Now that you’ve found a home that meets your needs, the next step is to make an Offer to Purchase (also known as an Agreement of Purchase and Sale).
What goes into an offer?
1. The amount you are willing to offer for the property. Following the advice of your realtor, start as low as is reasonable and leave room for negotiations.
2. Your deposit cheque. With every accepted offer, a deposit cheque is generally required. If the person selling the home rejects your offer, your cheque will be returned to you. If however, you cancel an accepted offer, the vendor will likely keep your deposit.
3. The specific items you want included in the purchase price such as appliances, light fixtures or window coverings.
4. The closing date when you want to take possession of the home.
5. The expiration date and time of your offer. Your offer to purchase has a time limit. If the person selling the home doesn’t accept your offer within the timeframe you’ve indicated, your offer expires and your deposit cheque should be returned to you.
6. Any conditions of the offer such as financing, a land survey or home inspection.
What happens after you make an offer?
After you make your offer, the seller may accept it, reject it or return it with some requested changes. This is known as a counter offer. When you start negotiating, remember what you’ve already determined about how much you can afford and remember your “must haves”. Try not to get caught up in a false sense of urgency or emotion during this process.
What is involved:
• Negotiating your best offer
• Getting mortgage approval /choosing your mortgage (Step 7)
• Meeting with a lawyer
• Getting a home inspection
• Insuring your new property
• Completing the paperwork
• Picking up your keys