Making an Offer
When you have done the work of finding your ideal, dream property, now comes the point of making an offer. This can be an exciting part, but it is just as important as any other step in the process. That means making the right decision.
Once you have placed placed your bid, it is legally binding. You can make an offer by presenting the vendor with an offer to purchase. You can also do this via an Agreement of Purchase and Sale. Note that your presentation should include the following information:
- Property details, including the name(s) of the seller(s) and the buyer(s)
- The sum being offered for the property
- Mortgage details and deposit amount (lawyer will finalize the mortgage paperwork)
- Possession date
- Expiration date at which it becomes void
- A list of items which are to be left in the house (fixtures and fittings) as agreed verbally between seller and buyer
- A statement of adjustment that confirms the price, balance of the deposit, and any other adjustments.
Making a Conditional Offer
If you have doubts as a buyer, you can also make a conditional offer. Making offers of this type offers protection to the buyer if they can’t get a mortgage or the property fails the home inspection.
Keep in mind that an offer isn’t necessarily automatically accepted. The seller has the ability to counteroffer if they aren’t happy with what you have presented. They may also counter if they don’t like the closing date, changes to the offer price, or any other aspect of your bid.
As a buyer, you can also negotiate a counteroffer. Keep your budget in mind, though. No matter how much you want the property, a counteroffer that is too high can make repaying the mortgage difficult. Most of all, do not act on emotion and pitchwhat you can afford.
Keep in mind that your deposit – which is usually 10 percent of the purchase price – is also required when you make an offer. The deposit is then held by the seller’s lawyer or agent and will be deducted from the purchase price if it is accepted.
If you change your mind after the offer has been accepted, you default on your deposit. Should the seller reject the offer, your deposit is then returned to you.
If you have any questions or want a guiding hand throughout the process, call Super Brokers today. We can help you to make the entire process smoother than ever.