Making an Offer

If you require a mortgage, getting pre-approved by your lender of choice is the first step. Getting pre-approved, will give you an understanding of how much you can borrow and therefore how much you will need as a down payment. This calculation will take into consideration closing costs and monthly payments (such as property taxes) as well. Your lender of choice will commit to providing you with X amount of funds at Y interest rates. Once you know the financial boundaries around your ability to borrow, you can make an informed offer within your “affordability” range.

Elements of an offer


We will supply you with as much market information as we are able to provide. This should give you a good sense as to the property’s true value and give you confidence in the price you plan to offer. Your offer may be higher or lower than the asking price subject to your review and understanding off the market statistics in your possession.

Inclusions and Exclusions

These might include appliances and certain fixtures or decorative items, such as window coverings or mirrors. These items would remain in the house or be removed by the Seller before closing. Chattels and fixtures screwed into walls or nailed down are considered to be inclusions unless specifically excluded.


Your deposit shows good faith and will count towards the purchase of the home when the sale closes. The size of your deposit is part of your negotiating strategy.


Examples of commonly seen conditions are: financing; home inspection; financing and sale of Buyer’s property.


Purchase price, deposit, closing date, inclusions and exclusions, condition(s) if any, make up the bulk of the usual terms in an Agreement of Purchase and Sale. Terms will vary based on the particular transaction you are seeking to engage with.

Closing and Possession Dates

The closing date is the date on which the title changes hands from the Seller to the Buyer. The possession date is the date the Buyer has access to the property. Barring exceptional circumstances, these two events fall on the same day.

types of offers

Firm Offer to Purchase

Usually preferred by the Seller. A firm Offer enables the Seller to immediately make his future plans with confidence. The Buyer benefits in the same way.

Acceptance of an Offer

Your Offer to Purchase will be presented as soon as possible. The Seller, when presented with an Offer for his consideration, has 3 options: Accept, Reject or Sign Back. When a Seller gives a Sign Back (counter offer) to a Buyer, the Buyer then as the same 3 options. The offers can go back and forth until both parties have agreed or one of them ends the negotiations.

Conditional Offer to Purchase

Usually means that you have placed one or more conditions on the purchase, such as “subject to home inspection”, “subject to financing” or “subject to sale of buyer’s existing home”. The home is not sold “firm” until all the conditions have been met and removed from the Agreement of Purchase and Sale.

Bully Offers

Traditionally, for an offer to be considered a true ‘Bully Offer’ it will be 10% over the asking price. The making of a bully offer comes with considerable risks for both sides. The buyer may be paying too much and the Seller may be selling for too little, even at 10% over his ask. Every circumstance is unique and we will work on a strategy with you to ensure no opportunity is lost and nothing is left on the table.

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