How to Make an Offer
When it comes time to make an offer, Leslie K. can provide current market information and will assist you in drafting your offer.
Leslie K. 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. Leslie K. can guide you through this process.
*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.
Acceptance of the Offer
Your Offer to Purchase will be presented as soon as possible. The seller may accept the offer, reject it, 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.
The major elements of an offer
1. Price
Depends on the market and the buyers, but generally, the price offered is different from the asking price.
2. Deposit
The deposit shows the buyer's good faith and will be applied against the purchase price of the home when the sale closes. Leslie K. can advise you on the suitability of the amount of the deposit being offered.
3. Terms
Includes the total price the buyer is offering as well as the financing details. The buyer may be arranging his/her own financing or may ask to assume the existing mortgage if you have an attractive rate.
4. Conditions
These might include "subject to home inspection", "subject to the buyer obtaining financing", or "subject to the sale of the purchaser's 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 transferred to the buyer and funds are received by the seller's lawyer, unless otherwise specified.