What To Expect When Making an Offer on Your Dream Home
The joy of finding the right place can often cause homebuyers to see the world through rose-coloured glasses. Everything is beautiful, and emotions tend to take over. However, we’re here to make sure cooler heads prevail. Here we explain what to expect when making an offer on your dream home.
The Listing Agent
We have seen what happens when a buyer’s real estate agent comes to the negotiation table, guns blazing. Sellers don’t like to feel they’re being taken advantage of, so the take-it-or-leave-it attitude often backfires.
No one puts baby in the corner!
We create relationships with listing agents, eliminating the us vs. them mindset. As a result, we have a far more productive discussion. Although we are ready to fight for you, we see better results by showing a willingness to strike a fair deal. This gives us an edge over the competition and makes the listing agent more empathetic.
Terms of Offer
The terms of the offer tell the seller what you’re willing to pay and the terms and conditions you need to seal the deal. You need to make a fair offer that won’t turn a seller off, yet covers everything you need to feel comfortable with your purchase. Terms include:
This is the amount you’re willing to pay. You don’t want to go in too low and have your offer refused or too high and have no room for negotiation. We’ll advise you on the best price for the situation.
Clauses are designed to protect you through the purchase process. Conditions included need to either be waived or fulfilled before the transaction takes place, such as:
• Home inspection and appraisal
• Survey and lawyer review
• Status certificate review for condos
Chattels & Fixtures
These are the inclusions and exclusions to clarify what does and does not come with the home, such as appliances and light fixtures.
This is at least 5% of the purchase price provided by bank draft or certified cheque. It must be deposited in your account within 24 hours of the acceptance date.
This is the date you pay for the home and take title/ownership of the property. You can finally exhale and relax.
The Irrevocable Period
The irrevocable period for your offer is the time frame between the date you place your offer and the date it expires. During this time, your offer stands, meaning you can’t back out. Typically, a 24 to 48-hour period works well. It gives enough time for the seller to consider the offer but also frees you from commitment should another property come up.
Three Possible Offer Outcomes
There are three possible outcomes from your offer:
1. Acceptance, meaning all is well and your offer is accepted as is
2. Counter, meaning the sellers want changes to the price or conditions
3. Rejection, meaning your offer is rejected flat out, and that’s the end of it
When inventory is low, it increases the risk of multiple offers. This is the worst-case scenario during the offer process: The bidding war. Multiple offers are based on “blind bids” put in by each buyer. Only the seller sees all the offers, meaning we need to choose an offer strategy that outshines the competition.
Although the offer period can be stressful, at North Group our offer strategy helps ensure you secure your dream home and have an experience worth talking about.