MONDAY MOMENTS WITH MICHELLE – The Buying Process: Let’s make an OFFER!

Welcome to Episode 13!

 

Happy New Year 2025!

My apologies for not staying on top of my weekly blogs. I blame the recent Christmas holidays. Going forward, I plan to provide more content-rich posts.

 

Hurray! You have found the home of your dreams! Let’s make an Offer!!

 

This is the ONE that fits your budget and meets almost all your needs and wants and now you want to make it yours. What is the next step? Here comes the paperwork!...

 

I will invite you back to my office to sit down and create an offer. Simply put: an offer is the price that the BUYERS want to pay for the home and the dates they want to own it by. The document is called “Contract of Purchase and Sale” or “CPS”, for short. The first couple of pages of the CPS deal with the information about the contract and definitions of some of the terms in the contract. It also explains about costs to be borne by the BUYER and the SELLER. I will walk you carefully through step-by-step to help you understand the document you are about to sign.

 

The CPS is made between 2 parties: the BUYER(s) and the SELLER(s). It indicates names of the 2 parties, the legal description of the subject property, and the address of the property. At the top of the CPS is the date, the name of the real estate brokerage and agent representing the BUYER, and the MLS# of the property.

 

As your representative, I will have compiled a market analysis of the property you want to offer on. This will show you comparable homes that are currently listed, recently sold and recently expired so that you have a clear indication of the market value of the home you want to offer on. We will discuss what price you will offer, the deposit you are willing to put down to show consideration, what items you want included in the purchase (i.e. appliances, window coverings, etc.) and what items you don’t want.

 

I will also advise you what Conditions Precedent (Subjects) and Terms you should include in your offer.

 

SUBJECT TO:

Property Inspection

Financing

Approving the Title

Approving the Property Disclosure Statement

Legal Advice

Insurance

 

These are the basic subjects that I highly recommend including in your offer. There are others that I may suggest, depending on the property. Terms are generally guarantees made by either the BUYER or the SELLER before the closing date. (i.e. Seller agrees to have the septic tank pumped prior to possession and provide the Buyer with receipt of service.)

 

The next step is to decide on Completion and Possession dates. Completion/Closing dates mean the day that the title and the money changes hands, or when the property is registered to the Buyer in the Land Title Office and the Seller has received the proceeds of the sale. Possession date is when the Buyer can physically move into their new home (usually 2 days after completion).

 

Once the CPS is created and signed, I will let the Seller’s agent know that there is an offer coming their way. For simplicity sake let’s say this is the only offer in play at this time for this particular property, as opposed to multiple offers. If at all possible, I like to present an offer in person with the Sellers and their agent in attendance. This way, I can attach an emotional and personal spin to the offer. I lay out the basics (price & dates) and, with your permission of course, tell the Sellers a bit about you, the Buyer; about your family, where you’re coming from and what you love about the home. I will then leave the Sellers alone with their agent to discuss your offer. If I can’t present an offer in person, I usually suggest that you write the Sellers a letter about yourselves and attach a photo or two. This sometimes works in your favor as well.

 

The Sellers have the option to (1) Accept your offer as presented. (2) Reject your offer outright. (3) Counter your offer. Most often, if your offer is somewhat reasonable, the Sellers will opt to counter. It is my job to facilitate the back and forth negotiations in price, deposit amount, dates, etc. to get you, my buyer, an agreement that works, FOR YOU!

 

Again, for simplicity sake, let’s say your offer/counter-offer has been accepted. Now the real work begins!...

 

Next week, I will describe the next steps to take now that you have an accepted offer. This includes fulfilling the SUBJECTS listed in the CPS. Stay tuned!!

 

Feel free to reach out to me regarding this content or to suggest subjects you would like to learn about.

 

Oh, by the way! I am NEVER too busy for your Referrals, either! Tell your friends!

 

Have a great week! Definitely call me if you want exceptional real estate service!