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| Source: http://realtyexecutives.com/ |
Last week we went over how first time buyers should go about purchasing their first home. But we’ve just scratched the surface. Today we’re going to go in depth into the “making an offer” part of buying your first home (though this applies to buying your second, third, fourth home etc.).
As we talked about last week finding the perfect house is only the tip of the iceberg. Your next question is how much to you bid on the house? Prices are often both over and under priced so their asking price isn’t necessarily the magic number. To evaluate how much to bid on the house look at recent sales of similar homes in similar neighbourhoods. Once you’ve done some research decide how how are you willing to go at the end of the day. Once you’ve got this intel make a bid!
Once your offer is accepted by the owners get the amount you’re paying in writing. Usually a real estate agent can provide an offer sheet which you as the buyer will sign. A real estate lawyer can provide this as well. The document should include the purchase price, deposit amount, the closing date, the move in date, and any conditional elements to the deal.
Once everything is in writing you should have your deposit ready to fork over. This deposit cheque should be made out to a third party not the home sellers themselves.
As is clear making an offer is not where the transaction process ends. So it’s important that you are well informed on what steps need to be taken to make an offer official and legal.
Source: http://www.moneysense.ca/2012/04/05/making-an-offer/