making an offer

Real Estate Q & A: Making an Offer

When it comes time to make an offer, your Real Estate Professional can provide current market information and will assist you in drafting your offer.

Your agent will communicate the offer, sometimes known as an 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 coming in at the same time.

 

FIRM OFFER TO PURCHASE

Usually preferable to the seller, because it means that you are prepared to purchase the home without any conditions. If the offer is accepted, the home is yours.

 

CONDITIONAL OFFER TO PURCHASE

Usually means that you have placed 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

Your Offer to Purchase will be presented as soon as possible. The seller may accept the offer, reject it, or submit a counter-offer. The counter-offer may be in reference to the price, the closing date, or any number of variables. The offers can go back and forth until both parties have agreed or one of you ends the negotiations.

 

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

 

PRICE

Depending on the local market conditions and information provided by your agent, the price you offer may be different from the seller’s price.

 

DEPOSIT

Your deposit shows good faith and will be applied against the purchase of the home when the sale closes. Your Real Estate Professional can advise you on an appropriate amount.

 

TERMS

Includes the total price offered and the financing details. You arrange your own financing or ask to assume the seller’s mortgage, especially if it has an attractive interest rate.

 

CONDITIONS

These might include “subject to home inspection”, “subject to you obtaining financing”, or “subject to you selling your property”.

 

INCLUSIONS AND EXCLUSIONS

These might include appliances and certain fixtures or decorative items, such as window coverings or mirrors. These items would remain in the house.

 

CLOSING OR POSSESSION DATE

Generally, the day the title of the property is legally transferred and the transaction of funds finalized.

 

Chestnut Park Real Estate Ltd., Brokerage

 

More Real Estate tips from The Chestnut Park Blog

 

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Chestnut Park VP of Operations, Justine Deluce Shares Her Tips on How to Choose the Right Agent

 

Chestnut Park Talks to Brett Sherlock, VP and Head of Christie’s Canada About How the Famed Auction House Can Assist Real Estate Downsizers

 

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