What is the Process for Making an Offer on a Property in Edmonton?

Making an offer on a property

Once you have found a suitable property you are interested in purchasing, there are several steps you want to take to ensure the transaction goes smoothly and there are no unwelcome surprises. Making an offer on a property typically involves several steps. Here's a general overview of the process:

Research the Property
Thoroughly research the property, considering factors such as location, property condition, market trends and comparable sales in the area. This information will help you decide on a reasonable offer.

Write an Offer to Purchase agreement
Your real estate agent will help you draft an offer to purchase that includes the purchase price you're willing to pay, any contingencies (conditions that must be met like financing approval), the proposed closing date, deposit amounts, what’s to be included in the price, and any other terms or special requests.

Submit the Offer
Your agent will present the offer to the seller or the seller's agent. The seller can either accept, reject, or make a counteroffer.

Negotiation
Expect negotiations. The seller may counter your initial offer, and you can go back and forth until an agreement is reached. Your agent can offer advice during this process. This process can take anywhere from a couple of hours to several days depending on how many counter offers there are and how quickly each party responds.

Due Diligence
Once the offer is accepted, you'll enter the due diligence phase.

This typically includes:
• Home Inspection: Hire a professional inspector to assess the property's condition.
• Appraisal: The lender may require an appraisal to determine the property's value.
• Title Search: Ensure the property's title is clear and there are no legal issues.
• Financing: Finalize your mortgage and secure financing.
• Review Documents: Carefully review all documents, contracts, and disclosures related to the sale including condo documents when applicable.

Contingencies
Depending on the contract, you may have contingencies that allow you to back out of the deal if certain conditions are not met. The most common conditions in Alberta are financing, inspection, condo document review and sale of the buyers home.

Finalize Financing
Work with your lender to complete the underwriting process and secure your mortgage.

Closing
Once all contingencies are met, and financing is in place, you'll need to sign a waiver letting the seller know you have met your conditions and wish to proceed with the purchase. If you don’t do this by the agreed deadline the offer becomes null and void.

If you waive conditions, the next step is for the buyers and sellers lawyer to communicate with each other for the purpose of closing the transactions on the agreed upon possession or completion date according the terms in the offer to purchase contract.

Transfer of Ownership
Upon closing, the property officially transfers to your ownership, and you receive the keys and title.

It's crucial to have an real estate agent or attorney assist you in the process, as buying a property involves a lot of legal and financial intricacies. The specific steps and requirements may vary by location and individual circumstances, so it's important to consult with professionals who are experienced in real estate transactions in your area.

Looking for more information on buying a home? Read some of our other blog posts created specifically for buyers by clicking here!

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