Elements of an Offer
Here’s a quick reference to everything you need to know about making an on offer on a property.
Price: Depends on the market and the buyers, but generally, the price offered may be different from the asking price.
Deposit: Shows a buyer’s good faith and will be applied against the purchase price of the home when the sale closes. Your agent can advise you on a suitable amount to offer.
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 your existing mortgage if you have an attractive rate.
Conditions: These might include “subject to home inspection”, “subject to the buyer obtaining financing”, or “subject to the sale of the purchaser’s property”. There are many other conditions your REALTOR® may add to suit your needs not the sellers.
Inclusions and Exclusions: These may include appliances, light fixtures or decorative items, such as window coverings and blinds.
Irrevocable: Time the seller has to accept the buyer’s offer and in which time the buyer cannot retract their offer. Note: If a 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.
Closing or Possession Date: Generally, the day the title of the property is transferred to the buyer and funds are received by the seller, unless otherwise specified.