I found a house, and my agent is preparing the offer. What should I be looking for before signing?

The offer to purchase is the first step in negotiating the terms under which you will be buying your new home. Once you have decided on the terms, (price, closing date, personal property if any,) it will be presented to the seller. he has three options, he can accept the offer as is making no changes, this then ratifies the contract, he can counter, which means he will cross out the terms that he does not agree with, sending you his terms, (if you accept his terms you initial the changes which then makes it a ratified contract) or you can counter again with some changes) or he can reject the offer entirely. When all parties are in agreement and all signatures and initials in place you have a legal binding contract.