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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. I will prepare this for you on a pre-printed form covering all of the
legalities and will modify it to cover what you want to offer. If you're not sure of all
you want in the offer don't worry, I'll help guide you through the various terms and conditions.
Remember, everything is negotiable. You should ask for what you want, but keep in mind what
you're willing to give up. I 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 may be OK an if we are in competition it may not.
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.
When we meet, I will discuss this with you in more detail.
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.
Back To Buyer Resources
Forward: Eight Basic Elements Of An Offer
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