Elements of an Offer Explained
When you have found the right home, your domatorTEAM agent will help you submit a written offer to purchase the house. The offer outlines the price you are willing to pay and the terms and conditions under which you make an offer.
There are 6 main components to the elements of a Toronto Real Estate offer:
- Price
Depending on the conditions in the local market, the overall Toronto real estate market and the information gathered by your domatorTEAM agentm the price you offer may be different from the seller's asking price.
- Deposit
Your deposit gives the seller assurance that your are serious about buying the home and it shows good faith. Your deposit is applied against the purchase of the home when the sale closes. Your domatorTEAM agent will help you determine the appropriate ammount of your deposit.
- Terms
The terms of your offer include the price and financing details. Your domatorTEAM agent will help you arrange your own financing or you can choose to assume the seller's mortgage, especially if it has an attractive interest rate.
- Conditions
Conditions are the requirement you set out for the sale to take place according to the terms of the offer. Conditions might include "subject to home inspection", "subject to you obtaining financing", or "subject to you selling your property". Your domatorTEAM agent will be happy to advise you on the conditions you should include in your offer.
- Inclusions and Exclusions
Inclusions and exclusions are a list of items in the home that are or not included in the sale. Some examples are appliances and certain fixtures or decorative items, such as window coverings or mirrors. The Inclusions and Exclusions section of your offer would indicate whether these items would stay with the house or be removed by the seller.
- Closing or Possession Date
Generally, the closing or possession date is the day the title of the property is legally transferred and the transaction of funds finalized. On this date, your financing must be in place, terms must be met and all other conditions of your offer satisfied or the transaction may not take place.
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