Receiving an offer and negotiating

There are six major elements of an offer that need to be agreed upon by both the selling and buying parties:

Price

The price offered depends on the market and the buyers, but generally it is different from the asking price.

Deposit

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.

Terms

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.

Conditions

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).