Making The Offer
So now you have found a home that you wish to purchase. It is time to “put it in writing” as they say and make the offer. Your offer will be based on comparable sales of homes in the neighbourhood, how much you like the home, how suitable the home is for your needs now and in the future , the area and neighbourhood location and how affordable the home is to you. All of these factors will play a role in how much you are willing to pay. Using our many years of experience and expertise we will guide you through the process. We analyse the marketplace and try to find out everything we can about the home so you can make informed decisions. Attention to details are important to represent you in the purchase of your new home.
We go over all details with you prior to signing any agreement and advise you on the best way of negotiating a successful result. The current market is sometimes challenging but with our experience we can guide you with our knowledge and experience of successfully representing buyers for generations.
We will take our time to explain all aspects of an offer to you and explain tactics around negotiations and “bidding wars”.
Most importantly we ant ou to read and understand what you are signing.
Terms and conditions
At the time of presenting an Offer to Purchase you will have to submit a deposit cheque, which will be held in trust by the listing broker if the offer is accepted. The cheque is usually certified, bank draft or wire transfer. It is deposited the day after acceptance, unless otherwise agreed to with the Agreement of Purchase and Sale. A deposit must be delivered to the listing brokerage within 24 hours of an accepted offer.,
Irrevocable time: This is the amount of time that a Buyer gives an owner to reply to an offer they have made. Every time an offer goes from a buyer to a Seller or a Seller back to a Buyer the irrevocable time is changed.
Inclusion and Exclusions: This provides details on what is included with the home- usually the listing agent can provide this list but always a good idea to when you walk thru a home to look at the items ( appliances , window treatments etc…) Exclusions are what a Seller may wish to take with them -( a dining room chandelier perhaps). If there are items that are included that you do not wish to have – like the freezer in the basement – this is where you would mention it.
Conditions: Standard conditions are – Building Inspection- Financing- Insurance and in a slow market a condition of the sale of a home.
Home Inspection: There may be what is known as a prelist inspection available that was done by the Seller or his agent prior to going to market. Advisable to review and accept if you are comfortable with the information an should it be someone who is known in his field.If time allows have one done prior to making an offer ( especially in bidding wars) or if there is a slower market make it a condition of the offer. The cost is usually $500 and up. The cost will vary with the size of the home being purchased and the inspection company used.
Financing : check with your mortgage and financial lenders prior to making an offer as you may be in a position where a condition will not be acceptable. Find out exactly what you can afford and stick to it. Remember that one you make an unconditional offer you have bought the home.
Insurance: This condition is sometimes used in older homes that have not been update- wiring , plumbing , roof. By the time to get to an offer you should know a lot about the home and a call to the insurance broker will allow you to have an idea if there may be any issues around obtaining insurance. Sometimes the Seller provides there insurance contact . Some insurance companies ask that certain items like knob and tube wiring be replaced be a certain date.
Those are your main 3 .
There are other conditions such as the review of the Status Certificate for Condominiums and well and septic inspections in rural properties but for the urban buyer there is only a handful. With multiple offers and quick decision times a Buyer has to be prepared.
That is were hiring experienced agents such as ourselves will provide you an edge in fast markets, without pressure but with calm understanding of the process and helping you make decisions on the best way to negotiate.
Closing date: sometimes a Seller has an exact date in mind- we will find out what that is and how it could fit into your plans. If you have a house to sell a longer closing is better to allow you time to sell your existing home. Always a good idea to speak to your mortgage broker about intern financing just in case the closing dates do not line up. Again something we work through with you.
Presenting an Offer
After we have gone through the documentation and signed the offer we will then present the offer on your behalf. We will use our expertise in the field of negotiating to try to secure a deal for you on the home. Our many years of market knowledge combined with the experience of having negotiated numerous offers over the years provide you with the expert skills required to be able to negotiate a successful offer. or put you in the best position in bidding wars.
The Accepted Conditional Offer
Once the offer has been accepted the work begins in coordinating such things as the building inspection, an appraisal of the property, – basically we will arrange any and all visits to the home that may be required to best protect your interest and meet the terms and conditions of the offer.