Preparing An Offer
by Silvio Azzinnari

Once you have found a home which best suits your budget and your needs, the next step is to have an offer to purchase drawn up.

HINT:  Be certain to review the offer and ask any questions you might have before signing.

Although no two offers are the same, here are some typical points found in most offers.

1. Your offering price.
2. Legal address of the property.
3. Amount of deposit and who is to hold it.
4. Any conditions that are attached to the sale of the property (for example: home    inspection, financing, sale of your existing home, etc.)
5. A list of all items included and excluded in the sale (e.g. fridge, stove, window coverings, lights, etc.)
6. Disclosure of Representation - which agent works for who.
7. Irrevocable Date—the time period for which your offer is valid, usually a day or two.
8. Closing Date—the day chosen for the transaction to be completed.

ESTABLISHING AN OFFERING PRICE
This decision will depend on a few factors.  Your realtor will provide you with information regarding recent sales of comparable home and also what other homes are currently available in that particular neighbourhood.  Similar homes sell for similar prices.  With this information you can generally determine what the fair market value of the property would be.  Once you are in the ballpark, unique selling feature such as a pool, family room, appliances, landscaping and the overall condition of the property can pinpoint it even further.

HINT:  Most Vendors set their asking price higher than what they are willing to accept, so be prepared to bargain.

Before a final agreement is reached, you will likely go through a series of negotiations over price and other aspects of the offer with the Seller.   When an offer is presented there are three possible responses.  1) Acceptance of the offer.  2) Rejection of the offer.  3) Countering of the offer.  Most offers tend to go back and forth a few times until an agreement is reached or until one party withdraws from the negotiations.

NOTE:  It’s important to realize that when you make any changes to an offer, it nullifies and voids the offer just made to you