Making An Offer? Keep these items in mind.
Prior to making an offer, we will have discussed agency with you, and you will have chosen in which capacity you wish Lakeview Realty Inc., to represent you. (Either as a customer, or a client).
Deciding & Preparing
When it comes time to make an offer, (and assuming you have chosen to work with us as our client.. a buyer broker relationship), we can provide information and advise as to the current market information to assist you in making your decisions.
Major elements of a real estate offer:
This depends on the current market conditions, but generally, in a normal or buyer’s market, the price offered by the buyer is different from the asking price. In a seller’s market, however, (and if there is more than one offer), the offering price is often over the list price.
The deposit shows the buyer’s good faith and will be applied against the purchase price of the home when the sale closes. Between 5% and 6% is a bit of a benchmark in the City of Toronto. A Lakeview Realty Inc., Professional can advise you as to an appropriate amount.
Includes the total price and deposit which the purchaser is offering as well as the financing details. The buyer may be arranging their own financing or may ask to assume your existing mortgage if you have an attractive rate and term. (Usually in a market when rates are higher)
These might include “subject to home inspection”, “subject to the sale of the purchaser’s property”, “subject to obtaining satisfactory financing” etc. In a seller’s market, try not to have any conditions. Work out all the details ahead of time.
Inclusions and Exclusions:
These might include appliances, certain fixtures such as light fixtures, heating systems, air conditioning, window treatments etc. If there is something you are not sure about, spell it out. Don’t get caught up on the little things. You are purchasing a home, not chattels.
Closing Or Possession Date:
Generally the day the title of the property is legally transferred to the buyer, and funds are received by the seller. (unless otherwise specified).
You may have made the offer conditional on certain events occurring (i.e. financing/inspection/ sale of purchaser’s property etc.). This is not recommended however if it is a seller’s market and you are in competition. The offer will be prepared, after discussing the details with you.
Presentation & Negotiation
We will then present and negotiate the offer to and with the Vendor on your behalf, along with the listing broker. As mentioned, in a seller’s market, there will often be more than one offer and you will be guided and directed through this process.
The vendor will then have the choice of accepting, rejecting or countering your offer. The counter offer could be for any number of reasons (i.e. the price, conditions, closing date or any other items).
The offer can be countered back and forth until an agreement is reached or the negotiations cease.
Acceptance & Closing
After an agreement is reached, the parties acknowledge receipt of a copy of the agreement. You will continue to be assisted with satisfying the conditions, delivering copies to the lawyers and following through with you until after the transaction closes… and beyond.