Making An Offer To Purchase
Once you have found, viewed and inspected a home that you are interested in owning it is time to make a purchase offer to the seller. There will be an asking price, which you can offer to meet, exceed or make a lower offer. Your offer depends on market conditions such as the number of other bidders that want the home in question.
Before making an offer, we always consider the following:
- Price – there will be an asking price set by the seller, which you can choose to meet, lower or exceed.
- Typically, meeting the asking price is recommended unless there are other bidders present, in which case we advise bidding higher than the asking price. Sometimes, offering lower than the asking price is advised but only if there are no other bidders or the home has been overvalued by the seller.
- Deposits – making a deposit is a sign of good faith and will count towards the purchase price if you close the sale. A typical deposit is at least 5% of the purchase price.
- Purchase conditions – there are a set of standard conditions that are often used during a home purchase including: subject to home inspection, subject to selling an existing property, subject to qualifying for financing and more. Home buyers can generally include any purchase condition but should keep in mind that sellers will not appreciate having to wait too long for purchase conditions. The less conditions that are required, the more likely it is that your offer is accepted by the seller.
- Inclusions & Exclusions – making an offer contingent on certain items such as appliances or fixtures being included in the sale.
- The closing date – sellers will often choose a date on which they would like any purchase offers to close by. The closing date means the day that a property’s title is legally transferred to you (buyer) and the seller receives the funds form the transaction. We recommend matching the seller’s chosen date for the best chance of having your offer accepted.
If you have any questions or concerns making an offer, our real estate experts can explain everything and guide you through the process.