Reviewing an Offer to Purchase
An Offer to Purchase includes the price a buyer is willing to pay, as well as a proposed closing date, financing, conditions and items that are to be included in the sale.
One of the most important things to consider is the closing date. Is it going to involve extra cost to you to have to move on that particular date? Are you going to have to store your furniture because of a short closing or face the prospect of carrying two properties for a couple of extra months because of an unusually long closing?
Financing also has a great impact on the offer. For example, if you have to discharge existing debts and mortgages against the property, be sure to verify whether you'll have to pay early discharge fees. If so, this will undoubtedly have an impact on your decision. In the offer, the buyer may also request that you take back a mortgage, and your decision will largely depend on your lifestyle.
You'll have to weigh conditions carefully against the price that is being offered. You may not want to tie yourself to an offer that's conditional on a purchaser selling his/her own property, because, in the meantime, you could have two or three more offers without any conditions. Conditions on financing are generally quite short and, as a seller, you will want to know if the buyers will be able to get the necessary financing before you accept an offer from them.
Items included in the Sale
Buyers may want to include certain chattels in the sale of your home which you may not wish to part with. If you do have items you don't want included in the sale of your home, it's best to remove them from sight before you actually put your home on the market.
How a REALTOR® helps
Your REALTOR® will review all offers with you and help you to view them objectively. Be prepared to allot an adequate amount of time for this task. Once the offer is submitted, the ball is in your court and you must decide whether you wish to decline it altogether or make a counter offer. And, of course, your REALTOR® will be happy to provide helpful advice if you have any particular concerns or questions. In addition, it is always advisable to seek legal counsel on such an important matter.
This information is provided by the London and St. Thomas Association of REALTORS®. The information herein is believed to be accurate and timely, but no warranty as such is expressed or implied.