FAQ #5 - WHAT HAPPENS AFTER WE GET AN OFFER ON OUR HOME?

FAQ #5 - WHAT HAPPENS AFTER WE GET AN OFFER ON OUR HOME?

Gananoque, On

First of all, congratulations!  But don't pop the champagne cork yet!!

You're a long way from actually selling your home at this point, but it is exciting.  Please don't think I'm being "Debbie Downer" here because there are many many things that need to take place before you actually hand over the keys and move on.

Now this offer you've received, it may not be exactly to your liking :0)

However, I always like to advise my Sellers that it is far better than all the others that didn't submit!!

Emotion has to be removed from the situation and calmer heads will prevail.

First of all, in Ontario, an Agreement of Purchase and Sale is prepared on behalf of the Buyers by their Realtor.   It is then presented by  email, fax or in person to the Realtor representing the Sellers.  Usually by email. 

Occasionally a Buyers agent will insist upon presenting it to the Seller in person, thinking they may be able to glean a reaction of some sort that will aid their Buyer in the negotiation process.   Personally, I've never understood this as all Sellers are advised to remain silent and show zero reaction to anything that is being discussed.  A complete waste of time, in my opinion.

Once the offer/agreement is presented, the Seller has 3 choices:

1. To Accept the offer as is
2. To Reject the offer outright
3. To Counter the offer - make changes and send back to Buyer

The offer will have an "Irrevocable Date" which is the length of time the Buyer has provided to the Seller to consider and respond to their offer.  

There are several items to consider within the offer itself, not just the price the Buyer has offered to pay for your home.   The conditions are often more crucial than the price itself!  The completion date is also very important.

The normal conditions that are included are for the Buyer to arrange:

1. Financing
2. Insurance
3. Building Inspection
4. Water & Septic acceptable
   

There will be others that we see such as a condition allowing the Buyer time to sell their own home, giving them 48 hours to remove this condition should another offer be presented.   However, the above are the traditional conditions that we see.   It will be written into the offer, the exact time and date in which these conditions are to be met, ie.  "Prior to 6pm on the 4th of June, 2012".   There are still some older agents that still insist upon writing in "within  7 business days" but this should be corrected to reflect the above, more detailed time line to avoid any confusion.  (What is a business day now with places open 24/7 ??)

If you as a Seller, are not happy with the above conditions included in an offer, or the price is not to your liking, your Realtor will walk you thru a Counter offer in which your "new and improved' conditions and purchase price will be inserted.  Some conditions may be deleted in their entirety and some may be accepted as is.    This is your opportunity to negotiate the best possible transaction.    This isn't a time for emotions or for stubbornness . . .  always work with the comparables your Realtor will provide you.  Of course, you will have a $ bottom line that you must get in order to discharge all monies owed on your home but hopefully, that was all discussed prior to listing your home for sale!  

You, as a Seller, will provide a date and time for your Buyer to accept your Counter offer.   They will also have the same options to Accept, Reject or Counter.    This continues until both sides are satisfied with the terms and condtions.  You then have what is know as an Accepted Conditional Offer.

The Buyer needs to be satisfied that all conditions have been satisfied, in their sole and absolute discretion.  Then, and only then, will their Realtor provide them with a Fulfillment of Conditions for their signature.  This is to be forwarded to the Seller/Sellers Agent before the deadliine.  If not, the offer is considered Null and Void !  (unless an Amendment is provided extending the deadlines) 

All sorts of difficulties can present themselves between receiving an offer and actually having your home SOLD so a Seller needs to remain calm and not jump the gun.   There can be problems with the Home Inspection, issues with obtaining a mortgage . . .   

Until the SOLD sign goes up, don't get overly excited!!! 

If you would like to see a SOLD sign on your home, give Susan Emo a call -  What Susan touches turns to $old!

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