This may not be a particularly “fun” blog, but it’s an important one. For folks writing offers on a new property there are things that you will need to find out about to ensure it's a property that fits your needs and the needs of your family. Our Buyer's Guide does a deeper dive into defining your goals.
When you view a property (and like it) you can write an offer, but you still have the opportunity to make sure it really is the right property overall. Whether you are searching for a single family home, duplex, townhouse, or a condo, each property will include different pros and cons you should be clear on before moving forward.
In a standard Contract of Purchase and Sale, there is a section referred to as Terms and Conditions. The terms can refer to how much you are offering to pay, the date you want to take possession, how much of a deposit you are going to be able to put down, etc. Though decided upon at the time of writing, they can sometimes change down the road, so long as all parties agree to the changes being requested and made.
Conditions (AKA. Subjects) are often considered to be the potential “deal breakers” of an offer. Also decided upon at the time of writing, you’ll usually have about 10 days to waive or remove them if you wish to–it is referred to as “our due diligence”. If any of the subjects demonstrate that the home is not what you want after all then you can be “released” from the offer and walk away without penalty having put no money down.
The two most common subjects or conditions you’ll hear of, though there are more, include:
By the time you’ve reached this point, you should already have a pre-approval. Once an offer has been accepted, we then inform the bank to get their official approval. The bank needs to feel confident about the value of the property and be sure that it isn’t worth less than what they’ll be lending, so they may seek an appraisal and request an appraiser go look at the property.
This is an important subject, especially if you are buying an older home, as you’ll want to know what condition the property is currently in and answer some key questions: How old is the roof? Is the foundation in good shape? Are there any signs of water damage? Find out all you can about the larger components of the home, because these are the aspects that could cost you big money if they need to get dealt with. When something needs to be repaired or replaced right away, there may be options for you as a buyer because Nancy and Sophia can ask the sellers to take care of the issues as part of the conditions. If it’s something that is too great an expense to remedy, we could instead opt to walk away from the offer altogether.
Depending on what you are buying: condo, single family home, or investment property, there are many parts to making an offer to purchase. What is key for you to know is that we will put the terms and conditions into an offer that make the most sense for your needs, goals, and plans!
This intro. was just a start, but we hope it gives you a better idea of some of the most important aspects of making an offer and all that comes with the process of buying a home.