Put yourself in the sellers shoes and imagine how they will react to everything you’re about to put in your offer. Oral promises are not legally enforceable when it comes to the sale of real estate. Please be sure you have communicated everything you want in the offer to your Realtor.
Price
Have your REALTOR do a comparative market analysis for you. That will show you the fair market value of the property. The following factors could affect your offer price:
Property condition
New home improvements
Market conditions (that old supply and demand again)
Seller’s motivation
Multiple Offers – expect to pay more if there are multiple bidders on a property
Deposit Money
You will be putting up some money as deposit to show the seller you are sincere about purchasing his home. The amount of deposit varies in different regions. In the Greater Toronto area it is usually about 5 percent of the purchase price. This deposit is payable immediately upon acceptance of the offer and is held in trust to be applied to the purchase price on closing.
Financing Contingency
You will probably need to get a mortgage. Even if you have been pre-approved the lender will still need time to have the appraisal done, etc. Your Realtor can advise you as to how much time you need.
Home Inspection
Don’t skip this, whether it’s because you think you can check out the house yourself or you want to save the money a professional inspector charges – it’s money well spent in the long run. But remember, no home is perfect and small maintenance-type things found by the home inspector should not be part of any renegotiations with the seller. And don’t skip your final walk-through just because you had a home inspection.
Disclosures
Make sure you received all the proper seller disclosures. Sellers may have completed a Seller Property Information Statement. Have your Realtor request a copy for your review. Further, material defects MUST be disclosed if known by the seller. Look over these documents carefully – the laws that govern them limit your recourse once you’ve signed them.
Multiple Offers
It doesn’t have to be a ‘hot’ market for a seller to have the luxury of choosing between multiple offers on their property. If you find yourself in a multiple offer situation don’t panic and don’t withdraw your offer – you may be the highest bidder and won’t even know it if you pull out. Go through at least one round of negotiations before you decide to withdraw. Have a price in your mind of where you want to go and stay in the game until that price has been reached. Too many buyers lose the property by pulling out too soon. Having a well-seasoned Realtor familiar with the process can be instrumental in Multiple Offers. Taking the time to hire the right Realtor will find you a Realtor with a good reputation among their colleagues and peers; this too will aid in your efforts to attain a property in the event of Multiple offers.
What's Next?
Once your offer has been presented to the
seller the negotiating process begins. There are likely to be numerous
counter-offers going back and forth between you and the seller. There
are a few important things to remember:
Your offer is just that – an offer – until it has
been accepted and agreed to by both you and the seller. At any time during
the negotiating process another offer could come in and cause you to be
in a multiple offer – or worse – lose the house completely.
A wise buyer will try to come to an agreement with the seller in a reasonably
short period of time.
If your contract calls for a home inspection and/or a financing
condition, please choose both of these as quickly as possible and let
your sales representative know who they are. Your service providers have a limited amount
of time to protect your interests.
Be sure to comply with all requests of your lender after the mortgage
application has been done. Not producing the documents or information
they need can jeopardize your getting your mortgage on time.
Generally, the buyer accompanies the home inspector at the inspection.
Please allow at least 2 to 3 hours for an average inspection. More time
may be necessary for a large home.
Your Realtor will act as coordinator for all activities from this
point and will keep everyone in the loop as far as what is going on. The
lender, home inspector, both attorneys, the other REALTOR, the title company
will all be performing necessary duties during this time.
If necessary your Realtor will work together with the cooperating
Realtor to negotiate any repairs that were noted during the home inspection.
Remember, routine maintenance items are not the type of thing that should
be noted and negotiated. The purpose of the home inspection is to avoid
buying a home with major structural deficiencies.
Your walk through will be scheduled as per your sales contract.
Your Realtor will schedule this with you, the seller and the listing sales representative.
It should happen just prior to the closing.
The "last" to-do list
Here's what to expect on closing day:
Your mortgage lender will provide the mortgage money to your lawyer.
You must provide the balance of the purchase price to your lawyer.
You will be responsible for paying legal fees, disbursements and land transfer taxes.
Your lawyer pays the vendor, transfers the title to your name, registers the mortgage, and provides you with the keys.
If all of this sounds a little overwhelming – don’t
worry – you’re in good hands. Your Realtor has been through
this many times and will be there for you during the entire process. Relax
and enjoy the experience.
Call Scarlett at (416) 705-5812 for a FREE evaluation or
Scarlett for any questions you might have.
Buying 
