Making An Offer

Making An Offer

Shaking Hands

Developing an Offer Strategy 

You have found your dream home, the next step is formulating your offer strategy to ensure that you don’t miss out on buying this home! We will work closely with you in the development of your offer strategy and assist you in navigating the various required forms and documents. It is important to remember that this stage in the home buying process is a negotiation, in order for an agreement to be reached both parties (the Seller and yourself) must be happy with the terms otherwise no agreement will be reached and you will miss out on your dream home. The importance of developing an offer strategy which lays out your key goals for the transaction will help keep you anchored and focused on the bigger picture during the negotiations.

Types of purchase offers:

Your offer can be firm (without conditions), or conditional:

  • A firm offer is usually preferable to the Seller, as it means that you are prepared to purchase the home without any conditions and once the offer has been accepted both parties are legally bound to close.
     
  • A conditional offer means that you have placed one or more conditions on the purchase, the sale cannot be closed until all the conditions have been removed. Common conditions include: a clean home inspection, subject to financing approval, or subject to the sale of your existing home.

 

Key Components of an Offer 


There are six key components which must be considered when drafting an offer:

  • Purchase Price - arguably this is the most important component of an offer, we will ensure that you have up-to-date market information such as sold prices of recent comparable homes in the area to ensure that you are able to make the best decision possible.
     
  • Deposit - this shows good faith to the Seller on your commitment to purchase their home, typically deposits range between 5%-10% of the purchase price.
     
  • Terms - this includes the total price offered and the financing details. You may arrange your own financing or ask to assume the seller's mortgage, especially if it has an attractive interest rate.
     
  • Conditions - these are items that must completed or fulfilled prior to the closing date. We will be able to advise you on any conditions that would be beneficial in your specific situation to include on the offer.
     
  • Inclusions and Exclusions - this allows you to list items (chattels) that you would like to include or exclude in the sale. These chattels can be anything from appliances to decorative items, such as window coverings or mirrors.
     
  • Closing Day - In Ontario the closing date involves the transfer of property title and the disbursement of funds. This is also the day that you are able to walk through the front door of your new home!

Once the offer has been drafted and signed by yourself the next step is to present the offer to the Seller. This is a very critical stage where we put our negotiation skills to work on your behalf. Often Realtors® will email offers to the Seller (or their Realtor), we believe that this puts their Buyer Client at a disadvantage. You probably wouldn’t want to sell your most valuable asset through an email would you? We present offers in person because it allows us to build a rapport with the Seller, increasing their confidence that you as the Buyer will close on the sale. It also allows us to answer specific concerns the Seller has immediately, which helps prevent you from losing out to another offer.

Remember that typically a deal closes within three or four rounds of negotiating.  That is, (1) a buyer presents an initial offer, (2) the seller counters, and (3) the buyer either meets the counter or (4) presents a new offer that the Seller accepts. When receiving that initial counter-offer back it is important to remain calm and stay focused on what the end goal(s) of the negotiations are. Once both you and the Seller have reached acceptable terms, signed copies of the Agreement of Purchase and Sale will be distributed and you are that much closer to walking through the front door of your Dream home!


Ready to start your Home Buying journey? Let Our Family's expertise help you find exactly what you need from a home - and a community. Get in touch by calling (519) 996-6000 or you can email us through the contact form below.

 

Proceed to Closing

 



When you sell or buy a Home with us, you deal with confidence
With our full-service team, you'll get expert real estate advice and an enjoyable experience. We have been helping our Clients successfully buy and sell property for three-generations and would love the opportunity to help you!


Line
Loading...