Frequently Asked Questions For Home Buyers

How long will the negotiations take?


Usually, negotiations are wrapped up within 24-48 hours or longer depending on the number of times the offer is countered until an agreement is reached.

If the seller accepts my first offer, am I forced to buy? Shouldn’t we have then offered lower?


No, unless we are writing an offer without conditions which is REALLY unusual and we would talk about this before presenting the offer. You will have a time frame of typically 5 business days to investigate whether or not this home will be acceptable to you. If you don’t like something you find out about this home during that period of time, we will be able to walk away and the contract will be null and void.

How low should we offer?


This is a strategy question and the answer is that it depends on too many factors for there to only be one answer. There are times when an offer at 5% off of list price is perfectly acceptable and appropriate. Similarly, there are times when an offer above list price is appropriate. When we sit down to prepare an offer, we will discuss this topic at length.

What if there are other offers? Will I know what they are offering?


When an offer is received, the listing REALTOR® has a duty to have the offer presented “without delay.” Furthermore, offers have an expiry clause, meaning that if the seller does not respond before a certain time, the offer expires. There are occasions when homes attract multiple offers. We’ll talk through detailed strategy should this happen, but here are some basic things to know:

When you submit an offer knowing that there is another offer, you will likely only get one chance to offer. In other words, it is rare to see counter offers made at this point, it is assumed that buyers are offering their best terms and the seller will typically just choose an offer.

In order to make your offer as competitive as possible, we will want to ensure that we have as few conditions as are necessary to properly protect you. We are offering as high a price as you are comfortable with and we are offering the completion/possession dates that most closely match what the seller is looking for. The seller will typically, not disclose the price they have accepted (for fear that it will jeopardize future negotiations should this offer collapse). You will not know what others are offering. All terms of an offer are confidential.

How many counter offers can we make?


As many as you’d like; however, our experience has proven that once we get past 3 counter offers from either side (5 - 6 total counter offers), our chances of reaching mutually acceptable terms start to diminish. Remember, the goal of a negotiation is to find mutually acceptable terms. Our goal is to find the bottom end of their acceptable price range and we will never do so if they feel like we are trying to take advantage of them.

What are the key elements to consider in an offer?


Sale price:  The price you offer may be different from the original asking price, depending on market conditions, what comparable properties in the neighbourhood have sold for or whether the Seller receives multiple offers.

Deposit:  The deposit demonstrates your commitment to the Seller to complete the purchase. It is reassurance that you are acting in good faith. There is no minimum standard amount; however, it’s usually 5% of the purchase price, that is then applied towards the purchase price.

Closing (Possession Date):  This is the day the title to the property is legally transferred from the Seller to you, the buyer, and the transaction of funds finalized.

Irrevocability: This is the date that the offer expires. No terms and conditions can be changed in the offer, unless mutually agreed upon in writing.

Title Search Date:  This is the last date your lawyer has before the property closes, to search the title and make sure there are no problems or issues with the legal ownership of the property.

Inclusions & Exclusions:  What you, the Buyer expect the Seller to leave at the house, and what the Seller will take with them.  Generally, this list is taken directly from what was already stipulated on the MLS® listing for the home, though you might ask for more in the offer.

Conditions: Stipulations in the your offer that must be satisfied before the deal is legally binding. 

Get In Touch

Mirjana Spehar

Phone: 9056371700

Email

Office Info

Right At Home Realty Inc.

5111 New St.  Burlington,  ON  L7L1V2 

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