Making an Offer

When you want to purchase a property, it is always best to be represented by a real estate professional to protect you as a buyer. There is no cost to you a s a buyer to use an agent, and the information, protection and guidance will ensure you are well informed and protected during the process. 

 

A Real Estate Professional will protect you and advise you of different strategies depending on the circumstances and what conditions are necessary when placing your offer.  They will then present and negotiate your offer on your behalf. 

Firm to Offer Purchase

This is a very aggressive approach to purchasing a property and is usually done when the buyer is facing competition or is negotiating an excellent price.  It is advised to make sure you have done your homework ahead of time to know the condition of the property and make sure you have the finances secured for closing.

Conditional Offer to Purchase

Your offer to purchase may be condtional on a set of terms that must be met before the sale of the property is firm. The buyer can walk away from the purchase with their deposit if the conditions are not met within the given time period. Once the conditions are met, the buyer is obligated to purchase the home for the set out terms.

Acceptance of Offer

When all the terms of the offer are satisfactory to both the buyer and seller, than the offer is accepted by both parties. Usually there are negotiations that go back and forth until both parties can agree on the the terms of the offer.

Making an Offer

 

There are six key components to the elements of an offer. 
They are:


Price

The price you offer is dependent on market value of the home, market conditions, condition of the property and any competition in purchasing the property. The price you offer is usually different than what the seller has listed the property for. It is up to your real estate professional to negotiate with the seller to come to a mutally agreed upon price for the property.

Deposit 

Your deposit demonstrates your seriousness and good will as a buyer. It is the amount that will be applied against the purchase in order to secure the property. Depending on the property and listing price, I will advise of an appropriate ammount as your Real Estate representative.

Elements of an Offer Explained

Inclusions and Exclusions

Usually in the listing, a seller will disclose what items that are not included with the purchase of the property. A general rule of thumb is anything that is fixed to the wall is included unless otherwise indicated. However just to be clear, appliances, window coverings, light fixtures should all be clearly stated so there is no misunderstanding to either buyer or seller.

Terms

As a buyer, you indicate the price you are offering, when you wish to take possession, under what names you wish to take title and how long your offer is valid for the sellers to make their decision. 

Conditions

Conditions are set to protect you as a buyer and must be met before the sale is firm. This would include such conditions such as financing approval to ensure you are able to mortgage the property, a  home inspection if neccessary, and possibly the sale of your current property. When purchasing a condo unit, a Status Certificate condition should always be included to determine the financial stability of the building.

Closing or Possession Date

The day in which the property is legally transferred to your name and the funds are transfered between buyer and seller.  This day may not fall on the weekend or on a Holiday.

 

 

If you would like more information on making an offer, or for more information on buying a home please do not hesitate to call or simply complete the form below.