Finding your dream home is easier said than done; once you’ve found the perfect place, landing it is an entirely different story. While the process of buying your new home can be enjoyable, it also comes with its share of challenges.
When it comes to real estate in Ontario, things are constantly changing. In some ways, buying a home today is a different process than it was even two years ago. As a buyer, being aware of the latest market trends can help you be successful when submitting an offer.
Here’s everything you need to know about submitting an offer on a home in today’s marketplace.
Working With an Agent
First and foremost, working with a great real estate agent is a crucial part of successfully buying a home, especially in a seller’s market. Not only can an agent help you find an amazing home, but their expertise and insights can make a big difference in the buying process.
When the time comes, your agent’s knowledge and recommendations will dictate the main elements of your offer. As your advocate, they’ll ensure your initial offer is appropriate based on market trends and the property itself. Following the initial offer, their experience with negotiations can help secure a deal that works in your favour. Finally, your agent will guide you through the last steps of the closing process.
About to begin the search for your new home? Explore these helpful resources first.
- How to Know When You’re Ready to Buy a Home
- How to Make Your Move as Budget-Friendly as Possible
- What to Look For in a Home Viewing
What Makes an Offer?
Before you begin your home-buying journey, it’s important to understand the basic elements that go into an offer. This can not only help you draft offers confidently, but it can also save precious time if you’re competing against other buyers. While no two offers are identical, there are some common elements you can expect when the time comes.
- Basic Information – Your legal name, the seller’s name, and the property address
- Price – The total amount you are offering to pay for the home, plus a deposit amount
- Closing Date – The day you would like to take possession of the home
- Expiration Date – The day on which your offer expires
- Conditions – Sometimes referred to as contingencies, these are special stipulations that must be met or verified before the sale is finalized
- Inclusions – This is anything that you would like to be included in the home purchase such as large pieces of furniture or appliances
These are just the most basic elements, and your agent will help you draft the best possible offer based on your unique circumstances.
Prepare Your Finances Ahead of Time
After you’ve found your perfect home, there are a few things you can do to create a stronger, more compelling offer. For instance, getting pre-approved for a mortgage will let the seller know that you’re financially capable of owning the home. In addition to this, having an appropriate or sizeable down payment ready to go can make sellers feel secure in your offer.
Want to learn more about financing your new home in 2022? Explore our blog post on rising interest rates here.
Be Competitive
As you may expect in a seller’s market like Ontario, a great home will typically have more than one interested buyer. If you’re serious about landing your ideal home, be ready to be competitive. This means you may need to tailor your offer to the seller’s benefit.
Here are some common ways you can strengthen your offer.
Perhaps the most effective way to be competitive is with your money. Offer above the home’s asking price and include a strong down payment amount. Here’s where preparing your finances early on pays off.
Next, limit the conditions attached to your offer. This will appeal to sellers who are looking to limit variables and additional stress with the sale of their home. If you’d like to go a step further, submit a ‘clean’ offer that is totally free of conditions.
A Note on Bully Offers
If you’ve been tuned into conversations about Ontario real estate for some time, you may have heard about bully offers. In short, a bully offer is an extremely competitive, often condition-less offer made to a seller before the official offer date.
While not every buyer is comfortable submitting a bully offer, it can be a useful way to land your ideal home quickly in a competitive market. Your real estate agent can help you determine if this route will work for you.
Throughout the buying process, your agent will help you determine which steps can help your offer stand out from the competition and be your best resource for insights and information.
Thinking about buying? Get in touch to find out how our expert agents can help you land your dream home!
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