Etobicoke Homes Blog

So you've been searching for that perfect house to call a 'home' and you finally found one! The price is right, and in such a competitive market you want to make sure you make a good offer so that you can guarantee your dream of making this house yours comes true!

1. Understand How Much You Can Afford

"While it's not nearly as fun as house hunting, fully understanding your finances is critical in making an offer."

This 'tip' or 'step' really should take place before you start your home search process.

As we've mentioned before, getting pre-approved is one of many steps that will show home sellers that you are serious about buying, and will allow you to make your offer with the confidence of knowing that you have already been approved for a mortgage for that amount. You will also need to know if you are prepared to make any repairs that may need to be made to the house (ex: new roof, new furnace).

2. Act Fast

"Even though there are fewer investors, the inventory of homes for sale is also low and competition for housing continues to heat up in many parts of the country."

According to the latest Existing Home Sales Report,  for November 2016 the inventory of homes for sale is down from last year. For detached Homes Active listings are down 18% with the days on market from last year to this down to a 13 DOM average and sales to listing price are at 104%.This shows the competition is fierce and listings move fast. Buyer demand has continued to outpace the supply of homes for sale, causing buyers to compete with each other for their dream home.

Make sure that as soon as you decide that you want to make an offer, you work with your agent to present it as soon as possible.

3. Make a Solid Offer

"Your strongest offer will be comparable with other sales and listings in the neighborhood. A licensed real estate agent active in the neighborhoods you are considering will be instrumental in helping you put in a solid offer based on their experience and other key considerations such as recent sales of similar homes, the condition of the house and what you can afford."

Consider ways of making your offer stand out! Many buyers write a personal letter to the seller letting them know how much they would love to be the new homeowners. Your agent will be able to help you figure out if there are any other ways your offer could stand above the rest.

4. Be Prepared to Negotiate

"It's likely that you'll get at least one counter offer from the sellers so be prepared. The two things most likely to be negotiated are the selling price and closing date. Given that, you'll be glad you did your homework first to understand how much you can afford. if possible you should be present at the offer presentation waiting outside and ready to act.

Your agent will also be key in the negotiation process, giving you guidance on the counter offer and making sure that the agreed-to contract terms are met."

If your offer is approved without conditions such as an independent home inspection, just so you know the true condition of the home, have a pre-inspection done if there is not one made available by a reputable inspection company. If the inspection uncovers undisclosed problems or issues, you will be prepared to address them when affordability comes into question. 

Bottom Line

Whether buying your first home or your fifth, having a local real estate professional who is an expert in their market on your side is your best bet to make sure the process goes smoothly. Let's get together and see if we can make your dreams of homeownership a reality!