Making an offer on a house is an exciting adventure, but there is an art and a science to getting it right. There are numerous aspects to an offer, and all must align with the current market for a seller to consider accepting your deal. This means that your price and any conditions must be competitive in a seller’s eyes. However, it is still essential to protect your own interests at every stage in the process. How do you balance your goals with the seller’s priorities and buy the home of your dreams? You’ll find the answer to all these questions and more in this detailed checklist for how to make an offer on a house.
Do you want a seamless and straightforward home buying process? One of our detailed buying guides will help!
How Long Do Buyers Wait to Make an Offer?
How long buyers wait to make an offer depends on the market and the circumstances. If you tried to buy a house from 2020 to 2022, during the fierce seller’s market, you may have noticed an anxiety-inducing trend.
Many sellers wouldn’t even entertain an offer until the home had been on the market for a specific amount of time, usually around 7 days or so. This practice is called setting an offer date. The idea is to get as much exposure for the home as possible and ideally trigger multiple offers on the property.
In a market more in favour of buyers, homeowners typically consider offers anytime. Attempting to set an offer date in these conditions can backfire on the seller. Especially if there is minimal interest from potential buyers.
When deciding how and when to place an offer, it’s important to first consider the market. Your goal of buying a house may not change, but the way you go about it likely will. A local real estate agent with experience in all types of markets can guide you to the best path so that you get the home you want at the lowest possible price.
Are you in the early stages of the home buying process? Your location is one of your most critical decisions. Begin your research with the posts below:
What Is a Conditional Offer?
If you want to buy a house, but are only willing to agree to the terms if a certain condition is met, then you will place what is called a conditional offer. These are more common in a buyer’s market when you are not up against competing buyers. If the existing homeowner has numerous options, putting conditions on your offer can hurt your chances of success.
Once again, it’s important to consider the market overall as well as the smaller picture: The specific house you are considering. The news headlines might report a hectic seller’s market. Meanwhile, the area you are looking in may be calmer and in less demand. Either because it’s out of the price range of other potential buyers or they haven’t yet discovered the neighbourhood.
Sometimes, you will have hidden advantages even when it seems that everything is working against you. A local real estate agent is the key to making the most of your position regardless of the market.
If you’re not in competition, you might decide to include a condition of home inspection to protect your investment. Conditions of financing and the sale of your existing property are also commonly used. Just keep in mind that too many conditions can weaken your offer. It’s all a highly nuanced balancing act.
Are you excited to start making offers? Our featured listings page is an excellent place to identify top contenders for your new home.
What Is A Firm Offer In Real Estate?
A firm offer is also known as an unconditional offer. It means that if the seller likes the price, the closing date, and other terms, they will accept your offer, and the deal goes through. This can greatly enhance the chances of a seller accepting. However, you will need to do your due diligence to ensure that this house is the right option for you.
Even if you can’t make a home inspection a condition, you could arrange one on your own time and at your own expense before you place your offer. During exceptionally busy markets, you may have no choice but to drop all conditions entirely. If that happens, your real estate agent can guide you as to how you can protect your interests as best you can.
What Is A Counteroffer In Real Estate?
Imagine you make an offer on a home at a price of $500,000. Then, the seller comes back asking for $550,000. This is what’s known as a counteroffer.
It puts the ball back in your court, and you will have a deadline as to whether or not to amend your original price. If both parties agree, the offer becomes an Agreement of Purchase and Sale (APS), and is now legally binding.
There’s a lot to think about before finalizing the right home for your needs. The posts below can help you make an informed decision:
- Title Insurance in Canada: What It Is, Why It Matters & How We’ve Got You Covered
- How Much Does It Cost to Buy a House
- Checklist for Buying a Home
How Much To Offer On A House
Now, we come to the very essence of this entire post on how to put in an offer on a house: the amount of money you are willing to pay. If you come up with a number that’s too high, the seller will be thrilled, but you will overpay for your home.
On the other hand, if you insult the seller with a lowball price, they may no longer even wish to negotiate with you. This is why it’s important to sit down with your agent and review recently sold comparable homes.
The comparable homes will not necessarily be an exact replica of what you are purchasing. Nevertheless, your agent will help you determine a price by adjusting for any inferior or superior features.
They’ll also provide stats to show you how much the market has changed since the most recent comparable sale. You want to make sure that the house you are buying is not overpriced, and that you are being treated fairly.
If you are in a multiple-offer situation, you will probably need to go above the asking price. But it is still important to review comparables to make sure that you’re not going higher than necessary.
On the other hand, if a house has been on the market and has had several price reductions, this could be a great opportunity for you to go under the list price and get a great deal. As always, it’s critical to proceed with caution and under the guidance of an experienced professional with a pulse on the market.
Do you want personalized assistance and expert guidance throughout your transaction? Our top Guelph real estate agents are here to answer all of your questions. Reach out today at info@gowylde.ca or call 519-826-7109 for more information.
