Elements of an offer

At this point, we have seen a number of properties, and you have selected the perfect home for you. This is a very exciting time! Let’s have a look at the different elements of the offer.

Purchase Price

One-on-one, with the guidance of Dominique Milne, we’ll review recent comparable sales so we can determine the market value of the property. This will also help us determine the price we should offer. The factors that may affect the offer price are:

  • Location of the property;
  • Condition of the home;
  • Current market conditions;
  • Multiple offers – expect to pay more if there is more than one offer on the property.
Deposit

Once you have decided on what price to offer, we need to determine the amount of the deposit. This amount is similar to a security deposit. It needs to be large enough to show the Seller that you are serious. This amount will be applied towards the purchase price, on closing. The deposit cheque will be cashed upon acceptance of the offer, but should something come up within the time period of the conditions, the deposit will be returned to you in full.

Completion Date

The date you put in the offer should be the best move-in date based on your current situation. You need to take into consideration the closing date on your current home, or the end of your lease. Remember vacation dates also!

Title Search Date

This is also called the Requisition Date. This is the deadline for your lawyer to determine that you are buying a home free and clear of any liens and encumbrances.

Conditions

You will likely want to include conditions such as Financing, Building Inspection and Status Certificate Review (if buying a condominium).

Financing

Chances are, you will need to get a mortgage. By now, you should have been pre-approved for one. We should still include this condition, as the lender will need time to have an appraisal done.

Inspection

Once your offer is accepted, you will want to hire a certified home inspector to inspect your future home. Keep in mind that no home in perfect, even a brand new one, and that small maintenance items should not be part of renegotiations. If you are buying a home with a well and/or septic system, you will want to have those components inspected as well. If there is a swimming pool, and weather permits, you should consider having it inspected as well. Dominique Milne will help you understand what to watch out for and guide you towards the right choice.

Chattels and Fixtures Included

You should determine what you will need in terms of appliances, window coverings, etc and look at what has been included and excluded in the listing. Those items are sometimes negotiable.

Before reducing the terms to paper, you will want to put yourself in the Seller’s shows and imagine how they will react to everything you are about to put in your offer. Remember that verbal promises are not legally enforceable when it comes to the sale of real estate, so it is important to ensure all negotiations are done in writing.