The
Offer is much more than a LEGAL DOCUMENT. DO NOT allow it to be an EMOTIONAL EVENT!
Obviously, I cannot get into the strategies involved in presenting Offers, but allow it to
suffice to say that there are numerous games revolving around this aspect of Buying as
well. My “client’s” receive the full arsenal of strategic plans and proven
techniques whenever purchasing. To publish them on my web site would tip Seller’s
Agents to far too much of what we do behind the scenes to insure that our clients buy at
the best price, terms and conditions.
“Offer time”, that time when you have inspected all contending condo units in
your area, price range, etc. and have made your own “informed decisions”
regarding your selection and confirmed with your buyer’s agent through factual
“CMA’s” (comparative market analysis) a “true market value” on
the premises, what many times proves the most stressful, “making the Offer”
should in fact simply be a “logical conclusion to a job well done”.
Offers are different when being presented to developers from resale owners. This overview
on preparing your Offer is designed to address many of the nuances regarding resales.
Most important, right up front is to be sure to not get ahead of yourself by moving
yourself into the condo in your mind’s-eye before the deal is completed.
Whenever you submit an Offer you must be prepared for it to be rejected.
Once you have decided on your condo you will be required to “draw up” an
Offer. I have comprehensive clauses that I had my own personal attorney prepare to insure
that absolutely every protective mechanism imaginable is built into our Offers. This is
why you use a skilled and experienced Realtor who specializes in condos as the sculpting
of the contract requires specialized details and conditions.
This Offer, or better stated Agreement is legally binding so it should never be approached
casually.
Your Offer or Agreement will include:
Basic Details, such as your complete legal
names, the name of the vendor, the legal and/or civic address of the property, the unit
number, level number, parking designation, monthly condo fees, taxes, etc.
The Purchase Price. Regardless of what you
read in newspapers, and/or hear from “the street”, THE PRICE IS ALWAYS
NEGOTIABLE! So are absolutely all of the terms and conditions. Prior to offering any
amount, we do a comprehensive MLS History check on the unit showing all actual prices paid
for similar units in the building.
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The chattels or personal property in the unit
which will be included in the purchase price. In condos these usually include appliances
(refrigerator, stove, dishwasher, washer/dryer, microwave), window coverings and all
electrical fixtures. Whatever items in the unit that you think are included in the
purchase price must be set out in the Offer/Agreement.
All financial details. The amount of the
deposit, any interest to be paid on it.
The closing date. The day you will take
possession of the condo. Usually 30 - 60 days from the date of acceptance and execution of
the Agreement.
The Irrevocable Date and Time, indicates that
you are prepared to stand behind your Offer for this fixed amount of time from submitting
it at which time the Offer becomes Null and Void.
We normally make our Client’s Offers Conditional
Offers. For example, most purchasers require the Offer to be “Conditional On
Finance” meaning that you will have up to (usually) “Five Banking Days”
to meet with your bank and get their “authority” to “waive the
conditions” (we will actually draw up another document that acknowledges our
authority to “discharge” the condition).
We also usually (in bidding situations all conditions become negotiable however, I do not
recommend buying without this condition) make all offers “Conditional on Status
Certificate”. The condo corporation, under the Act has up to 10 days to deliver
us this bundle of documents with the status certificate signed by one of the Board
members. Once again we will prepare a “waiver” (document for both parties to
acknowledge that this condition has been met). Your lawyer will be granted 3 days to
review the bundle of documents (bylaws, description, condo docs, budget).
THE PROCESS OF PRESENTING AND NEGOTIATING AN OFFER TO PURCHASE
The process of making an Offer, receiving a counter-offer and then revising and
resubmitting a counter-offer (sometimes many times back and forth) is not uncommon. This
is where emotions tend to wear thin. I have long said that this is where Realtors “earn
their oats”. It has been said to somewhat resemble a roller-coaster ride - very
exciting but also anxiety producing. Your Realtor cannot allow emotions to get involved or
there simply would be no justification for them being involved at all. We Realtors buffer
between emotions breaking down the negotiation process and a skilled Realtor can actually
make it an enjoyable experience.
I don’t advance any deposit money with my Offers. Rather we contract to advance the
deposit “upon acceptance” of our Offer. The deposit is usually $10,000 - $20,000
and may bear interest (if instructed in the agreement) providing the closing is 90 days or
longer away from completion of the Offer and acceptance. |
