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in a series of tips on buying and selling real estate: After several visits, a buyer may make an offer to purchase your home. Usually presented by the buyer's real estate agent to your realtor - or directly to you if you're acting as your own agent - this offer is a formal written contract that sets forth the terms under which the buyer is prepared to purchase. It includes such details as bidding price, proposed closing date, down payment, mortgage details and repayment terms, and chattels and fixtures to be included in the sale. A serious offer should be accompanied by a deposit, often in the 5% to 10% range. Your real estate agent can advise you on what is appropriate for your situation. If the offer is accepted, the deposit is held in trust by your brokerage firm until closing day. It is then applied to the sale. An offer also generally carries a time limit. If you fail to respond within the specified time frame, the offer expires. Depending on the buyer's strategy, the time limit could be as long as a week or two, or as short as a few hours. As the vendor, you must respond within the specified time period in order to keep the offer alive. You have three options. You can: - accept the offer as is - submit a counter-offer - reject the offer entirely If the buyer has made a serious offer, most vendors usually try to negotiate the terms by submitting a counter-offer. In your counter-offer, you can propose a new asking price, a different closing date, or the inclusion or exclusion of chattels or fixtures that may, or may not, have been listed in the original offer. Like the buyer's offer to purchase, you'll also stipulate an expiry time and date. Presented by your real estate agent on your behalf, your buyer has the same options - to accept your counter-offer, to submit his or her own counter-offer, or to reject it entirely and walk away. Both you and your buyer can submit as many counter-offers as you wish until agreement is reached or one party chooses to end the negotiation. Tip No. 1: Buy First Or Sell First? Tip No. 2: The Advantages Of A Resale Home Tip No. 3: The Marketing Plan Tip No. 4: Getting Interest On Your Deposit Tip No. 5: What Are The "Usual Adjustments"? Tip No. 6: Insuring Your Mortgage Tip No. 7: Home Insurance Tip No. 8: Choosing A Lawyer Tip No. 10: Home Inspections Tip No. 11: Surveys Tip No. 12: The Counter Offer Tip No. 13: Conditional Offers Tip No. 14: Why Buy A Brand New Home? Tip No. 15: Deposits - A Vital Part Of Every Deal
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