Natasha Shaw

You've found a great home, and you're ready to make the leap and buy. When it comes time to make an offer you will require current market information and assistance in drafting your offer.

To do this, you'll need a qualified real estate agent. They will communicate your Offer to Purchase to the seller or the seller’s representative on your behalf. Sometimes there may be more than one offer on a property at the same time, and your real estate agent can help you through this process.

There are two types of offers:

• Firm Offer to Purchase - Usually preferable to the seller because it means buyers are prepared to purchase the home without any conditions.
• Conditional Offer to Purchase - Usually means there are one or more conditions on the purchase, such as “subject to home inspection,” “subject to financing,” or “subject to sale of buyer’s existing home.” The home is not sold until all the conditions have been met.

Then what?

• Acceptance of Offer - An Offer to Purchase is presented to a seller who may accept the offer, reject it, or submit a counter-offer. The counter-offer may be in reference to the price, closing date, or any number of variables. Offers can go back and forth until both parties have agreed to terms or either side ends the negotiations.

Once your offer has been accepted, closing procedures begin, and you're one step closer to moving into your new home.

TIP: For your consideration, you may have your offer contain the following Conditions for your peace of mind:

• (Optional) Subject to Financing [it’s best to allow yourself a minimum 10-14 business days if your pre-approval isn’t fully completed.]
• (Optional) Subject to Home Inspection [this is at your own cost.  Price ranges from $200 - $500+] 
• (Optional) Subject to Appraisal [this is at your own cost.  Price ranges from $200 to $400 for condos/single family dwellings] 
• (Optional) Subject to Sale of Principle Residence [this may be a reasonable condition for you but maybe not so much for the seller, however you may require to sell your home to afford the financing on the new purchase - ask me about Bridge Financing options]
• (Optional) Subject to Lawyer Approval [we used to always use this condition when purchasing investment property because it protects your interest]

*Bear in mind that you may not want to use all of these conditions all at once.  If you are in a bidding situation where there may be more than 1 buyer interested in the purchase of the property, the Seller may opt for the Offer that comes with less conditions even if the offer is for less money.  The seller wants the peace of mind that they have achieved a sale so they can move on.  Typically it's understandable to put some provisions in place like the Financing condition if you haven't provided yourself enough time to obtain your pre-approval.   

Related Topic: Understanding the Offer