Making 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 Explained
The price you offer reflects your opinion of the value of the house and is determined by the condition of the property and local market factors. You can make any offer you like. It does not have to be the same as the seller’s asking price.
The deposit shows your good faith and will be applied against the purchase of the home when the sale closes. These deposits are normally held in-trust with the Listing Brokerage. Your Royal LePage Sales Representative Realtor can advise you on an appropriate amount.
Terms normally include 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 interest rate. Our in-house Mortgage Representative will be able to provide valuable insight in pre-approvals and detailed Interest Rate Protections Plans for Buyers and Sellers.
Conditions are items that must be completed or fulfilled on or before closing date. Some of the common conditions are: Home Inspection, Arranging suitable Financing, Vacant possession of the property and sale of the Buyers property.
5. Inclusions and Exclusions
Your offer may be contingent on certain items being either included or excluded in the sale. These might include appliances, light fixtures, and decorative items, such as window coverings or mirrors. In condominium transactions it can include mail box keys, remote access to the building and parking garages.
6. Closing or Possession Date
The closing date is generally the day the title of the property is legally transferred and the transaction of funds finalized, unless otherwise specified and agreed to between both Buyers and Sellers.This date is normally on a working business day.