Overview
For some, this is a stressful experience. After all, you and the
seller may not be able to come to an agreement and you won't get
your dream home. There are eight basic elements to an offer and
there are various offer strategies that you may want to use during
your negotiations.
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. Your associate will probably use a pre-printed form covering
all of the legalities and will modify it to cover what you want to offer.
Remember, everything is negotiable. You should ask for what you want,
but keep in mind what you're willing to give up. Your RE/MAX associate
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 OK.
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.
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.
