Tips for reviewing the Offer to Purchase
Being familiar with any contingencies, provisions and requirements in the Offer to Purchase will save you time and money during the process of selling your home.
Mortgage or Third Party Financing
Even the best price will lose its sheen if your buyer can’t come up with the funds on closing day. To protect yourself, make sure that the buyer has been pre-approved for a mortgage big enough to purchase your home.
Contingent to Sale of Buyer’s Home
An offer contingent on sale of the buyer’s home is risky. If the buyer’s property does not sell, the sale is off and the buyers’ deposit is usually returned. It is a good idea to include a release clause in the contract, which allows you to continue marketing your home.
Risk of loss or damage
To avoid disputes regarding loss or damage to the property, ensure that your insurance cover does not expire before the closing date. If otherwise, inform the buyer
Home Inspection Contingency
It is one of most common contingency. The buyer usually pays for the inspection. To avoid disputes, clarify if the offer requires you to pay for additional specialized home inspections and the cost of repairs.
Occupancy
Some buyers will include a clause that penalizes sellers who don’t move from the property by a specific date. Be confident that you can vacate your home by the date requested before accepting the offer.
Fixtures and Chattels
It is generally accepted that all attached fixtures and appliances will be sold with your home, but the buyer must list these carefully in the offer to purchase. If you have items that you do not wish to include when selling your home, it’s a good idea to let your real estate agent know from the get-go, so he or she can help mitigate the expectations of buyers.
As a seller, you want to receive the highest price possible. But the closing date and other conditions can be just as important. Sometimes a lower price with fewer restrictions can be a better deal.