Here’s the info to read before making an offer!
The details required to make an offer;
DEPOSIT
For this you will need cash available in one bank account ready to go!
This is the cheque that is submitted along with your written Offer To Purchase and is held (cashed) in trust with the selling realtor’s brokerage. This shows your intent to follow through on the purchase since - if you back out of the finalized legally binding contract once all conditions are removed - this would be non-refundable.
It shows your seriousness and financial fitness to proceed.
A deposit of 2% is standard and higher is encouraged when competing. BRING YOUR CHEQUE BOOK! If your offer is accepted this cheque is cashed within 24hrs. If your offer is not accepted your cheque is voided.
If you do not have a cheque book (or we are signing your offer remotely) let me know as there is an alternative to write, "Deposit within 24 hours of acceptance." Then you have time to get a cheque in or get to your bank ASAP for a bank draft the next morning!
DOWN PAYMENT
What will be your total downpayment for the home? From 5% to 20%+ or any total dollar amount is fine. Your Deposit makes up part of this total amount. The downpayment is made on or before possession date. This is arranged with your bank approximately 1-2 weeks before you move in.
For Example;
I have $50,000 to buy a house. I will submit 10k as my deposit with my offer to purchase. The remaining 40k is the remaining downpayment due closer to possession date. This makes my total downpayment 50k
POSSESSION DATE
Do you have an ideal? I will always ask what possession date the seller wants.
It's good to be responsive to what the seller prefers if you end up in competition with other offers.
CONDITIONS
What conditions would you like written into the offer? Financing and home inspection are so standard that they are literally written on the offer paperwork itself for the purchase of a home.
A condo will have only financing as a condition that is already in the offer because it is common.
FINANCING
Due to competition, ask your bank this question; exactly how many days they will need to satisfy a financing condition? The faster the better.
People are writing with no financing condition right now, but I would recommend that only if you have the cash available or written confirmation from your bank that you can do this at your Kick-Me price (more on that below).
Unfortunately, at this time, home inspections are being waived since there is still competition for homes. This is 100% up to your comfort level. I would want an inspection if I was the one making the purchase, so if you want one I am 100% great with that!
If it’s an Offers Date Offers where offers are being presented; You will have the chance to change your offer at (lets say) 6pm when they give us the final number of written offers and ask, “Would you like to make any changes?”. Generally the best offers wins at this point but IF you are in the top two or three closely competing offers there is sometimes an opportunity to better your offer. This is at the discretion of the selling realtor and the seller. I would recommend in this competitive market to change your offer to your Kick-Me price.
The Kick-Me price means asking yourself this question; “If I find out the home sold for $5,000 or $10,000 more will I kick myself for NOT having offered that?“ Only you know what this price is and it should be discussed with your bank so they are ready to support that price.
Let me know if you have any questions.
This is a standardized email template I have created so it may not touch on all of the questions for your personal circumstances. Let me know what you think and if you have any more specific questions.