Elements of A Real Estate Offer

Price

Depending on marketing you find yourself in, the price you offer is usually different from the asking price. This starts the process of negotiation between you and what the seller is willing to accept.

Deposit

Once a price is agreed upon between you and the seller, a deposit of a certain amount is expected in order to show good faith on your part. The deposit is applied against the purchase price of the home once the sale closes. Your real estate agent should advise you on a suitable amount to deposit.

Terms

The terms include the total price the buyer is offering, as well as the financing details, as well as any extras that have been agreed upon in the negotiation period.

Condition

Conditions is the criteria for the tentative agreement. If the conditions aren’t met, the agreement is broken and both the buyer and seller are not obligated to follow through with the real estate deal.

Conditions may include:

• subject to home inspection
• subject to buyer obtaining financing
• or subject to the sale of the purchaser’s property

Inclusions and Exclusions

There might include appliances and certain fixtures or decorative items, such as window coverings or mirrors.

Closing/ Possession Date

The closing/possession date is usually the day the title of the property is transferred to the buyer and funds are received by the seller. This can change for a variety of reasons, though not very often and only under certain circumstances.