How to Make an Offer on a House

| Buying

This is the most thrilling moment for not just you buyers out there, but us real estate teams as well! While you wait with bated breath to find out if you’ll finally secure your dream home, we’re all about the thrill of the deal. Here we share our insider tips on how to make an offer sellers can’t refuse when buying a house.

Our Checklist Before Making an Offer on a House

That moment when you find “the one” is elating and terrifying! It’s always best to proceed with caution using our close-to-fail-proof checklist before making an offer:

Gut check

Whether it’s the charming curb appeal of a little bungalow in East York or the lake views when you step into an Etobicoke condo, that feeling deep in your gut is often a very trusty sign you’ve found the one.

Reality check

There is no such thing as a flawless home. Our job is to make sure you know all the pros and cons of a property to ensure you make a smart decision.

Check & check

Review your nice-to-have versus must-have checklist to make sure the home meets all your practical needs.

Price check

We never show our clients a home that doesn’t align with their budget. However, there are some golden opportunities we spot that could bring a home slightly out of your reach into your reach with smart negotiation. We’ll seek out those rare but not unheard-of listings whenever we can.

Looking for your dream home? Read our blog 10 Signs a Home is ‘The One’ to find out key things you should look for.

The Core Components of an Offer

There are two core components of an offer:

  1. The price: In a buyers’ market when inventory is high and the market is slow, you’ll get away with lower offers. In a seller’s market when there is limited inventory and higher competition, pricing needs to be far more enticing. We know the market right down to the street and ensure your offer is tempting.
  2. The terms & conditions: The terms and conditions include the details of the sale, such as:
    • Home inspection
    • Financing
    • Legal review
    • Status certificate review for condos
    • Appraisal to confirm the home’s value
    • Special requests for “chattel” such as window coverings, appliances, etc.
    • Closing date

Do you have more questions about buying a home? We’ve covered the basics (and not so basics) for you! Here are a few more posts to check out: 

The Steps When Making an Offer on a House

Once we compile your offer, we go through the following steps of the home buying process:

  • Registration: We register your offer with the Selling agent’s brokerage. The broker tracks all offers and sets a formal presentation date and time.
  • Presentation: At the presentation, we make your offer seem as generous and reasonable as possible. You wait at a nearby café so we can quickly update you on the negotiations.
  • Negotiation: There are three possible case scenarios during negotiations:
    1. Acceptance: This is the dream scenario where the sellers happily accept all terms and conditions. The agreement is signed, and, as long as all contingencies go as planned, you just bought yourself a home.
    2. Counteroffer: In this case, the seller rejects your original offer but suggests changes that make the agreement more appealing to them. This is often a higher price or a different closing date. We leave wiggle room in the price whenever possible, so you can be more generous in accepting counteroffers. If you had something specific in the offer, such as including appliances, they might refuse to include them. This is par for the course!
    3. Declined offer: This is, of course, the worst-case scenario, where the seller finds your offer unacceptable. They can decline right off the bat or mid-negotiation if they feel their needs will not be met.

Is a deposit required when making an offer on a house?

Yes. Typically, the buyer makes a 5% deposit as an act of good faith. The listing broker holds the deposit in trust until the agreement is signed or rejected. The deposit is then deducted from your down payment at closing or returned.

Still have home buying questions? Here are a few more posts you might find helpful: 

How long after making an offer on a house do you hear back?

It depends on the “irrevocable period” and the seller’s timing. The irrevocable period is the amount of time given for the seller to respond to your offer. The period is usually about 24 hours, after which time your offer expires. The seller might take their sweet time or respond within an hour, depending on their needs and the market.

How long does it take to make an offer on a house?

The process to present your case to the seller and their agent usually takes less than half an hour. The negotiations, however, can take much longer if the conditions, terms, or price start a prolonged back and forth.

Do you have questions about buying a home in Toronto? Looking to work with the best real estate agents in Toronto for your next home purchase? Get in touch with The Christine Cowern Team at 416.291.7372 or email us directly at hello@christinecowern.com.