A house is a big purchase, and not just in terms of price. From exploring listings and attending showings to negotiating the terms of your deal and eventually closing the transaction, there’s a lot that goes into the actual buying process.
With that in mind, one of the most important parts of buying a house is the offer. A good offer can be the difference between successfully landing your dream home and being turned away. Before you head to the market, you’ll need to know how the process of placing an offer works and what you can do to make yours more appealing to sellers. That’s where I come in.
As a Realtor with more than 3 decades of experience, I’ve helped hundreds of home buyers throughout my career. In this blog post, I’m sharing my best advice on how to put an offer on a house.
Understanding Offers
Real estate transactions are not like any other type of purchase. You can’t simply walk up to a seller with cash in hand and buy the home right then and there. Instead, you’ll need to submit a formal offer to purchase.
Let’s say you find a house you’d like to buy. First, you and your real estate agent will discuss key details, such as how much you are willing to offer for the property, when you’d like to move in, any conditions you’d like to include, and more. From there, they will draft the formal offer document and submit it to the seller.
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What Goes on a Buying Offer?
In Ontario, every offer to purchase must include a range of basic elements.
For starters, you’ll need to outline some of the basic information about the house and who is involved in the proposed transaction. Including:
- The names of the buyer(s) and seller(s).
- The property address.
- The offer presentation date.
- The offer expiry date.
Next, the offer must also include the major transaction variables proposed by the buyer. Specifically:
- The purchase price.
- The deposit amount.
- The possession date.
Optionally, the buyer can also add any specific conditions to their offer. These stipulations must be clearly defined in the offer document to be considered valid.
What Conditions Should I Put on a House Offer?
Like the other elements of your offer, choosing conditions comes down to your personal preferences and goals.
That said, most buyers choose to include a home inspection condition at the very least. This allows you to have the property inspected before the deal is finalized. If any major issues come up, you can potentially negotiate parts of your offer.
If there is a lot of competing interest in the home, you may choose not to include any contingencies at all. Although this strategy has its risks, it can give your offer a slight edge over others.
Do You Need to Submit a Personal Letter With Your Offer?
At the height of the Greater Toronto Area’s seller’s market, home offer letters became a more common tactic among home buyers. These were essentially personal letters sent alongside the buying offer, designed to tug on the seller’s heartstrings in hopes they would accept the offer over someone else’s.
These emotional pleas were actually fairly effective in certain circumstances, but they’re far less common in today’s market. If you find yourself placing an offer on a home with a high degree of buyer interest, your real estate agent may suggest including a letter, but it’s not a must-do for every buyer.
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What Happens After Your Offer is Placed?
One of the most nerve-racking parts of placing an offer can be the waiting. When you submit your offer, you won’t hear back right away. Sellers typically take their time reviewing offers as they come in. Depending on the unique circumstances, you may need to wait up to three days to hear back from the seller.
If they like your offer, the seller can either accept it or make a counteroffer. Should they counter, you can accept that number or work with your agent to negotiate a new price.
Work With Me to Find Your Perfect House
When you’re ready to find your dream home, you’ll want to partner with a local real estate agent who understands the local market. That’s where I come in! For more than 30 years, I’ve helped families across Oakville and the Greater Toronto Area make the most of their purchase – and I can do the same for you.
Not only do I have the unique insights and expertise to help you navigate the market strategically, but I also strive to make the house-hunting process as fun as possible.
Searching for a great home? I can help! To get in touch, call 905-464-7653 or email me at stacey@staceyrobinson.com.
At Your Service
I’m here to guide your real estate venture with an education to empower you. Let’s chat about what your needs, and I’ll tell you how I can help you meet them.
