Win the offer and don't let anybody else to take your dream house

If you are planning to purchase a home you always wanted, we will give you some advice on how to be successful. As I have more than 25 years of experience of selling Toronto luxury homes, so  I can imagine how confused a client might feel when they find out there are 15 or sometimes even more people who want to purchase the same property. Well, I cannot make sure that even if you follow my advice, you will finally win the offer, but anyway it might be useful for you and even save you some cash.

Important: Get pre-qualified

Prospective clients who can get prequalified for a bank loan always have a better chance of getting the deal than applicants without a proper financial background. The house owner has to be sure that you are able to pay for the property - when your financing is not clear, all the other advice will not help.

Find out the seller's preferences

Knowing what or who the seller is looking for is essential, because you don’t want to waste your time with a seller that has terms which you cannot meet. It is therefore advised to find out all the prerequisites accompanying the sale of a property you want to bid on. If you cannot accept them, walk away. On the other hand, if you are willing to meet them, have your agent to prepare a summary that will accompany your offer. That will give you a chance to let the seller find out more about you and will highlight the positive aspects of your offer.

Not too low, not too high

The last thing you want to do is to insult the seller by your low-ball offer, because the seller most likely will rather sell it to almost anybody else then you. Once you damage your reputation, it is not improved even after bidding a higher offer later. Instead shoot about $1,800 to $4,800 higher over the highest expected bid. For example the most the owner expects is about $470,000. Throw in a bit and offer let's say $473,164 - you don't always have to bid an even numbered price!

Down payment

A nice large down payment of 10% to 20% always created a good effect. Later it is often possible to talk about the ultimate down payment amount with the seller again, after you have closed the deal. The most important thing is the amount you pay when the deal is closed so that you look like a trustworthy buyer.

Good faith deposit

The following tip might look a little too determined, but it may help you a lot. Use as much of your down payment on your good faith deposit as you can (you loose this deposit if you brake the contract). You have to pay this money anyway, as the earnest money deposit is included in the down payment, but it sends a strong signal to the owner. That way the seller knows you really mean to do business. This means that the earnest money deposit serves as a measure of your real interest in buying the property, regarding the fact that after signing the contract, you can usually change the amount of the down payment.

Propose a short rent-free stay

In the summary accompanying your offer, offer a free-post occupancy agreement to the seller in case they need a some time in the property after it's been sold to settle their affairs. Typically you would negotiate rent, but giving the option of free occupancy for a short period of time might be the detail that decide whether the seller will go for your offer or not.