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Elements of an Offer

KEY TERMS:

Price: The price a purchaser is willing to pay for the property. It takes into account local market conditions, value and market condition- information provided by your real estate agent.

Deposit: The deposit shows the buyers good faith and will be applied against the purchase price of the home on closing.

Terms: Includes the total price offered and the financing details such as closing dates, inclusions and exclusions, etc.

Conditions: These might include “subject to home inspection”, “subject to you obtaining financing” or “subject to you selling your property”. These must be satisfied in order for the deal to close.

Inclusions & Exclusions: These might include appliances and certain fixtures or decorative items, such as window coverings or mirrors.

Closing Date or Possession: Generally, the day the title of the property is legally transferred and the transaction of funds finalized unless otherwise specified.

THE OFFER PROCESS:

How An Offer Is Made

An offer is a legal document which specifies the terms and conditions to purchase the home. The buyer’s sales representative will communicate the offer to the seller, or the seller’s representative, on their behalf. Sometimes there may be more than one offer made on a property simultaneously. Your sales representative can guide you through this process. An offer can be firm or conditional.

Acceptance of the Offer

A seller may accept, reject 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.

What’s your property worth?