We have offered good value for your property and you have done an amazing job preparing your home for showings. Because of this we have facilitated an offer from an interested buyer.
The offer will outline the terms and conditions for the sale including; Price, Deposit, Closing Date, Inclusions, Terms and Conditions.
When I receive an offer on your property I will come and sit down with you in person to go over the offer in detail. The items we will focus on are Price, Deposit, Closing Date, Inclusions, Terms and Conditions.
Often times buyers will start with a low ball offer. I will guide you with my negotiation experience in order to obtain the very best price for your home. Most often the final price is the most important aspect of a real estate transaction but other items can affect the sale and even that final price.
When a buyer submits an offer there is an expectation from yourself as the seller of a deposit. An acceptable deposit is typically determined by the purchase price of the property and amount of time between the offer and closing date. The deposit is held in trust by my listing brokerage's trust account and becomes part of the buyers downpayment on closing. The deposit is not at risk until the buyers have removed their conditions. For example: If a buyer completes a home inspection and it isn't satisfactory they can void the agreement and are entitled to their deposit back.
This is an agreed to date where, as a seller, you are to provide vacant possession to the buyer. Often times this date can affect value for a buyer or seller and I can use this to leverage your position in negotiations.
The offer outlines a list of included items in the purchase. Anything that is "attached" to the property is considered part of the sale. To guarantee that items that aren't "attached" directly to the property we include them in the offer to ensure they are in the property when you take possession. Most often this list includes appliances, but can be anything agreed upon by the buyer and seller, a hot tub or shed would be a good example.
A term can be used as a function to have the buyer or seller complete a specific item or provide access to the property for specific reasons. An example of a term that I always use is " Seller agrees to allow buyer access to the property up to 24 hours prior to closing for the purpose of a walk-through". There are a number of other reasons we may include a term in the contract depending on certain circumstances. I will make you aware if we should have additional terms included in the contract if required.
A buyer may include conditions in their offer to ensure the quality of the property and also to complete financing arrangements. As a seller you may also have conditions depending on the situation. Below are a few typical conditions a buyer may include in their offer.
- Financing Condition: To satisfy this condition the bank will perform an appraisal on your home to make sure the value is enough to justify lending a buyer mortgage funds. Also, at this time the lender will verify the buyer's income and debts to ensure they are a suitable candidate for a loan.
- Property Inspection Condition: The property inspection is subject to the buyers approval and must be performed by a licensed Home Inspector. If the home inspection identifies any deficiencies the buyer wants to address they must provide us with a copy of the property inspection report to verify deficiencies and then they may try to re-negotiate the price or remediation before moving forward with the transaction. Again, my experience will be invaluable if we run into this situation.
- Condominium Document Review Condition: If the property you are selling is a condominium a buyer will likely request all of the condo documents and have them professionally reviewed. Meeting minutes, financial statements, insurance certificate, condo plan and reserve fund reports are just some of the documents that are available through the condo board the will require to have reviewed. As a condominium owner you should have a separate file where you keep any and all documentation your condo board/corporation provides you with.
It should take 7-10 business days for the buyer to satisfy their conditions. Provided all goes well they will send us a waiver removing their conditions and at this time your home is officially SOLD!
All that remains is to prepare for The Closing.