How To Make An Offer On A Home

Posted by Nutan Brown on Thursday, September 15th, 2022 at 3:10pm.


If it’s your first time entering the real estate market, or if you haven’t been in the market for a while, you might be wondering what the steps are in order to buy a home. Since the process can be complicated, we’ve outlined the main things you need to know when making an offer.

Mortgage

Unless you are paying for your home in cash, the first thing you will want to do is get a mortgage preapproval. Although you won't need the mortgage until you purchase a home, getting preapproved will allow you to know exactly how much you can afford and offers the seller reassurance that you will not back out of the deal based on financing.

Negotiation

Be prepared to negotiate when you’re ready to make an offer. Your negotiating power will depend on a few factors such as the current market conditions, neighbourhood, comparables in the area, etc. A real estate agent is particularly useful since they have experience in both the current market and in negotiating these types of deals.

Down Payment

Once the seller has accepted your offer, a deposit of 5% minimum is expected to be delivered within 24 hours of acceptance by certified cheque, bank draft or direct deposit. These funds will be held in trust by the listing brokerage until the day of closing, when they will be applied to the purchase price.

Legal

A real estate transaction requires a number of legal documents and paperwork. As a buyer, you can take the offer to a lawyer for review before signing it to make sure you cover all your legal bases. After all, buying a home is a big deal and you want to make sure it's done correctly to avoid any unexpected surprises.

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