Getting Ready to Buy Part 2

Shopping for your new home is exciting but once you have decided which property you want to buy you need to make some important decisions; how much will you offer, when would you like to take possession, how much of a deposit do you have available, what conditions do you need and are there any other matters that need to be addresses in the contract?
Paramount is the availability of a deposit to accompany to offer. This amount is deposited into the seller’s Brokerages trust account no later than 2 business days after receipt of the deposit, which general goes with the offer or a day or so afterwards. The size of the deposit can influence the seller’s decision to work with an offer. It is security for them that you are going to complete the transaction once you have removed all of your conditions. If you are unable to remove your conditions you do get the deposit beck however if you waive all of your conditions you would loose the deposit to the seller in the event you failed to complete the transaction.
Your offer price should be carefully considered. If you have done your homework and you are working with an experienced Real Estate professional then you likely know what the property is worth and what you should pay for it. Your REALTOR® will be your negotiator and advocate. You always expect to get a counter offer, it is rare that an offer is accepted as written however at some point you have to concede satisfaction with the offer and that will likely mean a bit of give and take on the part of both buyer and seller. The possession date is one of these points of give and take and often has as much significance to the seller and buyer as the price. Be prepared to give a little to get what you want.
When you went through the home prior to making an offer you should have made a list of chattels (unattached goods) that you want to include in the offer. These include appliances, window coverings, sheds, hot tubs, even area rugs or sometimes specific furniture. This list needs to be very specific so be diligent.
You will need to talk to your REALTOR® about various conditions that may be necessary. In the case of the majority of residential real estate contracts these conditions are fulfilled prior to a specific date within 1-2 weeks of when the contract is initially written. Conditions may include; financing, home inspection, review of the condominium documents, lawyer’s review… It is important to remember conditions need to have a specific objective to be performed to the satisfaction of a specific party to the transaction prior to a specific date. Terms on the other hand are more along the lines of special requests or instructions and may include things like; the seller will have the carpet professionally cleaned prior to possession, or the alarm system contract is to be terminated at the seller expense prior to possession. Your recourse in the event these specific terms are not met is varied and you should consult your lawyer if you have concerns about the enforceability of the contracts terms.
Next week Making the offer subject to the sale of your home…