08 Mar 6 Things to Know About the Offer Process!
6 Things to Know About the Offer Process
Buying the perfect home is not as simple as it can look on TV.
Buyers and sellers must first navigate the offer process, which can involve many steps and quick decisions.
Here’s what first-time buyers and sellers can expect, and how your REALTOR® can help guide you throughout.
1) What must happen before you can make an offer?
Many renters think they can move on a house right away. But first, there are some things to take care of.
Get pre-approved for your mortgage unless you’re paying cash.
Meet with a mortgage broker and provide all the required financial documents, so you can establish your budget and know what you can afford. Once that’s done, meet with REALTORS® to find a perfect match, explain what you’re looking for, and start an active search. REALTORS® have inside information about certain condo buildings and areas. REALTORS® can also send you documents faster, such as the seller’s declaration, certificate of location, and any relevant financial documents.”
2) How is an offer drawn up?
When buyers are ready to make an offer on their chosen property, they must inform their REALTOR®, who will then advise the listing agent. Otherwise, as soon as you walk out of a property, you don’t have to be informed if another offer comes in. This is especially important in this market, where we’re getting multiple offers. Your offer would include the price, the date of closing, and whether it’s conditional upon inspection (or other terms) and a review of documents.
3) How long does the offer process take?
Depending on whether yours is the only offer or if there are many other buyers interested, the entire offer process can be completed in as little as a day or take up to a week. Right now, many properties are coming on the market with an established schedule for visits, offers, and deadlines.
4) What happens when there are multiple offers?
If you’re competing with other buyers, your REALTOR® might suggest being flexible with some conditions and going in with your best offer.
It’s usually a one-shot thing: there are little to no negotiations when there are multiple offers.
Some buyers write a letter to the sellers and include photos of themselves when there are multiple bids. Some people like to know who they’re selling to because it’s not just financial, it’s also very emotional.
5) Are offers done in person or digitally?
First-time sellers might remember when they bought their home years ago and how everyone met in person to sign all legal documents; however, technology has changed that.
Most things are done electronically now and it’s so efficient! Offers are emailed, and its very rare offers are presented in person to the listing agent. In fact, many sellers are requesting that all offers to only be presented to them by their REALTOR®. If the seller wants to counter-offer, negotiations will also be done digitally until both parties agree to terms, or someone decides to walk away.
6) Should sellers accept the first offer that comes in?
Sellers shouldn’t feel pressure to respond quickly.
In a fast market like we are in at the moment, it is likely that any offer received will have a short window to accept, counter or decline. This is why so many Sellers are now choosing to set a date for presentation of offers so that they have the greatest opportunity for their home to be property marketed to a larger audience and get more offers to choose from. Remember, even with a specified date to review offers, a REALTOR® must present all offers that come in order they were received.
Remember, REALTORS® are trained to navigate the offer process from start to finish, helping both buyers and sellers meet their goals.
The information above is for informational purposes only and should not be used as investment or financial advice.