Write The Offer – Negotiate Best Terms – Satisfy Conditions
We have determined the property best suited for you and with the information we have collected up to this point we are prepared to draft an offer in writing to submit to the sellers.
We will go through the offer step by step in person but for now here are some items we will focus on. Price, Deposit, Closing Date, Inclusions, Terms and Conditions.
Price: In deciding what price to start the offer at we want to be aggressive without insulting the sellers. It is important that in the discussions we have with the seller they are thinking with their heads and not their hearts. I will negotiate hard for you to obtain the best price possible.
Deposit: When you submit an offer there is an expectation from the seller of a deposit. An acceptable deposit is typically determined by the purchase price of the property and amount of time between the offer and closing date. Your deposit is not at risk until you satisfy and remove all of your conditions. If your home inspection fails or financing falls through you get this money back.
Closing Date:This is the day you take possession of your new home. Often times this date can affect value for a buyer or seller and I can use this to leverage your position in negotiations.
Inclusions: The offer outlines a list of included items in the purchase. Anything that is “attached” to the property is considered part of the sale. To guarantee that items that aren’t “attached” directly to the property we include them in the offer to ensure they are in the property when you take possession. Most often this list includes appliances, but can be anything agreed upon by the buyer and seller, a hot tub or shed would be a good example.
Terms: A term can be used as a function to have the buyer or seller complete a specific item or provide access to the property for specific reasons. An example of a term that I always use is ” Seller agrees to allow buyer access to the property up to 24 hours prior to closing for the purpose of a walk-through”.There are a number of other reasons we may include a term in the contract depending on certain circumstances. I will make you aware if we should have additional terms included in the contract if required.
Conditions: To protect you as a buyer we put the proper conditions in place as part of the agreement depending on the type of property you are pursuing. Below are examples of some common conditions we may implement.
- Financing Condition: To satisfy this condition the bank will perform an appraisal for the home to make sure the value is enough to justify lending a buyer mortgage funds. Also, at this time the lender will verify your income and debts to ensure you are a suitable candidate for a loan.
- Property Inspection Condition: I always suggest having a property inspection performed on any property. The cost is anywhere between $450-$1000 depending on the company and level of inspection you require. The property inspection is subject to your approval as a buyer and if there are any deficiencies that are determined by the inspection it is up to you as a buyer if you wish to continue the transaction.
- Condominium Document Review Condition: If the property you are considering is a condominium it is important to obtain all of the condo documents and have them professionally reviewed. The cost for this is $425 and could save you thousands. Meeting minutes, financial statements, insurance certificate, condo plan and reserve fund reports are just some of the documents that are available through the condo board to have reviewed.
I have a number of Preferred Service Providers that are valuable resources we can use to help satisfy your conditions.
It should take 7-10 business days to do the due diligence and satisfy all of the conditions. I will guide you through the different process’ as we move through them.
With the offer written, the best terms negotiated and all conditions satisfied it is time to prepare for THE CLOSING.
