Real Estate Q & A: Making an Offer

When it comes time to make an offer, your Real Estate Professional can provide current market information and will assist you in drafting your offer.

Your agent 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.

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

Usually 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 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.

There are six key components to the elements of an offer. They are:

PRICE

Depending on the local market conditions and information provided by your agent, the price you offer may be different from the seller’s price.

DEPOSIT

Your deposit shows good faith and will be applied against the purchase of the home when the sale closes. Your Real Estate Professional can advise you on an appropriate amount.

TERMS

Includes the total price offered and the financing details. You arrange your own financing or ask to assume the seller’s mortgage, especially if it has an attractive interest rate.

CONDITIONS

These might include “subject to home inspection”, “subject to you obtaining financing”, or “subject to you selling your property”.

INCLUSIONS AND EXCLUSIONS

These might include appliances and certain fixtures or decorative items, such as window coverings or mirrors. These items would remain in the house.

CLOSING OR POSSESSION DATE

Generally, the day the title of the property is legally transferred and the transaction of funds finalized.

Chestnut Park Real Estate Ltd., Brokerage

This entry was posted on May 21, 2016 by Jim and Iris

Words of Appreciation

“Thank you for the memorable sales and closing experience of finding the cottage of our dreams. A perfect fit for our needs.”

I & E – Lake Muskoka cottage buyers

“Jim and Iris Gardiner were both amazing to deal with. A truly professional team. They shared a great deal of knowledge with us and really shed important light regarding potential Island Cottage ownership – all the pros and cons. Not only did they sell our existing cottage in 24 hours for much higher than our asking price they helped us find our new slice of paradise on Lake Muskoka in a very tight market. We are thrilled with our new cottage and love being on Eilean Gowan Island! We would highly recommend either Jim or Iris for any of your Real Estate needs!”

J & D – Sold on Echo Lake and bought on Lake Muskoka

Jim did me a favor 20 years ago and I wanted to return the favor – I approached him and Iris at the cottage show and, even though I already had a real estate agent, he recommended a cottage property that I purchased and enjoyed for those 20 years. I therefore, tracked him down and had him be our agent in selling that property. Our priority was to find new owners that would be friendly and fit in well with the neighbors and Jim and Iris found the perfect couple Jim and Iris made the entire sale most enjoyable. The experience was so smooth and enjoyable that the sellers, the buyers and the real estate agents all got together for supper the following summer at our old cottage!

K & L – Lake Muskoka

It is with great pleasure and appreciation for me to recommend the services of Jim Gardiner and the entire Gardiner Team. Jim’s awareness of community by-laws and market related activities extracted incremental value for us when we were finalizing the purchasing agreement.

JB – Mirror Lake

Just want to tell you that you did a fine job for me on the cottage sale on Lake Muskoka. The sale has removed a huge load from my shoulders. Iris, just a note to thank you again. Money is in the bank!!!!!!

BJ – Lake Muskoka