Home Buying Toronto, Mississauga, ON, Canada. Offer Presentation Process Negotiation Bidding War
How to the find the best Real Estate Agent in Canada? Offer presentation and Negotiations explained for home buyers in Canada
For the buyers and specially First Time home buyers in Ontario, Canada:
Many buyers – when making an offer to buy a property, house in Canada are not fully aware as how the offer presentation/negotiation system works or what is the common practice for the sellers to deal with their offers.
What is an Offer ? Offer is the common term for an Agreement of Purchase and sale (APS) which is prepared by the Real Estate Agent or your Realtor for you and to be presented to the seller on your behalf. Usually the offer is presented through the sellers agent or the listing agent in Ontario, Canada.
In Canadian real estate home buying or selling process, usually – Buyers and sellers never meet for negotiations face to face or even talk directly to each other.
So you are all dependent on your Real Estate agent who is representing you in the process.
How much Commissions do I have to pay for buying a house/Condo? In Ontario Canada 99% Time you don’t have to pay any commission or any kind of fee to your Real Estate Agent, When you are buying a house or a Condo apartment. Your agent gets paid through the seller. In other words seller pays the commission for their Real Estate agent as well as for the buyer’s agent.
So, if you are a home buyer you get the free services of your agent. Your REALTOR is the most important person in your home buying process in Ontario, Canada. Because he is the only one dealing on your behalf. You trust him with the Biggest purchase of your life. It is all about the knowledge, experience, professionalism, honesty and skill set of your real estate agent who is working for you.
In realty most situations your agent must also work as your consultant, but in 95% cases they fail to deliver honest and valuable advice. As on October 2022 there are around 70,000 agents in Greater Toronto area (GTA) and out of these 5% of these 70,000 agents do 95% of Total business. So, 95% of GTA agents are doing hardly 1 to 6 deals in the whole year. In other words either they are new, not very knowledgeable and successful or may be a part time agents. So, you need to find an agent who is at least 10+ Year experienced and has a track record of doing at least 25 deals every year and on top of that enjoys a great ranking on RankMyagent.com , Only most authentic Web portal approved and recommended by REALTOR.CA and RE/MAX.CA
As often, many agents are more concerned to make the deal happen ASAP so that they may get paid.
It is very hard to comprehend for the first time home buyers or even if you are buying a property after long time that how important is the selection of a right and good realtor/agent.
Now the question is: How to find a great and honest real estate agent in Greater Toronto Area, Brampton, Milton and Mississauga?
Now Let us look at the different scenarios of how your offer or Agreement of Sale and Purchase is dealt with.
For the protection of buyers and consumers in Ontario, Canada the format of the offer document is prescribed by the Ontario Real Estate Association known as OREA.
Scenarios # 1 : Yours is the only offer on the table.
Your (Buyer) agent will find out from the seller’s agent that yours is the only offer in the hand of sellers–that means no one else is competing against you in this transaction. That is the best situation for you to negotiate with the Sellers. (Well many factors will decide – how much you may negotiate).
Scenarios # 2 : Yours is the NOT the only offer on the table.
This is NOT a good situation for you as now you are going to compete against the other offer.
Now, What will happen and how your offer will be dealt with ?
- Sellers agent is NOT supposed to inform your agent – what the value (Price and other terms) of this offer.
- You may only find out total # of offers you are competing with.
- Sellers will and have to pick and choose only one offer out of multiple (2 or more) offers to work with
Sellers will select the best offer in their interest and situation, based upon many merits and reasons.
- Price on the offer
- Conditions in the offer.
- What are the implications?
- Sellers will and have to pick and choose only one offer?
That means if yours is not the best offer – it will not be picked – in this out of multiple (2 or more) offers to work with.
The whole process in multiple offers or commonly known as bidding war situations is very complex. This is the real acid test of your Realtor and this is the time you will find out if your agent is doing his/her job most honestly and only in your best interest.
It is the time when most agents are unable to handle it or cope up with it.
At such times , Only a highly skilled, experienced and honest agent may deliver the best results in your best interest.
Interested to understand the whole process better?
Have questions–What if?
Ask for the information to attend a “ First Time Home Buyer Seminar in Ontario” or for a Face to face meeting for a clear understanding of the home buying process in Canada.
Get in touch with highly acclaimed and RE/MAX International -Hall of fame, Platinum Club award winner RE/MAX TEAM Paliwal today !