When you’ve found the right home within your budget and finished your due diligence, it’s time to put in an offer. Now is the time to sit down with your realtor and work out the details of your offer.
Consider how much the property is worth to you both as an investment and as a place to live. Talk with your realtor about market conditions; is it a buyer's or seller's market? You might be able to come in under the asking price or you might even need to offer more, depending on market conditions and the demand for the property.
Chattels are things like appliances, furniture, and decorations that do not require a tool to detach from the property. If you want to keep any of these items, be sure to list them explicitly in your offer.
Closing date is the day on which you take possession. If you have a home of your own to sell, you typically want the closing date to be on or before the closing date for your sale to avoid being without a place to live in the interim.
A strong deposit signals to the seller that you're serious about your offer and demonstrates your commitment to seeing the deal through. Different areas have their own customs when it comes to deposit amounts but they are generally in the 5-20% range.
Offer Expiry / Irrevocable Date
Your offer will include an expiry date after which you are no longer required to honor it. Until such a time that the expiry date passes or the seller declines your offer, you are obligated to honor it. How long are you willing to wait for the seller to make their decision? Typically the irrevocable time is 24-72 hours.
If you have not been approved for a mortgage on the specific property, if you want to have an inspection done, or if you need to sell your existing home before you can afford the next, you can include these caveats in your offer as conditions. Unless all conditions are met or waived by the buyer before their respective deadlines, the deal is considered null and void and the deposit is returned. If your offer is accepted, the clock starts ticking on satisfying these conditions. Save yourself the stress by being organized before submitting an offer