Steps to Purchasing a Home: The offer
Making an offer on a home might be something that buyers will become very familiar with in today’s market. In fact, according to the recent Zillow housing report, 42% of buyer’s will need to make multiple offers before successfully making their home purchase. Having the right agent by your side during this process can be a game changer in helping you navigate this competitive market in the GTA.
Below are the steps to making an offer and how we can help you during the process. 1. Search for the right home
Let your agent guide you to the right home. Use realtor aided search systems like our system called ‘Collaborate’. This system alerts you to new listings that fit your home criteria and gives you up to date facts, not delayed like some search systems.
2. Determine if the home fits your budget
It’s time to run the numbers. Do you have enough for the down payment? Can you afford the estimated monthly payment on the home? If you’re looking at purchasing a condo know what is included in your monthly maintenance fees.
3. Do the comparables
Have your real estate agent run “comps” or comparisons, which will show you what similar homes in the area are selling for and/or have sold for in the recent past. The comps will give you a feel for where the sale price may land, and of course our team guides you through this process.
4. Determine your offer price, contingencies and timeline
In a competitive market where multiple offers are submitted, contingencies and timeline can be the deciding factors in whether your offer is accepted. If you’re buying in a seller’s market, be sure to ask your agent for insights on what could make your offer more attractive to the sellers whose home you want to buy. Our team has some great tips that have worked to put our buyers on top in multiple bids.
You’ll also need to determine when you want to officially take ownership of the home, and what contingencies to include such as inspections and or financing clauses you want to include in your offer.
5. Draft and submit your offer
Your offer should be in the form of a purchase and sale agreement. Your agent will draft this for you and will be e-signed for submission.
The purchase and sale agreement becomes legally binding if the seller accepts your offer. At that point, you’re buying a house, and the purchase and sale agreement will become a key part of the paperwork that guides the final sale.
6. Seller replies: yes, no, or counter
Upon reviewing your offer, the seller might accept your offer as-is, decline the offer altogether or counter the offer. If the seller accepts your offer, they will sign the purchase and sale agreement your agent provided to them. If they decline your offer, negotiations end. If they counter by offering terms, you can either accept some or all of their counter offer or counter back.
7. Sales contract is finalized and signed
Once both parties agree to the deal and all terms the contract becomes legally binding with a deposit. Most deposits happen within 24 hours after both parties have signed. Yeay! You just bought a home. The next steps leading up to your closing are very cru and lucky we get to help you through the entire thing.