Once we’ve found the right house, you are ready to move to the next step of the home buying process — to submit an offer to purchase. Our role is to draft the legal document and communicate it to the seller’s representative on your behalf. We will go over all the details with you to make sure all of your requirements are included. We will use our skills and experience as negotiators to make sure you get the best possible deal!
The Major Elements of an Offer
Depending on whether there are multiple offers on the property the price you will offer will be either higher, lower or at the list price.
When we present an offer we will need a deposit cheque, preferably of about 5% of the purchase price, is required. These funds must be available within 24 hours of the offer being accepted. The deposit is placed in a trust account until closing at which time you will instruct your lawyer to release the funds to the seller. You will receive any interest earned on the deposit from the listing brokerage within a week or so after closing.
These are conditions in an offer that must be satisfied before it becomes legally binding. These conditions might include “subject to home inspection”, “subject to the buyer obtaining financing”, or “subject to the buyer obtaining home insurance”.
- Inclusions and Exclusions
These might include appliances, light fixtures, window coverings and anything else the seller agrees to include with the purchase price or it may even be something you will ask the seller, in your offer, to leave behind which the seller has excluded.
- Closing or Possession Date
This is the day in which title of the property is legally transferred to you and the transfer of funds finalized.
A firm offer is one that is submitted with with no conditions. Before you submit a firm offer you must be 100% certain that you want to buy the home and you have done your due diligence, with our guidance, before submitting the offer. This is critical because you can not change your mind once the offer has been accepted by the seller.
A conditional offer is one that is contingent on you conducting a home inspection and being satisfied with the results, getting financing or insurance or even, but not likely, on selling your home before proceeding with a firm deal.