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Making an offer

After you have found the best mortgage deal for your situation and that dream property is in sight, it is time to make the offer. This is an exciting part of the home buying experience, but do not let that overshadow the importance of making the right decision because once an offer is made, it is legally binding.

When making an offer to purchase, you can do so by presenting the vendor with an offer to purchase or an Agreement of Purchase and Sale. Take note that your offer should include the following information:

• The property details including the names of the seller and the buyer
• The sum being offered for the property
• The mortgage details and deposit amount (lawyer will finalize the mortgage paperwork)
• The Possession Date
• An Expiration date of when the property becomes void
• A list of items which are to be left in the house (fixtures and fittings) as agreed verbally between seller and buyer
• A statement of adjustment that confirms the price, balance of the deposit, and any other adjustments.

If you have any doubts as a buyer, conditional offers can be made. Conditional offers protect the buyer in the event they cannot get a mortgage or the property fails home inspection.

The seller also has the ability to put in a counter offer if they are unsatisfied with the purchase offer. This means the seller can suggest changes to an offer price, closing date, or any other aspect of the offer. As the buyer, there is also the option to negotiate the counter offer of the seller. It is essential to keep your budget in mind no matter how much you want the property. If the counter offer becomes too high that repayment of the mortgage will be difficult, then do not act on emotion and only offer what you can afford.

Remember that your deposit (usually 10 % of the purchase price) is also required when you make an offer. The deposit amount is held by the seller's lawyer/agent. Your deposit is then applied to the purchase price and deducted when the offer is accepted and the funds are paid. If the offer is not accepted, your deposit is returned. If you change your mind and the offer is accepted, then you default your deposit.