You've found the home of our dreams- now what?

Once you have found the perfect property, it is time to make an offer! This is where your Realtor can really help you!

You want to be realistic in your offer; something that you can reasonably afford, and that the other party will reasonably sign. So how do you come up with the price? Your Realtor should provide you with a list of comparable properties to help you decide on proper pricing. Comparables should include a couple of active listings, recently sold listings, and expired listings. Listings should have similar qualities (ie., # of bedrooms, property size, type of home); the more similar, the better the comparison. Sold listings help to give you an idea of homes that were probably fairly reasonably priced. Expired listings tend to indicate a price that was too high for the market or some sort of other deficiency. This will make it easier for you to decide whether the sale price matches the local realtity and whether you should offer more, less than or equal to the asking price.

It is advisable to include a home inspection clause in your offer. Sometimes it will be necessary to include certain clauses to protect your interests. For example, if the property has a well, a fuel tank or a fireplace, there are certain certifications that can be obtained or requested to ensure they meet standards and are in proper working order. If you have any concerns about the property, bring them up with your Realtor and make sure they include the proper clause(s) to protect you. All fixtures and chattels that are staying with the property should be clearly expressed on the offer, so that there is no confusion at closing.

Your Realtor will probably use a standard Agreement of Purchase and Sale form provided by the Ontario Real Estate Association (OREA). Ask your Realtor to explain anything you don't understand. Usually a deposit will be attached with the offer as a sign of good faith. The deposit can also be given upon acceptance of the offer (once all parties have signed and agreed to the offer).

Your Realtor will then present the listing agent with the written offer, which can be either be accepted, rejected or counter-offered by the Seller. Once the Seller accepts the offer it becomes a legal contract, and you have purchased the home. Usually this is conditional upon inspection or other conditions, and so doesn't become "firm" until a later date.

If the Seller rejects your offer, you can either come back with a better offer or move on to a different home. Offers are rejected for many reasons. If you DO make another offer keep in mind the following: the price, the closing date, the number and type of conditions, and which fixtures or chattels are included. Sometimes simple things, other than just the price are keeping the seller from accepting. If the Seller counter-offers to you; you then have the choice to accept, reject or counter-offer.