Congratulations! You found your dream home. Whether you looked at dozens of listings or just a couple, this is a very exciting time. But now comes the sometimes tricky part… writing an offer that will be most appealing to the seller while safeguarding you and protecting your investment. Conditions are clauses in the offer to purchase that must be fulfilled or waived before the contract is considered binding. Some of these conditions are fairly standard operating practice, allowing time for buyers to look more closely at the property and to get their finances in order to close the deal. Almost anything can be made into a condition in a buyer’s offer, but these are some of the most common conditions your Realtor® may recommend you include when writing your contract.
Common Realtor® Recommended Conditions For Real Estate Contracts
Home Inspection
There are very few circumstances under which a Realtor® would NOT recommend a home inspection condition in your offer to purchase. Sometimes, in a seller’s market, buyers will choose to forgo a home inspection to make their offer more appealing to a seller in a multiple offer scenario. But this is very risky. A home inspection will determine if there are costly deficiencies such as leaking roofs, faulty electrical wiring, foundation cracks, mold, and more. With a professional home inspection in hand, you can decide that the deficiencies are manageable and you will take on repairs yourself after closing, you can amend your offer price to reflect the cost or ask the seller to fix the problems, or you can rescind your offer.
Financing
A Realtor® will recommend that you are pre-approved for a mortgage before even beginning your home search. This pre-approval will help you understand how much you can afford to spend and what range of home prices you should be searching within. But a pre-approval is not a guarantee that your mortgage company will lend you the money for your purchase. Once you have chosen the home you wish to buy, your lender will have several obligations you need to fulfill to secure financing. These may include proof of income, a home appraisal, credit and tax information, and more. A financing condition will allow you the time you need to provide all necessary documentation to your lender and receive final approval of the funds to pay for your new home.
For first time homebuyers who are unsure how to even begin the home buying process,
read How To Get Started.
Included Items
The listing contract drafted by the seller and their Realtor® will detail which items are included in the purchase. Typically this includes appliances (fridge, stove, dishwasher, washer/dryer), lighting fixtures, window coverings, etc. If there are items that you saw when you viewed the home that made it appealing to you, your Realtor® may suggest writing a condition to include these items. These could be features such as a hot tub, a custom couch that fits an unusual nook, or the microwave oven. Often these items become leverage as the final sale price is negotiated.
Home Visit
Sometimes you may have only visited a property one time when you write your offer. During the process of finalizing the contract, you may have the opportunity to visit again during the home inspection, or if your Realtor® requests access, but many times you will only see the property once or twice before possession. Your Realtor® may recommend that you include a home visit condition in your offer. This will allow you to access the property after the offer is accepted and before the possession date. This condition will typically allow one or two visits (with agreed-upon notice) that will allow you to measure the home for new furnishings or finishes like paint or flooring, plan for anticipated renovations, or just refresh your memory as you prepare your family and possessions for their new home.
Protect Your Investment With Conditions And An Expert Calgary Realtor®
Including a couple of conditions in your offer to purchase is a normal practice and a smart way to protect yourself and your investment. Conditions give you the opportunity to dig a little deeper than you may have been able to during a standard viewing and make sure that this home is the perfect one for you. An experienced Realtor® will have the insight and the know-how to include conditions that make sense for you, but that do not make an offer unappealing for the seller.
If you are looking to buy your first home, your next home, or your forever home, book a complimentary consultation with the team of Realtors® at the Tanya Eklund Group. Our expert team can guide you to find the home of your dreams, draft a strong and appealing offer, confidently negotiate on your behalf and get you home. Connect with our team by calling (403) 863-7434 or through our contact form.