The Major Elements of an Offer
- 1. Price
Depending on the local market conditions, your opinion of value and market information provided by your Royal LePage Real Estate Professional, the price you offer may be different from the seller's asking price.
- 2. Deposit
The deposit shows your good faith and will be applied against the purchase of the home when the sale closes. Your Royal LePage Real Estate Professional can advise you on an appropriate amount.
- 3. Terms
Includes 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
These might include "subject to home inspection", "subject to you obtaining financing", or "subject to you selling your property".
- 5. Inclusions and Exclusions
These might include appliances and certain fixtures or decorative items, such as window coverings or mirrors.
- 6. Closing or Possession Date
Generally, the day the title of the property is legally transferred and the transaction of funds finalized unless otherwise specified (except in Manitoba and Quebec). Note: In British Columbia the Possession Date is legally 1 to 3 days after closing.
How to Make An Offer
- When it comes time to make an offer, your Royal LePage Real Estate Professional can provide current market information and will assist you in drafting your offer.
- Your Royal LePage Real Estate Professional will communicate the offer, sometimes
known as an 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. Your Royal LePage Real Estate Professional can guide you through
*Offer to Purchase : a legal document which specified the terms and conditions of your offer to purchase the home.
- The offer can be firm or conditional.
Firm Offer to Purchase: 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: means that you have placed one or more conditions on the purchase, such as "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.