Making an offer
There are six major elements of an offer that need to be agreed upon by both the selling and buying parties:
The price offered depends on the market and the buyers, but generally it is different from the asking price.
The deposit shows the buyer’s good faith and will be applied against the purchase price of the home when the sale closes. Your sales representative can advise you on the suitability of the amount of the deposit being offered.
The terms of the offer include the total price the buyer is offering, as well as the financing details. The buyer may be arranging his/her own financing or may ask to assume your existing mortgage if you have an attractive rate.
Common conditions that appear on offers include “subject to home inspection”, “subject to the buyer obtaining financing”, or “subject to the sale of the purchaser’s property.” These are things that must be met or waived in order for the agreement to be firm.
Inclusions and Exclusions
These are items that will be included or excluded from the home. Examples of these may include appliances and certain fixtures or decorative items, such as window coverings or mirrors.
Closing or Possession Date
This is the day the title of the property is transferred to the buyer and funds are received by the seller (unless otherwise specified).
How to make an offer
When it comes time to make an offer, The Brazeau Team will provide you with current market information and will assist you in drafting your offer.
Once it is drafted, The Brazeau Team will communicate your offer (also referred to as the “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. The Brazeau Team will guide you through this process.
Your offer can be firm or conditional.
Firm offer to purchase
This is 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
The majority of offers are conditional. This means that you have placed one or more conditions on the purchase (e.g. “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 the 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 price, the closing date, or any number of variables.
Offers can go back and forth until both parties have agreed or one of you ends the negotiations.