Making an Offer on a House? Here's How to Stand Out
Prices are up, single-family homes are in short supply and real estate transactions are fast and quick.
When it comes to Toronto real estate, it's a sellers' market.
To stand out in this crowded field of buyers when making an offer on a house, here are some real estate tips to make sure your offer on a house gets taken.
When making an offer on a house, bring a preapproval letter
A preapproval letter shows you are serious. With a specific dollar amount detailed on an official preapproval letter, a seller knows you have the secured cash to back up your offer.
Yes, these letters take time to get. That's because they are essentially proof of securing a mortgage, a complex process.
Before you start the preapproval process, learn what sort of mortgage payments (including tax and insurance) you can make over the next several years.
Use this handy mortgage calculator to see your monthly payments and discover how closing costs and monthly expenses change your ability to pay.
Choose a real estate agent with proven experience at closing time
Making an offer on a house is something best left in hands of a seasoned real estate pro. We offer a unique "no pressure" approach for North Toronto real estate buyers and sellers.
What's that mean?
For buyers, we practice patience and diligence in securing properties that will meet your family's needs and dreams over the next several years. For first-time buyers, we offer extra help to walk you through appraisal, inspection, escrow and closing.
For sellers, we work to get your house aggressively marketed in a range of sales channels. We listen to your needs and help you vet offers from multiple buyers.
Come to the table with a security deposit
Any set of real estate tips will tell you a security deposit is a traditional show of consideration from buyer to seller.
If you plan on making an offer on a house, providing a larger down payment than your competing buyers makes you stand out in the crowded Toronto real estate market.
Plus, it's a not-so-subtle signal of your financial strength. And it's a way of showing the buyer that this is a sale that is going to close.
Remember, your buyer may have already been burned, one or more times by an offer that went under contract, only to unravel a few weeks later.
Learn the seller's needs —then work with them
Some sellers are in a hurry — they may have just bought a house themselves.
Other sellers may budge on a price if the buyer is willing to overlook a few minor improvements (new windows, wall paint, carpet, etc) that another buyer is trying to stipulate in their contract.
The speedier and more streamlined you can make the seller's next steps, the more likely they are to take your offer.
What should first-time buyers know about making an offer?
The Canadian government provides several incentives to first time buyers. Some first-time buyers programs offer down payment assistance as well as tax credits and rebates for first-time buyers.
These programs help new home buyers come to the table with a larger down payment and outside assurances that you can meet mortgage requirements.
So take advantage of these programs. And take advantage of our wealth of insider knowledge on making an offer on a house in the Toronto-area market.