The Basics of Making an offer

When searching for your dream home, you were just that – a dreamer. Now that you’re writing an offer, you need to be a businessperson. You need to approach this process with a cool head and a realistic perspective of your market. The three basic components of an offer are price, terms, and contingencies (or “conditions” in Canada).

Price – the right price to offer must fairly reflect the true market value of the home you want to buy. Your agent’s market research will guide this decision.
Terms – the other financial and timing factors that will be included in the offer.

Terms fall under six basic categories in a real estate offer:

  1. Schedule – a schedule of events that has to happen before closing.
  2. Conveyances – the items that stay with the house when the sellers leave.
  3. Commission – the real estate commission or fee, for both the agent who works with the seller and the agents who works with the buyer.
  4. Closing costs – it’s standard for buyers to pay their closing costs, but if you want to roll the costs into the loan, you need to write that into the contract.
  5. Home warranty – this covers repairs or replacement of appliances and major systems. You may ask the seller to pay for this.
  6. Earnest money – this protects the sellers from the possibility of your unexpectedly pulling of the deal and makes a statement about the seriousness of your offer.

Need to buy homes in Hamilton Mill? Give Scott Lacy a call today!

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