Now that you’ve made it this far, let’s talk about what happens when you find a property that you like and that fits your group. Again, the market is competitive so you and your group have to be ready to act fast.
When your group has found a property and is ready to make an offer, these are the things to discuss with your agent
Price to Offer
This is a strategy to be developed with your real estate agent. Factors informing your offer will include competing offers, any conditions you want to include, the history of comparables in the neighbourhood (similar properties that have been bought and sold), and the desirability of the house for your group.
Conditions on Your Offer
Offers can be conditional on financing or home inspection. In a market when there are multiple offers, and winning offers are often well over the asking price, your group should aim to be in the position to make an offer as free of conditions as possible.
Types of Conditions
Offer Conditional on Inspection
Some homes may offer a home inspection document to view prior to sale. It may be on display at the home showing. If it is a reputable firm, it may provide enough information and assurance that your group is prepared to make an offer without conditions.
However, if you are planning to make some renovations, it is advisable that you have contacted and vetted a home inspector and you have advised them of your home search, so they are readily available. If it is possible to do your own inspection before your offer, your group will have a better chance of submitting a successful offer.
Offer Conditional on Financing
Your group should try and avoid being in a position that financing is unapproved at the time of the offer. You very likely will lose in a multiple bid situation.
Prior to looking, you should make sure every partner has agreed on the absolute top end of the purchase price. If you are pre-approved, and then want to purchase something more expensive, a reassessment of all of your finances will have to be done again.
Closing Date
This may be another part of your offer that makes it more attractive than others. Some sellers want or need an earlier closing date than the typical 30 – 60 days. If you are able to offer this, it might put you in a better position than higher bids that can’t offer the same.
That’s the end of our Five Steps to a Co-Ownership Purchase! We hope that it has helped you broaden your knowledge and guide you through what can be a long and difficult process!
How Do You Find Your Property?
Click on the sections below to learn more.
Are You Ready To Buy?
What are all the Steps to Becoming a Co-owner?
Click on the links below for all the blog articles related to each step.
“If you’re buying within your budget, the financial homework you have completed may make it possible for you to make an offer without conditions on financing. But understand there is always some risk, and I recommend discussing this move thoroughly with your mortgage specialist.”
Other posts from Finding Your Property
