Buying a house can be an exciting but stressful (and often expensive) process. Scrolling listings, attending viewings, getting approved for a mortgage and paying various fees are just some of what the system entails. But after finding the home you want to buy, the biggest challenge is securing the purchase. Real estate is a competitive market; regardless of where you are, you must act fast.
Keep reading if you need clarification about how to put an offer on a house. Here, you can learn how to move quickly to ensure the property you want becomes yours.
Making An Offer on a House: What Does It Mean?
Making an offer on a house means making an offer to the seller or the seller’s agent, providing the financial figure you are prepared to pay for the property. It can also include certain conditions that must be met, such as pre-mortgage approval. The seller must then decide if they are willing to accept your offer, turn it down, or make a counteroffer.
The offering stage is not always plain sailing – it can take multiple offers to secure the sale of a house. In a hot market, several people might be competing for the same property, some of whom are willing to pay well above the original asking price. As this can result in tiring bidding wars, buyers should always expect to negotiate when trying to secure a home sale.
It is only when your offer is accepted, and both parties are happy that you can progress to the next stages.
How to Put an Offer on a House: 4 Essential Steps
You’re now actively browsing the latest listings, but do you know what to expect when you find that ideal home? It’s pretty straightforward, but there are a few things to know before you jump in with an offer, especially if you’re a first-time buyer or it’s been a long time since you invested in property.
Here are some essential steps to think about before putting your offer in:
Get a mortgage pre-approval
Purchasing real estate is a substantial financial commitment. You must be financially prepared to show sellers you are serious about making an offer. But unless you already have the cash to hand, you will need to secure financing from a mortgage lender.
Getting pre-approved for a mortgage means your mortgage lender provisionally agrees to loan you the money for a property. While it doesn’t guarantee your loan, it shows sellers that your finances are in order and you are a capable candidate. So, it’s always best to get pre-approval before making your offer.
Be comfortable with the price
Real estate is expensive, but it shouldn’t put you into financial hardship. You should only make an offer if the purchase price is within your budget; otherwise, you’re setting yourself up for problems. It can help to get familiar with the listing price and consider how much you can go above the asking price if necessary.
Your Pickering REALTOR® can help you understand the local property market and whether an offer below or above the asking price is a likely option.
Know your down payment
A down payment is the money you pay up-front to buy a home. The minimum down payment for property in Canada is five percent of the purchase price, but it’s better to make a larger down payment if you have the funds. Ultimately the bigger the down payment – the smaller the mortgage loan.
Get ready to negotiate
As a buyer your initial offer may not be accepted. You should be prepared to negotiate the offer. If there are multiple offers, as a buyer you should be prepared to submit your best offer as you may not get a second chance.
What Your Offer Should Include
You can make the seller an offer when you find a property of interest. However, you should discuss your options with real estate professionals first. They can guide you toward making the best offer based on the current market, comparable sales, and, most importantly, your budget.
Once you’re ready to commit to buying the property, your real estate agent can draw up the relevant paperwork. These documents usually include the following:
- Your name, the seller’s name and the property address
- The purchase price, i.e., how much you want to pay for the property and how much you want to put down as a deposit
- Items to include or exclude
- The closing date, which is the day you want to take possession of the property
- The expiry date for your offer
- A land survey request
- Any additional conditions to complete the purchase, such as a home inspection report and financing
Top Tips to Strengthen Your Offer
It can be extremely disappointing if the seller declines your offer, especially after finding the perfect home after a lengthy search. To mitigate this upsetting experience, there are some things you can do to make yourself a more attractive candidate to the seller.
Try the following tips:
- Work closely with real estate professionals who can offer you expert advice about your purchase
- Get pre-approval for a mortgage
- Make it clear to the seller that your finances are in order
- Have an earnest money deposit so you can make a reasonable down payment
- Limit the number of conditions where possible
Transferring A Property From A Person To A Family Business
One method of avoiding LTT is to transfer property from an individual to a family business, which requires the family business to be owned and controlled by lineal descendants of the transferring person.
Work with a Pickering Real Estate Agent: Find Your Pickering REALTOR® at Bansal Team!
Buying a home can be a long and drawn-out process, but it is one of life’s biggest decisions that will bring great satisfaction in the end. It’s vital that you acquire expert guidance to make sure everything goes according to plan and to ensure your offer is as attractive and worthy as possible.
With the Bansal Team, you can work with a real estate agent in Pickering who can help you navigate the seller’s market and find the best prices for homes in the area. Most importantly, we will make sure you only enter into a legally binding contract after fully understanding the terms and conditions. We’re here to make buying or selling real estate smooth for every client. Contact your Pickering REALTOR® at Bansal Team today!