Understanding the offer
Prior to showing your home and after a thorough evaluation with a Real Estate Professional,
you should have the following: a realistic idea of the price; how low
you will settle; what conditions you will accept; and what terms would
With this information you are prepared. When an offer is presented,
you will be able to compare it to your initial guidelines. Your Real Estate Professional
will evaluate these offers and hopefully, arrive at one that comes closest
to your objectives.
At the same time however, your Real Estate Professional will likely exercise some leveraging
power with any other negotiable items. A Real Estate Professional works on your behalf,
considering all the factors, you as a buyer, and the seller, to work at
an agreement that is satisfactory for both parties. It comes down to persuasion
and negotiation. Your Real Estate Professional has specialized training in
this important area.
Evaluating the offer
An interested buyer will present an offer to your Real Estate Professional through his
or her agent. Your agent will discuss the offer with you, ensuring you
understand all aspects. The offer is a legally binding contract which
contains the following elements:
- The names of the potential purchaser.
- Your name.
- Property description
- Conditions of purchase including:
- closing date
- conditions, easements, caveats
- home inspection
- An irrevocable date (you have until this date to accept or sign
back a counter offer).
- Mortgage details (such as assumable mortgage, seller’s buyback
or other arrangements)
Keep in mind that the purchase price is not the final price you will
receive. That is because you will have additional fees to cover from
the sale of the home including:
- real estate agent
- bank (for the balance of your mortgage and for any prepayment or discharge
- taxes (if there are any outstanding)
You and your agent should thoroughly review every detail. If there is
anything you do not understand, ask!
Before you accept and sign the offer, it is a good idea to have your
lawyer review the offer. This way, you can be confident nothing has been
missed, everything is legally accurate and your interests are protected.
(see additional article - Seek legal representation)
Accepting the offer
When you are satisfied with the offer, you will want to accept it.
To secure this contract, your Real Estate Professional will ask the buyer for a deposit.
Your agent will hold the deposit. Upon closing, the deposit will be applied
to the commission owed.