What are the elements of an offer?
When you break down the elements of an offer, you come up with 6 main components:
- Price – This is what you are willing to pay for the property. Depending on local market conditions and info we’ll review prior to an offer, the Price you offer may be different from the sellers asking price.
- Deposit – One of the key purposes of a deposit is to show the seller that there is good faith in your offer. This deposit money is applied against the accepted purchase price on the day of closing.
- Terms – The terms of the offer include the total price, financing details and the remaining terms of the offer like the closing date.
- Conditions – As a buyer, we’ll add appropriate conditions to your offer that allow you to make an informed decision on whether or not the house and your finances are inline with your expectations. Conditions may include “conditional upon a home inspections”, “conditional upon obtaining financing”, “conditional upon sale of your current property”.
- Inclusions and Exclusions – These may include items such as appliances, light fixtures etc.
- Closing and Possession Date – This is the day that you become a new homeowner! Officially it’s the day that “title” to the property is transferred to your name, while at the same time, funds are paid to the seller.
If any part of an offer is unclear, please give me a shout and we’ll go through the process in more detail. Thanks!