Office: 165 Pretoria Avenue, Ottawa ON. K1S 1X1
Once you’ve found the home you’re interested in, it’s time to make an offer. Deciding what to offer is one of the most difficult decisions to make. Offer too little and you stand a chance of losing the house (particularly in a seller’s market). On the other hand, nobody wants to pay more for something than it’s worth.
Your REALTOR can help you enormously by showing you what comparable houses are selling for, helping you assess the condition of the house, and judging the type of competition you may face. Once you have decided on the price you are prepared to offer, the REALTOR will draft the offer and explain the details to you.
Your Royal LePage REALTOR will communicate the offer, sometimes known as an Offer to Purchase (a legal document specifying the offers terms and conditions) to the seller, or the seller’s representative, on your behalf.
The offer can be firm or conditional.
Firm Offer to Purchase: usually preferable to the seller, because it means that you are prepared to purchase the home without any conditions. If the offer is accepted, the home is yours.
Conditional Offer to Purchase: means that you have placed one or more conditions on the purchase, such as subject to home inspection, subject to financing, or subject to the sale of the buyer’s existing home. The home is not sold until all the conditions have been met.
When you’re making an offer to buy a home, there are six main elements to consider:
Once your offer to purchase has been drafted, it will be presented to the seller as soon as possible. The seller can accept your offer, reject it, or make a counter offer.
Acceptance – An accepted offer means the seller has agreed to all the terms and conditions exactly as set forth in your offer to purchase.
Rejection – A rejected offer means the seller did not agree with any of the terms and conditions set forth in your offer to purchase.
Counter offer – A counter offer means the seller agrees with some of the terms and conditions of your offer, but not all of them. The seller then makes a counter offer. The counter offer may change the price, the closing date, or add or delete conditions. Once you have received a counter offer you have two choices. You can accept the new terms and conditions or reject them. If you reject them, you can choose to start the whole process over again.
Buying a home is probably the biggest single investment you will make. A home inspection prior to making an offer will protect you and your investment. A qualified home inspector will give your house a thorough examination, checking the heating and cooling system, plumbing and electrical systems, the roof, attic, walls, ceilings, floors, windows, doors, foundation, basement, and visible structures of the home.
The inspector will point out the need for major repairs, identify areas that may need attention in the near future, and explain what maintenance will be necessary to keep the house in good shape. But, it is not all negative. Most inspectors are more than happy to tell you about the home’s good qualities as well. Home inspections are relatively inexpensive considering the size of the investment that you are about to make. Many people consider this a small price to pay for peace of mind.
Your Royal LePage REALTOR can provide you with a list of reputable, qualified home inspectors in your area.
Appraisals – An appraisal is a report containing an estimate of the value of the property. Appraisals are conducted for the purpose of mortgage lending by certified appraisers. The appraisal should not be confused with the home inspection or the market analysis.