> The Offer
For some, this is a stressful experience. After all, you and
the seller may not be able to come to an agreement and you won't
get your dream home. There are eight
basic elements to an offer and there are various
offer strategies that you may want to use during your negotiations.
Also visit Making the offer
When you've found your home, you will make a formal, written
offer to purchase. This is a legally binding contract outlining
what you will give (a combination of price and terms) in exchange
for the home. Your associate will probably use a pre-printed form
covering all of the legalities and will modify it to cover what
you want to offer.
Remember, everything is negotiable. You should ask for what you
want, but keep in mind what you're willing to give up. Your RE/MAX
associate will put everything in writing. Of course, the more
contingencies in your offer, the less attractive it will be to
the vendor. In a buyers' market, that's OK.
The vendor may counter your contingency with an escape clause.
For example, the vendor may wish to continue showing the house
and if they receive another offer, you'll have the option of backing
out or removing your contingency.
> The Offer Can be Firm or Conditional
A firm offer means that you are prepared to purchase the home
without any conditions. If the offer is accepted, the home is
yours. Although a firm offer to purchase is usually preferable
to the seller, if you are unable to close you will lose your deposit
and may get sued. Take time to confirm your financing and to think
twice about the investment.
A conditional offer to purchase means that you have placed one
or more conditions on the purchase, such as subject to home inspection,
financing or sale of your existing home. The home is not sold
until all the conditions have been met.
> Acceptance of the Offer
Your offer to purchase will be presented as soon as possible.
After the seller has reviewed the offer, it may be accepted as
is, rejected, or returned with a counter offer.
The counter-offer may be in reference to the price, the closing
date or any number of variables. The offers can go back and forth
until both parties have agreed or one ends the negotiations.
It is best to know your absolute upper limit before you begin
negotiations, so that in the heat of the moment you don't end
up with a home you really can't afford.
