Major Elements of an Offer
- Price: The price that is contained in the offer is based on existing market conditions, the opinion of value based on comparisons of similar homes sold provided by your real estate professional and your own feelings. The price you offer may differ from the price asked by the seller
- Deposit: The deposit shows your good faith and will be applied to the purchase price of the home when the sale closes. Your real estate agent will advise you on the normal amount of a deposit in the area.
- Terms: Terms include the total price offered and the nature of the financing. Financing details can include you arranging your own mortgaging or asking the vendor to assume all or part of the financing requirements.
- Conditions: Conditions include requirements that must be met for the transaction to proceed. These might include “Conditional on home inspection”, “Conditional on financing”, “Conditional on well &water inspection”, or “Conditional on the sale of your home”.
- Inclusions and Exclusions: These would list fixtures and chattels that would remain such as refrigerator or stove or the exclusion of a light fixture.
- Closing or Possession date: This is the date the transaction is set to close. It is the day that the title of the property is legally transferred from the seller to the buyer and funds are transferred at the same time.
