When you have decided on a specific property to purchase, then one of the next few steps is to make an offer on it before closing the deal later.
Being able to provide the information required not only allows you to be one step ahead of other property investors or buyers but shows that you are interested in the building and are willing to work with the seller to make the process easier for all parties involved.
What should my offer include?
Make sure you have the correct contact information of the property’s seller. This helps ensure that they receive your offer in the first place. Your offer should include the basic details such as your legal name, the name of the seller, as well as the property’s address.
Don’t forget to include the all-important purchase price alongside the amount of your deposit. Other elements of your offer should have a list of any extra items you want to be included in the transaction, your ideal closing day, a request to survey the location, as well as any other conditions that you want to be met before the finalized contract. This can encompass a thorough property inspection by a professional. Letting the seller know when your offer expires would be another step in the right direction.
Note that once you let the seller know about your offer, you should also expect to participate in some negotiations. This is when terms and more details of the contract are discussed, which may be a challenging and stressful process. However, don’t be afraid to work with experts to help both you and the seller make the best deal with each other.
After the negotiations and finalizations, your offer may get accepted by the seller. You should then let your mortgage broker know about this in order to take the next steps in completing the financing aspect of your property purchase and investment.
What paperwork should I have in addition to the offer?
There are other documents that you should be ready with as well. These include a recent property tax assessment, an appraisal alongside a report on the home inspection and land survey, as well as the costs of utilities and heating.
Don’t forget the legal description of the specified property, the specifications of the building, the property listing with photographs, and the estimated costs of any recent or future renovations. If you’re making an offer on a condominium, then make sure to take note of any fees associated with it as well.
What happens on closing day?
The closing day is the last step in a transaction to purchase a property. On this day, you can legally take possession of the property after the final requirements are completed at your lawyer’s office.
The closing day is also determined between you and the seller, and you have to pay out the remainder of the balance needed before receiving the keys to the property. After your lawyer pays the property’s seller and officially registers the property to your name, you will get the keys and deed to the property. This process deals with the mortgage amount, your down payment, as well as the closing costs.
How do I prevent delays on closing day?
There are several ways to prevent delays on closing day. In order to mitigate unexpected surprises, make sure to check if you have all of the required documents well beforehand. Ensure that you have enough funds for the fees and necessary payments as well.
You can ask for help from your lawyer to check that all the required documents are in one place. Again, this should be done before the deadline in order to meet the closing day expectations. Doing all of this beforehand also helps you fix any potential errors within the documents. By closely looking through your documents, you can catch any errors or mistakes that may lead to misunderstandings about the mortgage and property.