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Learn How to Write a Real Estate Offer to Purchase

As a buyer, when writing an offer on a property, you want to be able to pay the least possible amount for your

home. Sometimes buyers will offer 5-10% off of an asking price for no reason other than they were told to by a "friend" This is so silly You may want to offer more, you may want to offer less. The only way to make a reasonable offer is to do your homework.


REAL ESTATE TIP #1 - What the seller paid for their home is irrelevant.

REAL ESTATE TIP #2 - What the seller is asking for their home is also irrelevant.


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Knowing why a seller is selling is always helpful when you make an offer, but this information is protected by the sellers real estate unless it is allowed in writing to be disclosed. However knowing the reason for selling is still irrelevant on the true market value of the home, as is the asking price. There are several things to take into consideration, prior to making an offer on any home.


  • Market Conditions: Is it a buyers market or a sellers market? Knowing what type of real estate market you are in will help you choose an initial offer price. Completing a community absorption rate is the easiest way to know.
  • Possession Date:Edmonton Real Estate Agents have access to this information and as a rule of thumb, the quicker, the possession date, the more motivated the seller is. Most homeowners in Edmonton have a 30-day negotiable possession date. If a longer possession date or a set date is asked for, this is an indication which the seller needs a specific date and can be more important than price. Keep in mind, if the property is tenant occupied, tenants do have a 90-day tenant right. Normally, homeowners with tenant occupied properties or a vacant property are more motivated.
  • History: Your REALTOR® will know the history of this home. How long the sellers have owned the property, how long they have been trying to sell it and if there have been any price adjustments. Your real estate agent is also required to pull the title of the property which will indicate any recent financial debts including the current mortgage to ensure there will be enough funds to close on possession date.
  • Condition and Size: Size is a factor of price more in places like China than Edmonton. The value of a home is in the condition. You may want to go back into the home to take a better look at the overall condition. Is the flooring laminate or hardwood? Are the faucets Walmart or Moen? Has the yard been meticulously maintained properly or neglected? Will you be replacing any fixtures, chattels, windows, shingles in the near future? Look at the property through the eyes of your experienced real estate agent. They will notice things you don't.
  • Complete a Buyers Comparative Market Analysis: Examine all recent comparable sales. Only use recent properties that are similar in configuration, age, and location to the home you want to buy. Your REALTOR® can complete this for you.

REAL ESTATE TIP #3 - If the property has been staged, don't be fooled by how pretty it looks. Staging a home does not increase property values.


Read more about purchasing a home in Edmonton with our simple 5 step process

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CAN YOU AFFORD TO SELL YOUR HOME

The Edmonton real estate market is soft and house prices have been dormat for the last decade. Before you sell your home, do your homework and estimate your closing costs to ensure you have enough money to make your move. There is nothing worse than sitting with your lawyer and not having enough funds to close your sale.


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When a home is sold, the seller incurs various closing costs in addition to paying out the remaining balance on their mortgage and payout penalties. Typical closing costs for a seller may include any property taxes which are in arrears, encumbrances, the cost of a real property report with compliance and/or title insurance, any permits which were not obtained earlier, real estate commissions, any provincial, GST revenue, agricultural or business taxes, liens and legal fees. If the property is a condominium, the seller may also have costs of condominium documents, unpaid condo fees, levies and the estoppel certificate. When selling a house, the seller's costs vary from a few thousand to several thousand.


Since our Edmonton economy is not in the best shape and buyers have become nervous about making large purchases, there are several ways to maximize the value in your home without major renovations including staging and a little bit of home maintance. Pricing your home correctly in todays Edmonton Real estate market is crucial and timing is also a factor. Read more on your community absorption rate.


If you are not sure if you have enough equity in your home, contact one of our real estate experts for a free home evaluation.

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Are your home shopping expectations realistic?

There is no such thing as a perfect house. If you are pre-qualified and have been looking for a home for a long time, there will be one of four reasons you haven't found your dream home


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You can't afford the homes you like.

Either stop looking until you save enough money to purchase your dream home or be realistic what you can afford. Your first home does not to be the forever home. Purchasing your first property is the first step to getting your dream home by building equity. However if you have found a few homes, which would only need a few touch-ups like a new kitchen, talk with your mortgage broker to see if it possible to add a renovation loan into your mortgage.

