Buying
What is actually in an offer
Price is one line. These are the other terms that decide whether your offer gets taken seriously.
Buyers focus on price because price is the number everyone talks about. Sellers read the whole page, and several of the other lines can matter more than the last few thousand dollars.
Price
What you are offering. It should come from comparable sales, not from a percentage of the asking price. The asking price is somebody's opinion. Recent sales are evidence.
Deposit
Usually delivered within 24 hours of acceptance. A larger deposit signals you are serious and financially able, because you are putting real money in trust before you have any of your conditions answered. It is one of the cheapest ways to strengthen an offer, and it is money that goes toward your purchase either way.
Irrevocability
How long the seller has to answer before your offer expires. Typically 24 hours, sometimes 48, shorter in a competitive situation. Short irrevocability creates pressure. It also means if they need to reach someone who is travelling, you may have expired for reasons that had nothing to do with your offer.
Closing date
Free negotiating room that most buyers ignore. A seller who has already bought their next place has a date they need. Matching it can be worth more to them than money. Ask what they want before you guess.
Conditions
Covered properly in conditions are protections, not obstacles. Ask for the time you will actually use.
Inclusions and exclusions
Appliances, light fixtures, window coverings, the shed, the TV mount. Write down what you expect to be there. Almost every unpleasant surprise on final walkthrough traces back to a line nobody wrote.
Rental items
Hot water tank, furnace, air conditioner, water softener, alarm system. You are taking over these contracts. Know what they cost per month and what the buyout is, because an assumed rental can be worth thousands over the years you own the house.
Written by Mike Elsey, Broker, Royal LePage Real Estate Associates, Brokerage. General information about the process in Ontario, not legal, financial, tax, insurance or inspection advice.
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