The Process of a Home Purchase Offer and Negotiation

STEP 1. RESEARCH AND PLANNING


Depending on market conditions, you may have to act quickly, before another buyer steps ahead of you. That said, the best way to approach a home purchase is to arm yourself with facts and to plan a negotiating strategy. I can assist with this.

When deciding what to offer for a property, current market prices are the most important factor. I can provide valuable assistance in this regard—counselling you on market conditions, price ranges, comparable properties, and appropriate negotiating strategies.

STEP 2. SUBMIT AN OFFER
Real estate transactions require a written contract, which conveys an initial written offer. A cheque for the deposit usually accompanies an offer.

Your offer will specify price, plus all the terms and conditions of the purchase you want to negotiate. I will provide a valuable service by helping you use standard forms that are kept up-to-date with changing real estate laws, which vary from province to province, by explaining the negotiating impact of including various terms and conditions



 STEP 3. THE SELLER’S RESPONSE


When your offer is presented, the seller’s options are to:

Accept. If, after reviewing your written offer, the sellers sign their unconditional acceptance, then you will have a binding contract as soon as you are notified of the offer’s acceptance.

Reject. If the sellers reject your offer, you are released of any obligation. The sellers cannot later change their minds and expect to bind you to a contract based on that offer.

Counteroffer. If the sellers like most aspects of your offer, they may present a written counteroffer that includes the changes the sellers want to make. You are then free to accept their counteroffer, reject it, or make your own counteroffer to their counteroffer. This process can repeat itself as many times as it takes for you and the sellers to agree on the sales contract. At this point, negotiations are over and the terms of the sale are final.


It is important to note that the negotiating process always moves forward; buyers cannot decide at a later time to accept a counteroffer that they previously rejected. If the property is still available, buyers must reinitiate negotiations by submitting a new offer.

WITHDRAWING AN OFFER

Can you take back an offer? Offers in Ontario usually have a clause outlining the irrevocability of the offer.  The irrevocability is the time and date to which the person who makes the offer is bound, so they cannot withdraw it before that time.  If the other party counter offers, then the irrevocability of the previous offer does not apply.  There will be a new irrevocable date and time for the new offer.

Contact me today for a free Homebuyer's Toolkit or to talk about real estate!