Chosen the wrong real estate agent to help you.

The majority of Real Estate Agents in Edmonton and the surrounding area have access to the same MLS Data, but if there hasn't been anything which has caught your attention, you can either fire your agent and find one who will work harder for you, which may include knocking on doors in a specific area or making community phone calls to find you a suitable property. Or maybe you are just too picky.

No motivation.

There are many people who prefer to rent. Every month, they pay for someone else's mortgage, helping the homeowner build equity. Or you have signed a long lease and are not in a position to buy. Or you may have a reason for not purchasing yet. If this is the case, stop looking until you are really ready. Every time you view a home, the seller must vacate the premises which means more cleaning and making arrangement to remove children and pets.

You are TOO cheap.

What the asking price of a home is, is irrelevant to the purchase price. For example:if two identical homes are listed at $400,000 and the other at $375,000 and you are still "Low Balling" the less expensive one, you will never get a good price. A good real estate agent will complete a buyers CMA for you, which will indicate a fair value market price and if it is below, you've already made money.


BEST REAL ESTATE TIP: No matter what type of market we are in, the longer you postpone your purchase, the more money you will lose. Eventually, house prices will go back up in Edmonton, but so will interest rates!

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How to use a Comparative Market Analysis

Edmonton real estate agents can provide a comparative market analysis, also known as a CMA, for any property including properties subject to divorce, civil enforcement, foreclosures, estate sales, city tax purposes, etc. It takes time for real estate agents to complete an accurate home evaluation. Unless you have plenty of experience in buying and selling real estate, online home evaluations may be completely misleading and should never be used as a realistic asking price.


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Seller Comparative Market Analysis

When working with sellers, a comparative market analysis is used to determine a realistic and accurate asking price. A Seller CMA is based on comparable properties which are currently active (homes for sale), recently sold homes (usually within the last six months), expired (homes which did not sell for various reasons) and the history of these homes. Other factors will include the current Edmonton real estate market, supply and demand, the condition of the property, the location, community absorption rate and many other factors. An experienced, professional Edmonton Realtor will take the time to go through all of this data with you, together determining a true asking price for your Edmonton Home.

Buyer Comparative Market Analysis

When working with buyers, a comparative market analysis is similar to a bank appraisal and is used to write a reasonable offer to purchase. A buyers CMA is based on both current homes for sale and recently sold home price in Edmonton taking into consideration all relevant factors including the condition, size and location. For new builds, this process is a bit different and is based more on the cost to build, economic factors, building quality, and the reputation of the builder.


Free Comparative Market Analysis

If you are thinking about selling your home or if your home did not sell due to other factors, feel free to contact us for a professional no-obligation Edmonton home evaluation. We also service Morinville, Bon Accord, Gibbons, St. Albert, Spruce Grove, Beaumont and Devon. Our Homes & Gardens Real Estate Agents will take the time to help, educate and inform you on all real estate aspects of your community to determine the right value for your home, ensuring you receive the highest possible price. Simply CLICK HERE to fill in the form and we will get in touch with you shortly.

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What is a Real Estate Absorption Rate?

During listing appointment and the CMA process, sellers often ask "How long will it take to sell my house?" Although there is no magic way of knowing the answer, know what is currently happening economically and using a real estate absorption rate here in Edmonton will give us a good indication of how long a property will be on the market. An absorption rate will also tell us if it is a buyers market or a seller's market and is often used by real estate investors. It can also give a prediction on the demand of an Edmonton community.


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Knowing how to use and calculate absorption rates using this real estate tool has several benefits. It's the best thing next to a crystal ball. An absorption rate It is a rate at which homes sell in a given area during a given time period. Absorption rate is calculated by dividing the number of sales in a given month by the number of available homes for sale. It is the inverse of months of supply.


For example, if there are 100 houses listed for sale in a certain area, and 10 houses sold over the last month, the absorption rate is 10/100=10%. Which means, assuming no other house listing are put on the market, it would take 10 months for buyers to purchase enough properties to absorb the real estate demand.


As a rule of thumb, an absorption rate of 20-25% or higher means that homes are selling quickly and the market favors sellers. Lower absorption rates mean that homes are not selling quickly and supply is much greater than demand, favoring buyers.


If you are thinking about selling in Edmonton or the surrounding area and would like to know the absorption rate in your community, contact us.

