Cash purchase. A cash purchase provides a full advantage to the buyer since it will eliminate all worries that the buyer cannot close the deal. However, in a market like Willowdale, Toronto, where prices are in a multimillion-dollar range, cash purchase may not be an option for many buyers.
Financing condition. The financing condition is standard in the agreement to protect the buyer if the mortgage is denied. It gives the buyer an option to walk away from the deal. However, by removing the financing condition, you tell the seller that you are prepared and confident to get the loan.
It is vital to talk to your lender and understand the details; before waiving the financing condition. Your will be running the risk of losing your deposit money if your mortgage is denied.
Deposit. The amount of deposit indicates how committed you are to purchase the house. The deposit is usually 5% of the purchase price; you may try to increase the deposit amount as much as possible.
Inspection clause. The inspection clause is standard in the agreement; it allows the buyer to walk away from the signed contract if the inspection identifies house issues. You may decide to waive the inspection clause to have a more appealing offer. However, purchasing a house without a professional inspection can have a significant risk for you; if later, you discover major issues with the house. You may also decide to have an inspection done and pay for it yourself, before the offer presentation date.
As a marketing strategy, the seller may have an inspection done beforehand. You should consider reviewing the inspection to verify that a reputable inspector conducted the inspection. Having an inspection in hand will make it more comfortable for you to waive the inspection.
Closing date. If you are flexible about the closing date, you can help the sellers have a closing date that works best. For instance, if the seller is coordinating the buying and selling, having a specific closing date will be important. Your real estate agent should communicate with the listing agent to fully understand the seller's needs to draft the offer accordingly.
By being flexible about the terms of the agreement, inspection clause, closing date, financial clause, in addition to the best price you can offer, your offer can stand out to win the house you love to purchase.
Losing a bidding war does not mean it is over. You should not give up yet. If you lost the bidding war, have your real estate agent keep in touch with the listing agent just if the deal falls apart.
When to walk away from a bidding war? You may do everything right but still, lose the bidding war to someone else. It happens all the time; keep your cool and emotions under check. Always keep in mind NO deal is better than a bad deal. You should be clear and firm about your budget; I have seen more than I like. The buyers paid thousands of dollars more than they wished. That is why you are working with an experienced real estate agent; discuss what happened and continue to look for the home that you will love.
Buyers dealing with competing offers (Multiple offers); what are the best strategies? PART 1
The above Real Estate article was provided by David Khosravi, a leader in his field in North York, Willowdale Real Estate, Reach out to David via email: email@example.com or by phone: 416.990.2424