really means.

The good news is you do not have to figure it out alone. At The Star Home Team, our job is to help you understand every step so you can move forward with confidence, clarity, and less stress.

Here are five important real estate contract terms that every buyer and seller should understand before signing on the dotted line.

Contingencies: Your Built-In Protection

Contingencies are conditions that must be met before a sale becomes final. Common examples include home inspection, financing approval, appraisal, or the sale of a buyer’s current home.

These clauses protect both buyers and sellers. If something important does not happen as expected, contingencies allow room to renegotiate or step away without unnecessary risk.

Our team helps you understand how to balance protection with competitiveness so your offer stays strong while still protecting your investment.

Earnest Money Deposit: Showing Serious Intent

An earnest money deposit is a good-faith payment that shows the buyer is committed to the purchase. It is typically around one to three percent of the purchase price, depending on the market.

We guide our clients on what makes sense for today’s market conditions so your offer stands out without unnecessary risk.

Purchase Price and Financing Terms

This part of the contract outlines the agreed price and how the home will be financed. It includes details like loan type, down payment, timelines, and approval deadlines.

Financing terms can make or break a deal. Our team works closely with trusted lenders and helps you understand what these timelines mean so you can avoid surprises later in the process.

Closing Date and Possession

The closing date is when ownership officially transfers, but possession determines when the buyer can actually move in.

Misunderstandings around possession can cause stress for both buyers and sellers. Whether it is immediate move-in or a temporary rent-back agreement, we help make sure expectations are clear from the start.

Repair Requests and Credits

After the home inspection, buyers and sellers often negotiate repairs or credits. This is one of the most important stages of a transaction because it can impact both the timeline and final terms.

Our team helps clients focus on what truly matters. Instead of getting stuck on minor cosmetic issues, we guide negotiations toward safety, structure, and long-term value.

Why Working With the Right Team Matters

Understanding contract terms helps you:

✔ Avoid costly surprises
✔ Negotiate with confidence
✔ Protect your investment
✔ Reduce stress during the process

But knowledge alone is not enough. Having a team that explains the details, watches the deadlines, and advocates for your goals is what truly makes the difference.

At The Star Home Team, we believe real estate is not just about buying or selling a home. It is about helping people make informed decisions and feel supported every step of the way.

Our Team Can Help

Whether you are buying your first home, selling your current one, or simply want to understand the market better, our team is here to guide you through the details so you never feel overwhelmed.

Call The Star Home Team at Better Homes and Gardens Real Estate Star Homes today at 847-548-2625. We are ready to help you move forward with confidence.