Conditional Offers

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The list of conditions can be long or it can be short.  While we were in the Seller's market over the past few years we'd see many unconditional offers but the times have changed...

So you've been out searching for a new place to call home, it's taken awhile, you've seen some good, some bad and some terrible.  BUT now you've found what you've been searching for all along and want to put an offer in to try and make it yours.  Now what?  Other than the $$$ attached to the offer, we have to look at protecting you as best as possible.  Which means inserting conditions.

Home Inspection

  • We all know doing a home inspection is a very important component of purchasing a new home...perhaps even more important is getting the right person to do the home inspection.  
  • Timelines are another important consideration.  Typically they last for 7-10 days from acceptance of the offer.  Sellers prefer a shorter time frame so the house is not tied up for a significant length of time.  Many people won't even visit a home if it's conditionally sold.  So paying attention to these timelines can tilt your offer in the right direction if there is more than one offer for the sellers to look at.

Financing 

  • You've already been pre-approved by your mortgage broker or bank but this doesn't mean that we don't have to insert a financial clause.  This will protect you should something have changed since you last sat down to get pre-approved. 
  • Mortgage rules have been very fluid over the last 6 months and this helps protect you in the off-chance that your bank will not finance you for the amount you are looking for.

Lawyer Review

  • What if the property has a "right of way" or something else associated with the property?  If we're lucky enough to get a survey, we're inserting a clause stating that your real estate lawyer has the opportunity to view it and advise on the implications. 
  • This one clause saved clients of mine from the purchase of a property that had no legal parking...well there was a legal parking spot, in their backyard...after crossing through their neighbors backyard.  Not the best way to make new friends.

First refusals

  • These have not been seen around these parts for quite sometime but are becoming more and more prevalent. 
  • It allows you the opportunity to sell your home by a certain date and keep you at the front of the line to purchase the new home. 
  • BUT should the sellers receive another offer you will be given 24-48 hours to firm up your deal.  Again, this is being seen more and more as we move into a balanced market/buyers market.  It helps make life easier as a buyer to not have the stress of selling your current home before purchasing your next home.

These are just a few of the most common conditions we see within offers and by all means not all of them.  Timelines play a big part within the offer to purchase and at the end of the day it's my job to make sure you are as protected as possible through out this entire process.  If you'd like to sit down to discuss any of this or would like a referral for a real estate lawyer or home inspector please feel free to get in touch with me.

Read 2159 times Last modified on Monday, 21 January 2013 18:16

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