Buying your first home is one of the most exciting milestones of your life — but the contract sitting in front of you is not just paperwork. It is a legally binding agreement that can either protect you completely, or expose you to serious financial risk.
What Is a Home Purchase Contract?
A home purchase contract — formally called a purchase and sale agreement — is a legal document between you and the seller that defines every condition of the transaction. Once both parties sign, each is legally bound to follow through.
A standard contract covers the agreed purchase price, your earnest money deposit, contingencies (the conditions that must be met), critical deadlines, items included in the sale, and all closing terms and cost allocations.
⚠ What First-Time Home Buyers Should Watch Out For
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Watch Out 01
Contingencies: Your Built-In Safety Net
Contingencies are protective clauses that allow you to exit the deal — or renegotiate — if certain conditions aren't met. They are your most powerful tool as a buyer.
The three you must understand:
- Home Inspection Contingency — lets you inspect the property and negotiate repairs or walk away if significant issues are found
- Financing Contingency — protects your deposit if your mortgage loan is not approved
- Appraisal Contingency — ensures you're not overpaying if the home appraises below the agreed price
In competitive markets, sellers may push you to waive these protections. A skilled agent will help you structure offers that remain competitive without leaving you exposed.
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Watch Out 02
Earnest Money Deposit
Your earnest money deposit signals to the seller that you are a serious buyer. It is held in escrow and typically applied toward your purchase at closing.
Before you sign, confirm three things:
- How much is required (typically 1–3% of the purchase price in Massachusetts)
- The exact deadline for submission
- The precise conditions under which it is refundable
Missing a deadline or backing out outside of a contingency window can result in forfeiting this deposit entirely.
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Watch Out 03
Strict Timelines & Deadlines
Real estate contracts operate on firm, non-negotiable timelines. Missing even one deadline can void your contingency protections and put your deposit at risk.
- Inspection period window
- Financing approval deadline
- Appraisal completion date
- Final closing date
Your agent's job is to track every single one of these and keep you on schedule.
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Watch Out 04
What's Actually Included in the Sale
Not everything you saw during your showings automatically transfers with the home. If it isn't written in the contract, don't assume it stays.
- Kitchen appliances (refrigerator, dishwasher, range)
- Washer and dryer
- Light fixtures and ceiling fans
- Window treatments and blinds
Ensure every item you expect to remain is explicitly listed in the purchase and sale agreement before you sign.
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Watch Out 05
Repairs, Credits & Negotiations
After the inspection, you may have the right to request repairs, a price reduction, or closing cost credits. But there's one critical rule:
All agreements must be documented in writing within the contract. Verbal agreements are completely unenforceable.
- Seller-completed repairs before closing
- Purchase price reduction to reflect discovered issues
- Dollar credits applied to your closing costs
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Watch Out 06
Understanding Your Full Closing Costs
Your out-of-pocket expense at closing goes well beyond your down payment. Plan for 2–5% of the purchase price in additional costs.
- Loan origination and lender fees
- Title search and title insurance
- Escrow and attorney fees
- Prepaid property taxes and homeowners insurance
On a $500,000 home, that's $10,000–$25,000 in closing costs on top of your down payment. Ask your lender for a Loan Estimate early in the process.
How a ZRG Agent Protects Your Best Interests
Clear Guidance Through Complex Terms
Contracts are written in legal language. Your agent translates everything into plain terms so you can make fully informed decisions.
Strategic Offer Structuring
In competitive markets, the smartest offer wins — not always the highest. A skilled ZRG agent helps you stay competitive while minimizing your risk.
Deadline Management
From deposits to inspections to financing, your agent tracks every deadline — protecting both your money and your position in the deal.
Skilled Negotiation
Whether it's repair credits, price reductions, or closing costs, your agent advocates relentlessly for your best outcome.
Identifying Red Flags Early
An experienced agent spots unfavorable contract terms and hidden risks before you commit — saving you from costly mistakes.
🧠 Pro Tips for First-Time Home Buyers
- Take your time reviewing every line of the contract — don't let anyone rush you
- Ask questions about anything you don't fully understand
- Never rely on verbal agreements — get everything in writing
- Avoid making rushed decisions under competitive pressure
- Work with experienced professionals you genuinely trust
Frequently Asked Questions
Do I have to waive my inspection to win a bidding war?
No. You don't have to waive your inspection to be competitive. A skilled real estate agent can help you structure offers that appeal to sellers — through pre-approval strength, escalation clauses, or flexible closing timelines — without removing your most important protection. Waiving an inspection can expose you to tens of thousands of dollars in unexpected repairs.
Is earnest money refundable if I change my mind?
It depends on the specific conditions in your contract. If you exit the deal within a valid contingency period (inspection, financing, or appraisal), your earnest money is typically returned in full. If you back out outside of a contingency window without cause, you may forfeit the deposit entirely. This is why every contingency deadline matters.
How much are closing costs for a first-time buyer in Massachusetts?
Most buyers in Massachusetts can expect closing costs between 2% and 5% of the purchase price. On a $550,000 home, that's roughly $11,000–$27,500 on top of your down payment. Costs include lender fees, title insurance, attorney fees, prepaid taxes, and homeowners insurance. Your lender is required to provide a Loan Estimate within three business days of receiving your application.
What happens if I miss a contract deadline?
Missing a contract deadline can void your contingency protections, leaving you unable to exit the deal without losing your earnest money deposit. In some cases, it can put the entire transaction at risk. Your real estate agent is responsible for tracking and managing every deadline on your behalf.
Winning the Bidding War
Without Waiving Your Inspection
Join us on May 9th for a free, expert-led seminar designed to give first-time buyers a real competitive edge — without unnecessary risk.
🏡 Winning the Bidding War (Without Waiving Your Inspection)
May 9, 2026 · 12:00 PM – 2:00 PM
530 Washington St, Suite #3
Stoughton, MA
Hosted by Rudy Dimanche & Camille Sanders, Realtors
Vasilis Axios — Loan Officer, Freehold Mortgage
Samantha Tripp, Esq. — Associate Attorney, Leo At Law
Seats are limited — registration via Eventbrite
