Real Estate  Professionals

Real Estate Professionals

Sales Representatives

Royal LePage Vision Realty

Mobile:
709-693-6463
Office:
709-747-4701
Email Me
Real Estate  Professionals

Real Estate Professionals

Sales Representatives

Royal LePage Vision Realty

Mobile:
709-693-6463
Office:
709-747-4701
Email Me

Elements Of An Offer To Purchase

 

Putting it in writing for the seller

 

After much deliberation, you have finally selected the home of your dreams. What now? Do you knock on the seller’s door with a sack full of cash and demand the keys?

Not quite. Buying real estate isn’t like buying a pack of gum down at the variety store. There is a process to be followed, and the first step is to make a purchase offer.

Your real estate agent, working in close consultation with you, will prepare the Offer to Purchase. The Offer to Purchase is an important legal document that says you agree to buy the seller’s house (often contingent on certain conditions).

This process is not as straightforward as it sounds. You want the seller’s house, but to reach that point, you must be mindful of the seller’s reaction to any conditions you demand in the offer.

 

Types of home purchase offers

 

Your offer can be firm (without conditions), or conditional:

  • Firm offer to purchase a home: 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 house is yours.

Conditional offer to purchase a home: This means that you have placed one or more conditions on the purchase. Common conditions make the completion of the sale subject to a home inspection & subject to financing approval or subject to the sale of the buyer's existing home. The house is not sold until all the conditions have been met.

As this purchase may well constitute the biggest outlay of dollars in your lifetime, you don’t want reckless disregard for detail to turn a real estate investment into a financial setback. Both you and the seller will want to take every precaution, stating any contingencies clearly, to avoid the possibility of legal issues later on.

 

The factors included in the offer

 

When you’re making an offer to buy a home, there are six main elements to consider:

  1. Price
    Deciding how much to offer is one of the most difficult judgments to make. Offer too little (or offer too late), and you stand the chance of losing the house to another bidder (particularly in a seller's market). On the other hand, nobody wants to pay more for something than it's worth. Your Realtor can help you understand the local housing market by showing you what comparable homes are selling for, helping you assess the condition of the house, and determining the type of competition you may face from other buyers.

     
  2. Deposit
    The deposit shows your good faith and will be applied against the purchase of the house when the sale closes. Your Real Estate Agent can advise you on an appropriate amount (typically $1,000 here in Metro or above for an execuitve property) new home construction varies upon builders and conditions of new home purchase.

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

     
  4. Conditions
    Conditions are items that must be completed or fulfilled prior to the closing (such as a home inspectionobtaining financing, or selling your existing house). List anything you want the seller to pay for – carpet cleaning, warranties and any repairs or credits for damages, and so on.

     
  5. Inclusions and exclusions
    Your offer may be contingent on certain items being either included or excluded in the sale. These items can be anything from appliances to decorative items, such as window coverings or mirrors (these are called chattels in legalese).

     
  6. Closing day
    In Canadian real estate transactions, the closing day is generally the day the title of the property is legally transferred and the transaction of funds finalized, unless otherwise specified.

Careful attention to detail and consideration of the seller’s point of view should result in a happy outcome: your confident stride through the front door of your new house.

Courtesy of: http://www.royallepage.ca/en/realestateguide/buying/offer/purchase-offer.aspx

Elements Of An Offer To Purchase

Courtesy of: http://www.royallepage.ca/en/realestateguide/buying/offer/purchase-offer.aspx

709-693-6463

  

709-747-4701