What's difference between getting a deal under contract and.....

[Account Closed]

What's difference between getting a deal under contract and and writing an offer?

Are those 2 separated agreements?

[Erik W.]

I call you and say, "I will pay you $100,000 if you will sell me your house."  You say, "No, I want $150,000".  I say, "No, that's more than I can do.  How about $110,000?"  You say, "No, the best I can do is $135,000."  I say, "That doesn't work for me.  Is that the best you can do?"  You say, "Yes, I can't take one dollar below $135,000 because that's how much I owe the bank."  I say, "Thank you for your time, here's my number and I'll follow up in a few weeks."  You say, "Okay, bye."  

We simply had an offer, a few counter-offers, but no contract.

I follow up 2 - 3 weeks later and present my same $110,000 offer.  You says, "Okay, I'll take it.  My job just transferred me to Saskatchewan and I have to be there in 2 days.  No time to mess with this house, plus they gave me up to a $25,000 moving stipend to cover any shortfall with the bank."  You and I meet and you sign the paper.  

We now have a contract.