How to prepare an offer to purchase a property?

Most importantly, an offer to purchase real estate is a legally binding document in which the buyer expresses their interest in purchasing a property under certain conditions. A properly drafted offer, taking into account the market characteristics of Calgary and the requirements of Alberta, significantly increases the likelihood of its acceptance by the seller. Below is a detailed step-by-step plan for preparing an offer in plain language.

Determining your budget and preliminary credit position

Before contacting an agency or real estate agent, you need to realistically assess your financial capabilities. Determine the maximum amount you can offer, taking into account:

  • the size of the down payment (the deposit usually ranges from 5,000 to 10,000 CAD in Calgary);
  • property appraisal, notary, and legal fees;
  • home insurance and other closing costs.

It is also a good idea to obtain pre-approval for a mortgage from a bank or credit union. This gives you confidence in your ability to finance the purchase and serves as an argument to the seller.

Structuring the offer

The offer consists of several mandatory sections:

1. Identification details

The full legal names of the buyer and seller and the address of the property to which the offer is directed are indicated.

2. Price and advance payment

The agreed purchase price and the amount of the deposit held in escrow until the closing of the transaction.

3. Date of transfer of ownership (Possession Date)

The specific date when the buyer becomes the owner is indicated.

In Calgary, a period of 30–60 days after acceptance of the offer is typical.

4. List of items included in the sale

The real estate and additional items are specified — household appliances, curtains, built-in furniture, etc.

5. Term of the offer

The date and time by which the seller can accept the terms without change. After this date, the offer is automatically canceled.

Selection and wording of conditions

The conditions in the offer protect the buyer by allowing them to cancel the deal without losing their deposit if certain circumstances do not materialize. The main ones are:

  • Financing Condition: gives the right to withdraw if the loan is not finally approved.
  • Home Inspection Condition: allows you to check the condition of structural elements and plumbing before purchase and request that any defects found be repaired or the price reduced.
  • Sale of Buyer's Property Condition: relevant if you need to sell your own home in order to purchase the property.
  • Radon Testing: Calgary is located in an area with elevated levels of radioactive soil gas, so it is advisable to include this condition for additional safety.
  • Condo Document Review: For apartments in the Beltline or East Village areas, it is recommended to check the association budget, reserve fund, and planned special assessments.

Note: All conditions must have a clearly defined deadline (Condition Date), usually 5–10 business days after the offer is accepted.

Calgary Market Conditions

Calgary is a diverse market where demand and prices vary by neighborhood:

  • In the prestigious neighborhoods of West Springs, Aspen Woods, or Mount Royal, properties often sell at competitive rates with multiple offers on the table.
  • In areas with moderate demand, there is room for negotiation.

Tip: A real estate agent with experience in a specific area will help you choose a “smart” starting price — not too low to scare off the seller, and not too high to overpay.

Working with professionals

To prepare and submit an offer, you will need to engage:

  • A licensed real estate agent — to prepare the documents and advise on the best terms and conditions.
  • A lawyer or notary — to confirm the legal validity of the transaction, check the title and the presence of encumbrances (liens) on the property.
  • A mortgage broker or financial advisor — to help with the final mortgage loan and determine the best loan terms.

Submitting an offer and next steps

Once all the details have been agreed upon, the real estate agent submits an offer to the seller or their agent. The following responses are possible:

  • Acceptance of terms — exchange of signed copies, the due diligence period begins.
  • Negotiations — the seller may offer to change the price, terms, or conditions. Consider a compromise only if it is in line with your budget and priorities.
  • Rejection — the offer is canceled without the possibility of negotiation (unless a counteroffer is made).

Once all conditions have been met, the buyer proceeds to finalizing the mortgage: the bank will appraise the property and re-check the financial documents (underwriting). At the same time, business and property liability insurance required by the lender is being prepared.

Final tips

  • Clarity and accuracy in the formulation of terms and dates will avoid unnecessary disputes.
  • An adequate deposit demonstrates serious intent, but should not overburden your finances.
  • Analyze commission expenses: take into account real estate agent commissions and legal services in your final calculation.
  • Be flexible in negotiations: understanding the seller's motives will help you find mutually beneficial terms.

By following this plan and engaging qualified professionals, you will be able to make a competitive and secure offer to purchase a home in Calgary, maximizing your chances of success and reducing the risk of legal or financial complications.