How to make an offer
When it comes time to make an offer you will require current market information and assistance in drafting your offer. You will need a Real Estate Professional.
A Real Estate Professional will communicate your Offer to Purchase to the seller, or the seller's representative, on your behalf. Sometimes there may be more than one offer on a property at the same time. A Real Estate Professional can guide you through this process.
Firm Offer to Purchase
Usually preferable to the seller because it means buyers are prepared to purchase the home without any conditions.
Conditional Offer to Purchase
Usually means there are one or more conditions on the purchase, such as "subject to home inspection", "subject to financing" or "subject to sale of buyer's existing home". The home is not sold until all the conditions have been met.
Acceptance of Offer
An Offer to Purchase is presented to a seller who may accept the offer, reject it, or submit a counter-offer. The counter-offer may be in reference to the price, closing date, or any number of variables. Offers can go back and forth until both parties have agreed to terms or either side ends the negotiations.
Elements of an Offer
Price: Depending on local market conditions, your opinion of value and market information provided by your real estate professional may indicate to offer something different than the asking price.
Deposit: The deposit shows an act of good faith and will be applied against the purchase price of the home when the property closes. Your sales representative will advise you of an appropriate amount.
Terms: Includes the total price offered and the financing details. You may arrange your own financing or ask to assume the seller’s mortgage, especially if it has an attractive mortgage rate.
Conditions: These might include “subject to home inspection”, “subject to you obtaining financing” or “subject to you selling your property”
Inclusions: Depending on the local market conditions these may include appliances, light fixtures or window coverings, these also my be considered as exclusions
Closing: Generally the day that the title of the property is legally transferred and the transaction of funds finalized unless and assist you in drafting your offer – a legal document which specifies the terms and conditions of your offer