Types of Offers
After reviewing the homes with the Agent to identify the home of your choice, you will discuss the options available to you. You are now ready to make an Offer. Below is a short synopsis of the type of offers and what an offer can entail.
The Seller options are:
Firm Offer to Purchase
More often than not, a firm offer to purchase is most preferable to the seller because it means the buyers are prepared to purchase the home without any conditions. The buyers understand what they are buying; they understand that they are not making it conditional on Financing arrangements and/or Home Inspection and they are basically buying the house as-is.
Conditional Offer to Purchase
This usually means that the offer has been accepted, the terms of the offer are acceptable to both the Seller and the Buyer and that there are 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". When this offer is accepted, the home is now conditionally sold – as there are conditions to be met.
Presentation and options of Acceptance of an Offer
The process is as follows:
An Offer from the Buyer is presented to a seller who review the contents of the offer with his Agent. The Agents explain to the Sellers what’s being offered, the term and timelines and closing date as well as the price being offered.
Seller may accept the offer, reject it, or submit a counter-offer (sign-back). The counter-offer may be in reference to the price, closing date, or terms within the offer. Offers can go back and forth until both parties have agreed to terms or either side ends the negotiations.