Making an Offer
Making an offer
to purchase a home is the first in a series of events that lead
up to the actual home ownership. Just because you make an offer
does not mean that you will necessarily get the house. Other people
may be making offers and the same time, and it is in the best
interest of the vendor to accept the highest offered bid.
Once you have decided on the home
you would like to purchase, you must present the vendor and his
or her realtor with an Offer to Purchase, also known as an Agreement
of Purchase and Sale. Your Offer to Purchase will
include general information such as both parties' names, the address
of the property and all necessary dates. It will also include
a negotiable purchase price; this being the first price offered
and a list of the contents that are to be sold with the home (the
chattel). All financial details such as the down payment, amortization
and terms, as well as the closing and expiration date are
It is also possible to make a
conditional offer. This offer is only valid if the terms within
in it are agreed upon by the vendor and the seller. Conditional
examples include; financing
approval, a successful home
inspection, any needed repairs, etc.
After an offer has been received
by the vendor, they may make a counter
offer, that is, a change to the terms outlined in your offer.
This cycle may take two or three rounds for completion, though
after your final offer is accepted, it will take additional time
to present the final offer.
When presenting a final Offer
to Purchase, the buyer will have to put a deposit down, ensuring
the purchase of the home. This deposit should not be more than
10% of the home's value and will go directly to the purchase of
the home. If your final offer is rejected, you deposit will be
returned, however, if you cancel your final offer, you could lose
your deposit all together.