Elements of an Offer Explained
There are six key components to the elements of an offer.
Depending on the local market conditions and information provided by your Real Estate Professional, the price you offer may be different from the seller's listed price. It can often take some negotiation to come up with a price that you and the seller are happy with.
Your deposit shows good faith and will be applied against the purchase of the home when the sale closes. Your Real Estate Professional can advise you on an appropriate amount.
Includes the total price offered and the financing details. You can arrange your own financing or ask to assume the seller's mortgage, especially if it has an attractive interest rate.
A condition is a term or requirement stated in the purchase agreement, which must be met to fulfill to sale of the home. These might include "subject to home inspection", "subject to you obtaining financing", or "subject to you selling your property".
Inclusions and Exclusions
This section includes a list of items that will be included as a part of the home. These might include appliances and certain fixtures or decorative items, such as window coverings or mirrors. These items would remain in the house. If you see something in a home that you really like, make sure you add it to the inclusion section of the Purchase and Sale Agreement. If you're the seller and there are items you don't want included in the sale of your home, make sure you add it to the exclusions.
Closing or Possession Date
Generally, the day the title of the property is legally transferred and the transaction of funds finalized.