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Purchasing a home is a big deal, especially if you’re doing it for the first time. There is so much to know about the process, so it sure helps when you have a few of the basics of real estate lingo under your belt. We’ve got you covered.

Check out these five key terms you should know before purchasing a home:

1. Offer

An Offer to Purchase is the legal document submitted by you to the seller of the home you wish to purchase. The offer usually expires after a period of 48 or 72 hours.  It includes your name and the name of anyone else purchasing the home, the seller’s name(s) and the legal address of the property. It also outlines the price, deposit, terms, and timeline of when you would like to take possession of the home. This document the most important in getting you into those new digs and it can be a little complicated. Rest assured, your Realtor® is there to walk you through the whole process.

Quick Tip:

Before you make an offer, you and your Realtor® should go through a list of similar homes on the market or that have sold recently near the home you wish to purchase. It will help you to make an informed choice of what amount is fair to offer.

2. Conditional Offer

Unless you are in a bidding war and able to exclude conditions without batting an eye, your offer is going to require some conditions to be met before the deal is final. The most common conditions included in an offer to purchase are the requirements of the house to pass a home inspection, your being approved for a mortgage to finance the purchase of the home, and an appraisal. These conditions usually have a timeline associated with them. There are many other conditions that you could apply, but these are standard and often expected on the agreement. These prerequisites propose mutual benefits to both you and the seller.

Quick Tip:

If you happen to get into a multiple offer situation or if your Realtor® is made aware of another offer coming in on the home, you can shorten the timeline of the conditions or waive them altogether. Just be careful to discuss this with your Realtor® to ensure it’s worth the risk.

3. Counter-offer

When you submit an offer to a seller, they have a few options on what to do next. They can accept it, reject it, or choose to make changes to your offer and send it back to you (counter-offer) in an effort to negotiate price or terms. Counter-offers often expire within 48 to 72 hours. Most often a seller will make a counter-offer negotiating the price to try and get a little more money. Other reasons could be to move the closing date or shorten the timeline for conditions.

Quick Tip:

This is one of the ways that doing your homework at the beginning of your home search in finding the right Realtor® will pay off – when negotiating an offer. A knowledgeable Realtor® will work hard and get the deal done while working with the selling agent to negotiate a positive outcome!

4. Chattels

Chattels are an essential component of your offer. They are the items in the home included in the home’s listing. These are items that are not physically attached to the house or property, but are the personal possessions of the owner, and are moveable. For example, a washer and dryer set is a chattel commonly included in the offer to purchase.

Quick Tip:

Although chattels don’t always get included in the purchase of the home, there is nothing wrong with checking with the seller if there is anything you would like added. You can work these items into the purchase agreement or settle it privately.

5. Fixtures

Knowing that chattels are the movable property of the owner, fixtures are items literally “fixed” to the home or property that aren’t easily moved. You wouldn’t expect a seller to take a pool house or furnace. The common fixtures included in a purchase agreement include items such as light fixtures, ceiling fans, built-in furniture or window coverings.

Quick Tip:

When in doubt about whether the home includes a particular item, be sure to bring it to the attention of your Realtor®. They will confirm with the selling agent for clarification.

Your home is out there waiting for you! With the knowledge of these terms, the intensity of the whole process won’t feel so daunting, and it will bring you relief in knowing what to expect!

Contact us today to start your home buying journey:  1-888-444-9533, contact@faristeam.ca.

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