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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 included.

     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.