MAKING THE OFFER TO PURCHASE AND NEGOTIATIONS

We did it! Found the perfect home and now what’s next? There’s likely a million questions going through your mind right now and wondering if this is the right decision? Here are your options:

We don’t make the offer and wait…

What is the reason behind waiting? Need time for financing? Not sure if you have seen “everything”? Price is kind of high, maybe it will drop? All those are legitimate reasons but consider this! By waiting, we allow another buyer to go pending on this home, seller circumstances change and you miss out or end up in a bidding war as other offers have come in. 

We make the offer and see where it goes…

Cannot stress this enough where by submitting an offer, there’re still countless steps til the final day money is transferred and you are the new owner.  There is still the offer negotiation, satisfying financing/condominium documents review/home inspection conditions and of course making the final decision on condition date whether you are 100% satisfy and ready to move forward. This is just a first step and by no means the last step to you officially owning this home!

How do we determine True Market Value and starting offer price?

A comparative Market Analysis is an in-depth research on the following:
  • Review of the MLS Highlight Sheet to verify what is included and not included with the purchase
  • Sales History to determine any reductions or increases in price of the listing, past listing history and any historic registered sales on the MLS system. (the home may have been sold privately which will not be recorded)
  • Tax information record to determine city assessed value and taxes due/payble
  • Title review to ensure there are no additional Caveats or surprise registrations that could affect the closing process
  • Active listings search both available within the building and the overall market to determine how this home compares
  • Sold listings search for 6 months to 1 year back to see what other’s in the market have paid for a home similar to yours
  • Expired listings search over the last 90 days to see if there may be any others who have failed to sell that may potentially come back on the market
Based on our research, we can come together on a price that fairly what the home will trade for, what a great deal looks like and the highest sale price that we should move forward with this option.

Making the offer

Here’s what we will need:
  1. Confirmation who will the owners will be that will be registered on title
  2. Copy of your driver licence(s) - Text or Email
  3. Amount we want to start the offer at (purchase price)
  4. Initial Deposit (recommend $5,000 for homes under $500,000 and $10,000 for homes above) Must be accessible within 5 business days (cannot be tied up in mutual funds) payable to the seller’s agent brokerage to be held in trust. Ideally paid by certified funds if possession 30 days or less. This is fully refundable if you decide not to remove conditions. Your deposit applies towards your down payment of your mortgage at closing.
  5. Possession date (“Completion day”)
  6. Attached and/or Unattached goods you want included in the purchase (ie appliances, shed, air conditioner and/or window coverings)
  7. Additional Terms you want the seller to agree upon
  8. Conditions to the purchase (subject to financing, home inspection and/or condominium documents review etc)
  9. Request for a Real Property Report (RPR), Residential Measurement Report (RMS) and any applicable disclosures that applies
  10. Optional date the offer expires

Negotiations between the two parties

Counter Options:
  1. REJECTION: Flat out reject the offer. Avoid if possible even if its no where close to what we want to end at.  By dissect the key points and see what is negotiable and what is not. We strive to see it from an objective point of view to keep the process moving. It doesn't matter where the price is now, its where we end up!
  2. ACCEPTANCE: Love it! Congratulations on a pending offer for your home!
  3. COUNTER: Highly recommend countering price and terms that would work best for you. It ma take a few counters but we will strive to push hard and find a solution that works for everyone!
There are no set prescribed time an offer have to be responded to but remember this is a process that involves a lot of thinking and emotion from all parties! Let’s strive to work together, the seller wants the home sold at a reasonable price and the buyer wants to purchase a good home at a fair price. My job is to find the middle ground to help get this done or know when to walk away if it doesn’t make sense!

Get In Touch

JAKIE NG, REALTOR® | Your Edmonton Downtown Condo Specialist

Mobile: (780) 224-5566

Phone: (780) 224-5566

Email

Office Info

RE/MAX River City

#100, 10328 81 Ave NW  Edmonton,  AB  T6E 1X2 

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