Buying real estate is incredibly exciting. You may already have found your dream home. Perhaps you’ve already started thinking about how you want to decorate your new dream home, paint colours, furniture, the works. But before you get into your newly purchased home, you need to make an offer to the sellers.
Before considering buying real estate, you need to ensure you are pre-approved for a home loan. Not only does this give you a general idea of how much money you will be able to borrow for your purchase, but it also helps the process of making an offer and purchasing real estate much smoother.
Making an offer isn’t as simple as deciding on an amount to offer the sellers for their property. There are a few factors to consider before you choose to purchase your home. You need to consider other buyers may have their hopes set on the same house as you do, the sellers may not accept your offer, or the inspection/appraisal may go south.
The first thing to do once you are ready to make an offer is talk with your Spectrum Realty agent. Your best bet is to let our qualified agents walk you through the process step-by-step to ensure you are getting the most out of your purchase. Your Spectrum Realty agent will offer guidance in making your offer with a fair price and terms.
After discussing your desire to make an offer to purchase real estate to your Spectrum Realty agent, the following process is how offers usually occur.
The terms and conditions involve what you want to offer the seller. This includes price, conditions, closing date and terms.
Next, you will sign the paperwork for the agreement of purchase and sale; this is the formal offer to the seller. During this step, you will sign a significant amount of paperwork.
The offer you make is time-sensitive, it is valid for a specific amount of days, this is called the irrevocable period. It is the given time the seller must look over and contemplate the terms of your offer. If the seller has not accepted your offer within the irrevocable period, your offer will be null and void. In markets such as Toronto, the irrevocable period can be as short as a few hours so once you enter this phase the purchase of your property can go very quickly.
Once the agreement of purchase and sale is signed, your Spectrum Realty agent will officially register your offer. This paperwork is telling the seller's agent’s office that there is a signed offer from a buyer. The terms, price, and conditions of the offer are kept private at this stage. Keeping the offer private ensures every offer is trackable and fair, especially when there are multiple offers on a real estate property.
In this step, your Spectrum Realty real estate agent will formally present your offer to the seller and their real estate agent. Typically, this process takes around 15 minutes or less. You want your agent to present your offer to ensure he/she can submit the proposal in the best way possible. Explaining the reasoning behind the terms, conditions, and pricing of your offer. A formal offer presentation can occur in person, via email or by fax.
The seller now has your formal offer in hand; they can do one of three things. They can accept your offer as it stands, they can counter offer with different terms, or they can decline the offer altogether.
If the seller accepts your offer as you presented it, that means they agree to the terms and conditions you set forth. It merits congratulations as you are now well on your way to owning your dream property.
The seller could also counter your offer, for example offering you a different price, closing date or something similar. This scenario is the most common when it comes to negotiating an offer. There can be quite a few back-and-forth terms and conditions that go between the seller and buyer during this time. Typically, each side, the buyer, and the seller both, will make concessions on their terms and conditions until they reach a middle ground.
The last option a seller has is to decline your offer; this means your offer was not acceptable to them at all. They may reject the offer due to a “low-ball” offer or multiple other reasons. The bottom line here is the seller isn’t interested in your offer.
Considering buying a residential property or commercial property is an enormous undertaking. With the assistance of your exceptional and experienced Spectrum Realty agent, you can move forward with the purchase of your ideal real estate property with confidence.
To schedule an appointment with us to view your dream home call 416-736-6500 or contact us here.
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The information provided herein must only be used by consumers that have a bona fide interest in the purchase, sale or lease of real estate and may not be used for any commercial purpose or any other purpose.
Information is deemed reliable but is not guaranteed accurate by TREB.
Toronto Real Estate Board - IDX Last Updated: 9/23/2018 1:26:10 PM