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Did your Home Get Stigmatized?

In real estate, a stigmatized property is a property which buyers may shun for various reasons other than its physical condition or features. These reasons can include the death of someone who was occupying the home to a murder which has taken place inside the property. Some buyers believe the house may now be haunted.


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  • When a death occurs inside a home, it may not always be disclosed to a buyer. Although when there has been a murder, it is usually public information and can be found on the net. According to the Real Estate Council of Alberta, a murder on the property does not need to be disclosed.
  • Many jurisdictions recognize several forms of stigmatized property and have passed resolutions or statutes to deal with them. One issue that separates them is disclosure. Depending on the jurisdiction of the house, the seller may not be required to disclose the full facts.
  • When a home is considered a stigmatized property, the selling value may be decreased to attract more buyers. These houses are priced accordingly and purchasing one for a lesser real estate cost, financially benefit the buyers.
  • Types of stigma may include houses formally used in a crime, such as a drug house or brothel. Foreclosures where debt collectors are unaware that a debtor has moved out of a residence and may continue their pursuit at the same location
  • The wrong starting price can also stigmatize a property when selling your Edmonton home. When a residential dwelling sits on the market for long periods of time, buyers assume there is something wrong with it. Learn how to price your Edmonton home properly from the start.
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EXTRA HOME COSTS FOR BUYERS


Are you ready to purchase your new home? Often, buyers find themselves overwhelmed with the cost of purchasing a home and should be aware of these extra home costs to ensure you won't be struggling at the last moment to find more cash to complete your purchase.


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When a home is sold, the buyer incurs various closing costs in addition to the property sale price. Although most of the expenses of the house are paid for by the seller, usually including real estate commissions, the buyers pay a variety of fees such as mortgage origination charges, appraisal fees, title insurance, lawyer, home insurance, homeowner association fees (HOA) and property tax adjustments. Depending on the buyer and the home purchased, there may be additional fees including CHMC Fees, which can be added to your mortgage amount and other costs. agreed upon and not covered by the seller costs.


Don't forget your moving and utility hook-up costs. As a rule of thumb, one to two per cent of the cost of your home will cover all closing costs. Learn more about how to buy a home in Edmonton.


If you would like to know more about purchasing a home, contact one of our Edmonton Real Estate experts today for help and free advise.

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How to get Top Dollar for your Edmonton Home

Edmonton is a large municipality which means you will have plenty of nearby competition and making your home the prettiest will bring the highest offers, especially in a slower or buyers real estate market and an undesirable location, it is very important to show your Edmonton home at it's very best to maximize its value. Below are the top 5 actions you can take.

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Disassociate Yourself With Your Property

No matter how long you have lived at or how much love you put into your home, look at your home as a real estate commodity and decorate as though, you are giving it away to your favorite member of your family. Make your home appeal to as many buyers as possible by neutralizing every room of the house.

Declutter as much as possible

Declutter as much as you can including your kitchen cabinets, linen and coat closets and your garage. As a rule of thumb, if you won't use it in the next three months, pack it away. Yes, this includes those boxes in your basement which have not been opened since your last move. This is also a great time to donate everything you haven't actually used in the last ten years or have a "priced to sell" garage sale.

Go on a shopping trip

Your home deserves a little freshening up and a shopping trip to spruce up your homes is also on your selling checklist. Purchase color coordinated linen for your bedrooms and bathrooms. This will add both a warm ambiance and a fresh, clean feel to your rooms. If your furniture is dirty - clean it or replace it. Don't get carried away by all of the available staging items. Keep it simple.

Clean everything inside and outside

Serious buyers will be snooping in your home. They will be looking in your oven, fridge, cabinets, and closets. Make sure these are clean, neat and tidy. You don't want buyers to think there is a shortage of storage space, or think your home is not taken care of. A dirty house will be reflected in a buyers offer to purchase. Don't neglect the backyard, garage, and storage sheds. Make your home sparkle!

Have a Pre-sold dinner party

Celebrate your hard work of getting your Edmonton home ready to sell and invite over your closest friends and open the wine. Ask them to walk around your home, point out any imperfections and for their honest opinions. Bring a notebook. You will be amazed by the feedback.

If you have any questions about getting your home ready to sell, contact us.

