Congratulations! You’re Ready to Make an Offer on Your Dream Home!
Before we can submit your offer, we need a few details from you. You can email, text, or fill out a form with your answers (click here to fill out the form):
1. Full Legal Name: Please provide the full legal name and email address of anyone who will be on the contract. Make sure it matches their driver’s license, as this will be needed at closing.
2. Initial Offer Price: What price do you want to offer initially? I will provide comparable sales for you to review and give my opinion, but the final decision is yours.
3. Maximum Price: Decide the highest amount you’re willing to pay for the property. We won’t share this with the seller, but it helps us guide you during negotiations.
4. Closing Date: Typically, closings take 30-60 days from contract acceptance, with 45 days being the average. Let us know your preferred closing date, keeping in mind it must be on a weekday (Mon-Fri) and not a holiday.
5. Deposit: How much deposit are you comfortable putting down? Typically, it’s 5% of the purchase price. Depending on the situation, deposits can be given at the time of offer, within 24 hours after acceptance or as otherwise written. we will discuss this further when we’re there. Deposits are part of down payment and MUST be in your bank account at least 90 days to be accepted by the lender or bank.
6. Down Payment: How much will you put down for your down payment? Examples include 5%, 10%, 20%, etc. Downpayment below 20% needs to pay an extra default insurance fee which varies starting from 2.4% and can be added to the mortgage. The 8% GST for the insurance needs to be paid upfront as part of the closing cost. Budget for it if you’re not putting 20% down.
7. Closing Costs: The typical closing costs range from 1.5% to 7% depending on what type of property you’re buying. Please advise us when we meet so we can adjust the calculation of your closing cost so there’s no surprises on closing day. The biggest chunk of closing cost goes to land transfer tax. Depending on whether you’re a first time home buyer and/or if you’re buying in Toronto, an additional municipal land transfer tax may be added. First time home buyers may be able to get a rebate. Let us know if you’re a first time buyer and moving to Toronto when we meet so we can advise you accordingly.
8. Conditions: Do you have any other conditions, such as needing to sell your current home before buying this one? Do you need a mortgage to buy this property? Would you like to get a home inspection? These are conditions that we will put in your offer depending on your situation.
9. Changing Your Mind: If you want to know what happens if you change your mind or if the inspection reveals a major issue, read here for information on exiting a signed contract.
Review the Contract:
Once you have your answers ready, email, text, or submit them via the form. We will then prepare the contract (offer to purchase agreement) and have you sign it using DocuSign. We will review the purchase agreement via Zoom or over the phone to ensure that we get everything down to a tee.
Remember, negotiations can take 24 hours. Some sellers decide quickly, while others take their time. Patience is key to maintaining a strong negotiating position.