Tips on Putting an Offer on a Home
Real Estate Agent should have a list of standard conditions to include in your offer. The more experienced agents will also have a set of special conditions that will make the deal a little bit better for you. Although these conditions are included in the initial offer it does not mean the seller will accept them. But its always worth a try. Listed below are just some standard conditions that you will want to include in your offer. Building Inspection Building inspections should always be done prior to purchasing a Toronto property. In general Toronto is very accepting of building inspection conditions in offers. The typical length of the home inspection condition is three days. Have an inspector lined up before a particular time frame in the offer is committed to. Make sure to have extra time once the inspection has been completed to review the results before the condition expires. Financing Be sure to get prequalified and preapproved before arriving at the offer stage.
Make sure to also look over any commitment documentation you may have received from a mortgage broker or lender. Discuss with them any restrictions or limitations that may be attached to the mortgage. You may not need to, but be sure that if you are not completely satisfied that your mortgage has been secured then it is a good idea to include an adequate financing condition. Conditions on the Sale of Your Current Property If your property has not had many showings, or has been on the market for quite some time, then you may want to make the deal conditional upon the sale of your current property Contingencies Be reasonable if you want your offer taken seriously. Trust your instincts but be realistic. Balance of Terms and Clauses Items up for negotiation include the irrevocable period, chattels to be included in the sale, and the closing date of the transaction. DEPOSIT How Much is Needed for a deposit on a Toronto Home? The typical deposit amount in Toronto is about five percent, but generally you only need to put down enough to assure the vendor that your intent to purchase is serious. If you are able to put more up front it can put you at an advantage. Larger deposits tend to impress the vendor and may get you a slightly lower price in the end. Is My Deposit Safe? The risks in Toronto are very low as the province of Ontario mandates all deposit funds be put into the brokers trust account within two days.
To ensure the safety of your deposit funds make sure that your cheques is payable to the real estate companys name, In Trust. These funds are tightly regulated with very strict laws. What Happens to the Interest? If specified in the Agreement of Purchase and Sale, the funds will be deposited in an interest bearing instrument within the trust account and any interest accrued will be for the buyers benefit. When Must the Deposit Money be Available? The Agreement of Purchase and Sale will say that the deposit must be submitted either upon acceptance or herewith the offer. NOTE, DEPOSIT FUNDS ARE A LEGAL PURCHASER OBLIGATION. If the deposit funds are not immediately available the vendor that the legal right to terminate the transaction. Another option to consider is a two stage deposit if you cannot access the total of your proposed deposit funds. About the Author: Evan Sage is an award winning Toronto Real Estate Agent specializing in working with clients who are downsizing their homes in Rosedale, and Lytton Park. Evan instills in his clients the confidence to make the right purchase or sale decision. He achieves this by demonstrating a superior knowledge of Toronto real estate and by educating his clients.