Make a counter offer
If the vendor chooses to make a counter offer (an Offer to Sell ) to the purchaser, revisions are drafted, signed, and presented to the purchaser through the purchaser's agent. In theory, this process of tendering offers back and forth between the parties could continue indefinitely. With good representation, it's more common for buyers and sellers to reach an agreement and to avoid suffering through extended negotiations. Once the terms are mutually acceptable, the "Agreement of Purchase and Sale" is ratified, and it becomes a binding contract between purchaser and vendor.
Pat Laughren and Elspeth Sinclair will advise you through each stage of this process. They will show you how to meet your objectives, and they will help you make sound decisions during this most crucial part of the deal.
The Seven Major Elements of An Offer:
PRICE: The price a purchaser is offering to pay for your property.
DEPOSIT: The deposit will be held in a Trust account. This oftens functions as a symbol of the purchaser's intent, and as such, a larger deposit can help to develop a trust between parties to the deal. If the offer is accepted, this money is applied against the purchase price on closing; if negotiations fail, the deposit will be returned to the purchaser. In most cases, this money will be kept in a trust account, and will be returned to the purchaser, "without interest or penalty". As a purchaser, you can request that this money be deposited into an interest bearing account, and you will be refunded your deposit plus any accrued interest.
TERMS: These are the meat and potatoes of the proposed agreement, and they will cover almost anything imaginable, relating to the property and to the real estate transaction.
CONDITIONS: There may be conditions that need to be met and waived before the deal can close. These might include provisions for the purchaser to complete a home inspection, to arrange financing, to sell the purchaser's existing property, or almost anything else imaginable! If the conditional offer is accepted, the parties are responsible to make every reasonable effort to meet and waive all conditions, and to close the deal.
INCLUSIONS/EXCLUSIONS: Unless otherwise noted in the agreement, fixtures are attached to the house or property, and they are included in the purchase price. Chattles are items that are free-standing, are able to be moved, and they are not included in the purchase price. As you might imagine, this leaves room for misunderstandings. A good agent will identify potential problems, and make sure they are clearly explained in the agreement. To prevent a lot of headaches, nothing should ever be assumed!
CLOSING DATE: The day title is transferred to the new owner and the funds are transferred to the seller. This is the date that the seller must relinquish title and posession of the property, and turn over the keys.
IRREVOCABLE DATE: Every offer has an expiry date, and the party tendering the offer must commit to the terms of their tender until after this expiry date.
HOME INSPECTION:Buying a home is probably the biggest purchase of your life, as well as a very emotional one. Elspeth and Pat always recommend a Home Inspection by a "Qualified Home Inspector" where possible.
The purpose, especially for the first time buyer, is to check the mechanical and structural integrity, but also to learn how the house works. Most inspectors provide a comprehensive report and maintenance checklist to help maintain the house in the future.
In this very active competive market it is sometimes necessary to do a pre-inspection prior to making an offer. This provides detailed information of the house that might influence the offer price as well as enabling the client to make a firm offer should a multiple offer situation arise.
The cost generally runs from $275.00 to $400.00 depending on the size of the house.
