You've found the home you would like to purchase, now what? Here is where your realtor's expertise really comes into play. With his or her in-depth knowledge of market conditions an offer will be put together which will include:
Price: depending on the local market conditions, your opinion of value and market information provided by your agent, the price you offer may be different from the seller's asking price.
Deposit: the deposit shows your good faith and will be applied against the purchase price of the home when the sale closes. This is typically around 5% of the purchase price.
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.
Conditions/Subjects: these will include "subject to home inspection", "subject to obtaining financing" and a few others depending on the home.
Inclusions and Exclusions: these might include appliances and certain fixtures or decorative items, such as window coverings or mirrors.
Closing and Possession Date: generally closing date and possession date are 1-2 days apart. This gives the banks and lawyers time to transfer funds and title to your name.
How to Make an Offer
• When it comes time to make an offer, your agent will provide current market information and will draft up an offer.
• Your agent will communicate your offer 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 agent will can guide you through this process.
• Your offer to purchase will be presented as soon as possible. The seller may accept the offer, reject it, or, in most cases, 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.
