The Major Elements of an Offer

Terms and conditions for any Agreement of Purchase and Sale /Offer MUST be tailored to the facts and circumstances of the Parties in any transaction.

It is extremely important at time of offer preparation that we discuss all of your concerns, needs and wants at the time of offer preparation, so that they can be addressed in the offer. Remember, part of my job as your representative is to taylor-make the offer to suit your needs.

ELEMENTS OF AN OFFER:

1. Price
Depending on the local market conditions, this is your opinion of value based on market information I provide to you. The price you offer may be different from the seller’s asking price. The market value of a home will vary, depending on market conditions. In a Seller’s market (where there are few listed properties and lots of buyers), buyers can expect to have to pay a bit more. In a Buyer’s market (where there are many properties listed for sale and not too many buyers), buyers can expect to pay less. A balanced market is the middle ground, and buyers can expect that to be reflected in the price they will pay to purchase a home.

2. Deposit
The deposit shows your good faith and will be applied against the purchase of the home when the sale closes. I can advise you on an appropriate amount. Typically, your deposit cheque is due within 24 hours of the having an accepted offer, and cannot be post-dated. It will remain in trust until your closing, and then by applied to the purchase price.

3. Terms
Includes the total price offered, the financing details, chattels in good working order, right to revisit prior to closing, survey etc. 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”, “subject to you selling your property” “subject to obtaining home insurance”, “subject to Seller property Information Statement” etc.

5. Inclusions and Exclusions
‘Included In’ and ‘Excluded From’ the purchase price. These might include appliances and certain fixtures or decorative items, such as window coverings or mirrors.

6. Irrevocable.

Time the Seller has to accept the Buyer’s offer and in which time the Buyer cannot retract their offer. Note: If Seller is countering the Buyer’s offer, it is the same as a new offer from the Seller to the Buyer and can be done after the expiration of the Buyer’s irrevocable time.

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