Home Buying Offer Tips in Toronto
Are you ready to purchase your dream property? In Toronto’s competitive real estate market, the best way to secure the home you want is by making an offer that sellers can’t resist.
Whether you’re competing against other buyers or you simply want to make a great first impression, there are steps you can take to strengthen your bid. By optimizing each detail, you can help ensure that the package you put together is as appealing as possible.
Here are a few tips for making a highly-attractive offer on a home…
Increase your deposit
Your deposit is a cheque or a bank draft that you will submit with your offer. This amount is often a percentage of the purchase price. It shows that you’re serious about purchasing a home, since you have something to lose if you change your mind and walk away from the deal. If you refuse to close, the seller may get to keep your deposit; this provides the seller with a greater sense of security.
In Toronto, five per cent is fairly standard for a home deposit. That said, the higher the sum, the more attractive the offer. Think carefully about how much you’re willing to put forth. Some sellers require that a certified cheque or bank draft be submitted with your offer. Otherwise, you’ll need to have the money delivered to the Listing Broker’s agent or office within 24 hours after acceptance of your offer.
Make the offer as clean as possible
Sellers want the transition from one home to another to be as headache-free as possible. By removing as many conditions as you can from your bid (which is also known as making a “clean” offer), you can help assure them that the selling process will be smooth and low-stress. Here’s how it works.
Home-buying conditions are a form of protection for buyers. They ensure that under certain circumstances (such as an unsatisfactory home inspection or if you aren’t able to secure adequate financing), you can walk away from your purchase without consequences. Choosing to forgo these conditions can streamline the process for sellers. Your agent can advise you if removing conditions is a viable option based on the property and your own circumstances.
Don’t try to lowball
Given the stiff competition for homes in the Toronto market, lowballing is rarely a good idea. Some buyers bid low with the idea that they’re leaving room for negotiations, but sellers will often reject these offers out of hand.
When it’s your dream home your bidding on, you may want to consider making your highest possible offer first. Of course, this isn’t the only strategy—and it’s not always ideal. The important thing is to look at market conditions and be realistic. Your agent can help you assess the right starting point for your offer.
Consider writing a letter
Many buyers don’t even consider writing a letter as part of their offer, which can be a mistake. While it’s true that money tends to motivate sellers more than any other factor, there are times when a personal touch can nudge them in the right direction, especially in multiple offer situations where the offers are similar.
When you’re writing a letter, try to establish a connection. If you and the sellers have a shared passion for rescuing dogs, you might want to reference it. If you love their home or have always dreamed of living in the neighbourhood, tell them so. Just remember, sincerity is key.
Be flexible with your closing date, if possible
In some cases, timelines matter. Many sellers are looking for a quick and efficient closing, while others could use a bit of extra time to make their move. If you’re willing and able to work with the seller’s schedule, it could give you an advantage over less flexible buyers.
There’s no doubt that the offer process can be stressful for buyers, especially in a competitive market like Toronto. Fortunately, working with an experienced agent can help you feel more confident. It just might make the difference between securing your dream home and losing out to another buyer!
Are you ready to buy your dream home? Start your search today by finding an agent who can help you at every step—including during the offer stage!