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An Ontario Realty Brokerage's Guide to Making the Perfect Offer on a Home

If you have any questions or would like more information about making an offer please Contact Us. If you are planning on buying or selling a home or property please visit our Buyers Page or Sellers Page.

Making the Perfect Offer on a HomeWhen you’re ready to make an offer, a registered Greater Toronto real estate sales representative will be able to provide you with current market pricing and assist you in drafting the most effective offer for your situation. He or she will then communicate the offer, sometimes known as an “Agreement to Purchase and Sale,” to the seller's agent representative on your behalf. Sometimes there may be more than one offer on a property coming in at the same time.

A top Ontario real estate agent or broker based in the GTA can guide you through this process, and can also help you understand the following key concepts:

 

Firm Offer to Purchase

This is a type of real estate home offer that is usually preferable to the seller, because it means that you are prepared to purchase their home without any conditions. If your offer is accepted by the seller within the stated irrevocable time and date, the home is sold to you.

 

Conditional Offer to Purchase

This alternate type of offer usually means that you have placed one or more conditions on a firm purchase, such as "subject to home inspection", "subject to financing" or "subject to sale of buyer's existing home." If this type of offer is accepted, the home sale cannot be completed until all of the conditions have been met and waived by the subject party.

 

Acceptance of Offer

Any home seller has three options when they are presented with an offer: they may accept the offer, reject it, or submit a counter-offer. The counter-offer may contain adjustments to the proposed price, the closing date, or any number of variables. The offers can go back and forth until both parties have agreed or have decided to end negotiations.

 

How much should I Offer on a Particular House or Condo?

Many factors come into play when you are deciding on your the initial offer. Some real estate agents may advise that you should always offer 10 per cent less than the asking price of the home. Unfortunately, following this route could end up with you sitting in second place on the list of buyers for that competitively priced "perfect" home for your needs. In addition, you could run the risk of offending the Seller and souring your chances of striking a fair offer. A well-trained and experienced agent would provide advice on a case-by-case basis.

Lastly, here are some important considerations you should take into account when trying to determine the value of your initial offer on a home:

  • How long has the property been on the market?
  • If you are considering a new listing, how competitively priced is the property?

Can your agent provide you with any insight as to the reasons the Seller is selling?

Current market conditions can play a major role. A registered Ontario REALTOR® actively engaged in the Greater Toronto real estate market is likely to have a very strong knowledge about the area, as well as up-to-date information on all factors in the market.

 

Want to know more?

If you are looking to make an offer on a home in the GTA but have questions about where to begin in determining the offer amount, you should get in touch directly with a real estate sales representative who can walk you through the offer process. CLICK HERE or visit one of our offices to get in touch with the top GTA real estate sales representatives and brokers at Living Realty.