How to make a successful offer on a new home
Congratulations! You have found a home that fits your budget, your life-style and the needs of your family, and you are ready to make an offer.
But what should your offer include, and how should you go about making it?
In Canada, it is almost always a good idea to consult with a lawyer (or a “notary” in Quebec) to help you prepare an official Offer to Purchase a home.
To help you know what to expect, Canada Mortgage and Housing Corporation (CMHC) offers the following list of what your Offer to Purchase will probably include:
• The purchase price you are offering to pay for the home.
• The amount of the deposit you are prepared to provide.
• A complete list of any extra items (also called “chattels”) that you want included with the purchase price. Some common items that are often included in such negotiations are window coverings, a refrigerator or stove, or the washer and dryer.
• The closing date, which is the date you want to take possession of the home. This date is usually between 30 to 60 days from the date the seller accepts your agreement.
• A request for a current land survey of the property.
• The date at which the offer will become null and void if you haven’t heard back from the seller.
• Any other conditions that you want to include with your offer, such as approval from your bank for mortgage financing or the right to carry out a home inspection of the property before the agreement will be considered final.
Regardless of what your offer includes, in most cases, the seller will likely respond to your offer with a counter-offer. Don’t worry. This type of back-and-forth negotiation is perfectly normal, and it can often take several such offers and counter-offers until you finally have an agreement in place.
The whole process can sometimes seem like a roller-coaster ride.
But while it can be stressful, it is all part of making the deal work best for both you and the seller.
Visit Housing for Newcomers at www.cmhc.ca/newcomers for more information on buying, renting and maintaining your home.Posted: Jul 31, 2013