Saturday, March 10, 2007

Not just any home - It's your FIRST home - OFFER TO PURCHASE - 4th in a series of articles for first time buyers

The Offer to Purchase - 4th article in a complete series of articles about what to consider when purchasing a home
Once you’ve found a home that meets both your needs and your price range, you can present the vendor with an Offer to Purchase or an Agreement of Purchase and Sale. This offer or agreement is legally binding, so give yourself time to think before you sign; the offer should not be made casually. You may want to have your lawyer look it over to ensure that your interests are protected.

An offer or agreement will include:
• Basic personal and property details
• The purchase price offered
• The chattel or items in the home which will be included in the purchase price
• All financial details
• The closing date – usually 30 – 60 days from the date of agreement
• Request for a current land survey of the property
• Expiration date and time indicating when the offer becomes null and void

A ‘conditional’ offer or agreement will also include:
• That the offer is conditional upon obtaining mortgage financing or that the house passes a home inspection etc.
A deposit of approximately 10% usually accompanies the offer and is presented to the vendor by their agent. Often the vendor will make changes and return as a counteroffer which you may accept, reject or even revise. Most often, they hinge on money, so it’s best to know what your absolute upper limit is before you start negotiating or you may get caught up in the action and offer more than you really can afford.

The process of buying a home has its ups and downs. As long as you’re prepared for them, the ride can be exciting and rewarding. Especially on the day the deal is done!

This article and series brought is courtesy of:
Marilyn Eidner, AMPMortgage ManagerHalton/MississaugaScotiabankCell: 647-271-7040Fax: 905-822-0811

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829

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