- In this video we look at how to make an offer on a house and how to make
counter offers. That's coming right up.
- Welcome to Homebuyer's School,
brought to you by Brookfield Residential.
- Hi everyone i'm Karl and welcome to another Homebuyer's School
video, a channel where you get the latest strategies tactics and tips from
home buying experts and remember if this is your first time on this channel and
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below, hit little notification bell so you don't miss anything. So today I'm
joined by Jessica McKnabb, area manager with Brookfield Residential and
the question I'm gonna answer today is - how do you actually make an offer on a
house? So Jessica, do I just go up to either the seller or a new home builder
and say, hey I want to make an offer. How does that process go?
So there's two different scenarios,
so let's say on the new home side of things, you're in the show home
you meet with the area manager or the sales rep and you've selected your lot
already and you've looked at the certain upgrades in the home, you're then
gonna sit down and do your paperwork and submit your offer together. So how
that works is you're going to have a thousand down and it's refundable, you'll
do your paperwork, you'll come up with all the inclusions, all the upgrades that
you choose, you'll have your lot selection in there, you'll sign off and
that will be 14 days of a time period of when that will be accepted or countered
by the Builder. And then at the 14 day mark you will then put your remainder of
your 5% down and in that actual 14 days what you're gonna do is ensure that your
paperwork has gone to your mortgage broker or lender. Oftentimes the area
manager or sales rep will actually send it on your behalf and they'll start
working on it so you have to have your approval done by your lender.
- And it's obviously usually the best thing to actually talk to your lender before
going to a sales centre right? And you talked about counteroffers from the
Builder, what does that mean?
- So let's say you've decided that you wanted to submit
an offer on a home—doesn't hurt to submit an offer when you've submitted it
it could it's going to go to head office for acceptance and management will take
a look at the offer, look at comparables in the area, and once it comes back it's
either going to be accepted by them or countered.
- And is that—how is that process different than when you make an offer to
just a resaler?
- Right, so when you're making an offer on a resale home usually
you have a realtor that's working on your behalf and the realtor will come up
with the price also based on comparables in the area, they'll submit it to the
other realtor and then the seller will decide what they want to sell that price
for—that home for.
- And what about counteroffers? So let's say you put an
offer into a home, let's say a new home, and then somebody
else in that 14 days that you put in your one thousand thousand dollar
downpayment or $1,000 down, can somebody else put an offer and can the
builder sell it to that person?
- So the way that our builder works is when somebody
first submits their offer they've got their 14 days condition period to make
their decisions so another offer can't come into play, but on a resale home it's
up to the seller so if there's multiple offers and multiple prices coming in
it's up to the seller in which they want to accept.
- And does it cost money to make offer?
- It does yeah typically on a new home it costs a thousand down and it is
refundable on the resale side it's usually at a minimum 5,000 down which is
also refundable.
And can you put in—I guess you've kind of answered, you can't
really put an offer on a house that's already kind of conditionally offered
especially for a new home right?
Somebody can always put a backup hold on it but you
can't re-offer so a builder won't take somebody's higher offer than yours,
and typically with the Builder the price is already set so if somebody's willing
to put it in an offer it won't necessarily get accepted but it doesn't
hurt to ask.
Perfect do you have anything else in
terms of making an offer on a home?
- The most important piece is that 14-day
conditional period is taken seriously and that it—the paperwork is sent to
your lender because by that 14 days if you don't have your approval letter from
the bank another person could come through and put in their offer and a
part of submitting your documents choose the lender, the lender is gonna ask you
for employment letter, then ask you for T4's, sometimes it can take a week just to
get your letter of employment from your employer. So there are things to think
about even though 14 days sounds like a
long period of time it does go by pretty fast.
- Perfect, and the question of
the day I have for you is - do you have any additional tips on making an offer
on a new home or resale home? Let us know in the comment section below and
remember if you enjoyed this video or found it helpful, make sure to hit the
thumbs up leave a comment, and remember to subscribe.
Thank you and we'll catch you next time.
That's another edition of
Homebuyer's School. Tune in next time
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