Buying a new home can be really challenging for anyone, but especially for a first time home buyer. When you are trying to purchase that perfect piece of real estate it can be difficult to think clearly and make good decisions. One of the most difficult decisions to make is deciding how much to offer on the home you want to buy. Almost all home buyers will tell you that this is one of the hardest decisions to make when buying a home.
The first offer you make will have a significant impact on the rest of the negotiating process. The seller, of course, sets the tone with his or her asking price, but your first offer will also impact things considerably. When buying condos for sale in downtown Toronto a lot of people think that they should make a very low offer, because this will show the buyer that they are not willing to pay a lot for the condo. There are a number of reasons why this is not necessarily a good idea.
One reason why you shouldn't make an extremely low offer on the house that you are interested in purchasing is that often if you do this the seller will be insulted. You need to remember that usually you are buying, not just a house, but someone's home. If you make what the seller determines is an insultingly low offer on the home then the seller will likely not want to deal with you at all. Often, when selling, or buying, a home people are not wholly rational. Emotions come into play and will affect the negotiation process.
Another reason that you might not want to make an extremely low offer on real estate for sale in Toronto is that the seller might think that you are not serious about wanting to purchase the property. If the seller does not believe that you are serious about wanting to buy the home then he or she will likely not want to deal with you or negotiate any further. In this way making a very low offer can hurt your chances at owning the home.
If you put in a very low offer with a real estate agent his or her clients might not negotiate with you at all if they receive another, better offer from someone else. Usually you would be given a chance to beat the higher offer, but if your offer is extraordinarily low then the home seller might not bother offering you the chance to beat the higher offer because they will assume that you are unwilling to pay more. You should not make an offer that is too high, but it shouldn't be so low that it is unreasonable.
Finally, you will want to consider the legal elements of your offer -- and this is where your licensed Realtor will undoubtedly assist, or if you are selling the home without a real estate agent, you may wish to engage the advice of a law firm in the area, such as Scarfone Hawkins LLP which is based in nearby Hamilton or Haber and Associates in Burlington.