The Buying Process
Making An Offer
Your offer will contain the standard details plus any conditions that are important to you, and become a legally binding contract.
Your offer will include:
• date of offer;
• date and time offer expires;
• full legal names of both buyers and sellers;
• amount of your deposit, to be held in trust, and forming part of the purchase price;
• the total dollar amount of your offer, the sale price;
• amount of your cash down payment and details about your financing that will form the remainder of your purchase price;
• your desired completion, and possession dates;
• a list of conditions that must be met before the sale can occur (these are known as “subject clauses");
• a list of chattels you wish to remain with the home and will be included with the sale price such as appliances, drapes, and blinds;
• your signature.
Possible Subject Clauses
• satisfactory building inspection;
• arrangement of financing;
• sale of present home;
* It is your responsibility to use your best efforts to remove subject clauses in a reasonable amount of time. Your subject clauses should be escape clauses that will release you from the contract. You want your subject clauses to be as objective as possible. The amount of subject clauses and the nature of them may make your offer appear weak.
Fixtures vs. Chattels
A fixture stays with the property when it is sold, and chattels will be taken with the owner to his/her new residence. It may not always be clear if there is something you want to stay with the home such as appliances or window coverings. They must be noted in the offer to ensure they are included in the purchase price.
A Seller’s Three Options
1) Accept the offer as it stands.
If the seller accepts the offer without making any changes, a legally binding contract has been formed.
2) Reject the offer.
3) Counter the offer.
If the seller makes any changes to your offer, it’s considered a counter offer. You now have the same three options as the seller: accept, reject, or counter. Counter offers may continue back and forth until an agreement has been reached.
* If the counter offer is not acceptable to you and/or you have changed your mind about wanting to purchase, you may reject the counter offer and walk away. The seller cannot enforce your original offer.