Are you ready to make an offer? You’ve selected the home you want to buy and you’re ready to make an offer…but before you do, there are several things to consider. First, find a trusted sales representative as they are the best source of knowledge when it comes to buying a new home. They will help you make your offer, communicate it to the seller’s agent on your behave and make sure the offer protects your interests.
Once the seller receives your offer they can reject it or present a counter-offer. The counter-offer can then have the seller’s conditions which may differ from yours. The offers can then be countered back by yourself and the seller a number of times, until both parties accepts or rejects.
Let’s take a closer look at the components of an offer to purchase a home…
Types of Home Purchase Offers
Firm offer to Purchase – This type of offer is often preferred by the seller because it means there are no conditions. If the seller is happy with the offer and accepts – the house is yours.
Conditional offer to Purchase – This type of offer means there are conditions that need to be met before the house can be sold. Conditions can include subject to an approved home inspection, subject to financing approval, or subject to the sale of a buyer’s current home.
Factors included in an Offer
Terms – Certain “terms” are included in an offer that specify the total price offered and the financing details. You can seek your own financing, find a mortgage broker, or assume the seller’s mortgage.
Price – The amount you are offering to pay for the home. The price is usually determined by taking a look at the local housing market, what comparable homes are selling for, the condition of the house and also the competition from other buyers. A sales representative can help you decide a purchase price in a timely fashion.
Conditions – As mentioned above, these are items that need to be completed or fulfilled before the closing date. Conditions can include anything from a home inspection to carpet cleaning.
Deposit – A deposit will show gives the seller assurance and shows your serious interest in buying. The deposit will be applied against the purchase of the house when the sale closes. Your sales representative can help you decide the right amount to deposit.
Inclusions and Exclusions – Your offer could include items that are included or excluded in the sale of the home. Examples can be anything from window coverings, decorative items to appliances and hot tubs.
Closing Date – In Ontario the closing day is the day the title of the property is legally transferred from the seller to the buyer and the funds are finalized, unless otherwise specified.
Once the terms of agreed upon you will need a lawyer or notary public, that is familiar with real estate. You can ask friends and family for a trusted lawyer or our RE/MAX Sales Representative can help you find someone you are comfortable working with.
Buying a house can be a stressful and exciting endeavour. Once the paper work is finished, you will have a sense of accomplishment and pride, knowing you have an important investment, your own home!