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How to Avoid Paying Too Much for a House

Before you offer any seller a price for a property, there are a few facts you should to know. The asking price of a property does not necessarily reflect the "market value" of the home.


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Below are a few questions you should check into prior to making an offer.

Is the property tax assessment accurate? If not, find out why

For the city of Edmonton, you can find out the tax assessment value of any residential property at https://maps.edmonton.ca/map.aspx. Although the amount the city thinks the property is worth does not necessarily reflect the true value. It is only used as a starting point.

Are real estate prices going up or coming down?

What is the latest real estate trend in that community? To determine if an Edmonton neighborhood's property values are going down or to tell if it is becoming one of Edmonton's hot spots, use the absorption rate tool.

How much was the bank property appraisal?

Financial institutions base their appraisals on the "Emily System", which is an accumulation of recently sold comparable properties. If there are no relevant sold Edmonton properties or if your home is more unique, independent appraisers can do a "cost to replace" appraisal. A good Edmonton real estate agent will complete a "Sold Comparative Market Analysis", (CMA) for you, prior to submitting an offer to purchase.

Is the property staged to avoid any defects?

Don't be fooled by the staging in a property. This is one of the biggest mistakes a buyer can make. When viewing a home, overlook the nice furniture and freshly painted walls. Take a close look at the overall condition of the property. An easy way to know if a dwelling is shifting is to open and close the windows and doors.

Do you know what a realistic offer should look like?

No matter if you are buying a home in Edmonton in a buyers market or a seller's market. Submitting a realistic offer is important. When a home is priced accordingly to the real estate market, don't try to "low ball" the seller, you will end up paying more because you have insulted them. Do your research.


For more information on submitting real estate offers in Edmonton and find an experienced buyer's agent, contact an Edmonton Homes & Gardens Real Estate Agent.

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The first step to buying a home is deciding if you are ready to become a homeowner and start building equity for your future. There is a lot to know when it comes to buying a home in Edmonton. Whether you are buying your first condo, moving to a bigger house or downsizing, our in-depth 5 step home buyers Guide will take you through all the steps.



  • First: Get pre-qualified for a mortgage and choose a financial lender
  • Second: Choose the best Buyers Agent or Edmonton
  • Third: House hunt like a real estate professional online and in person
  • Submit an offer with confidence by understanding Alberta Real Estate contracts
  • Fifth: Be prepared for other costs associated with buying a home in Alberta

STEP 1: Financing - Pre-approval and choosing a financial lender

Not all financial institutions are the same. If you choose to use a who works at your personal branch, keep in mind, most persons who work in a bank get paid by the hour, unlike a mobile mortgage specialist who only gets paid when they have completed, processed and get your mortgage application approved. For a list of mortgage brokers, contact us.


The first step to buying a house or condo in Edmonton is finding out how much your bank is willing to lend you based on the lenders' rules. Keep in mind with the change of Canada's new mortgage qualifying rules. You must qualify at two per cent higher than what your current interest rate will be.


Your lender will look at your income, your debts, your down payment and your credit rating. Having a verbal or online pre-approval is a waste of time and is not a real pre-approval. Your lender/Mortgage Broker will ask for a list of items to be provided including a recent bank statement, pay stubs, job letter, last 2 years of T4's for a true pre-approval.


A mortgage pre-approval will be in writing which is normally valid for 90 or 120 days. Pre-approvals will also include an interest rate guarantee - get this in writing from your lender to ensure you have documentation in the event interest rates rise prior to purchasing your new Edmonton home.


LEARN MORE ABOUT MORTGAGES

Our Edmonton Real Estate Agent Team is here to help you. We have several mortgage brokers we deal, feel free to reach out and ask us for a list of mortgage specialists.

STEP 2: Choosing the Right Buyers Agent

If you are like most people, you want to find a Realtor who is a good fit. Both real estate agents and Realtors have had to undergo a certain amount of training in order to qualify to help you buy or sell real estate. However, in Canada, in order to be considered a Realtor, a real estate professional must be a member of the Canadian Real Estate Association (CREA). There are several Realtors in Edmonton who choose not to work with buyers, while others choose to work solely with buyers. These Realtors are known as Buyer Agents.


There are several ways to find a buyers agent who will be a good fit. Most Realtors in Edmonton have their own websites. Some of these websites are very generic, while others provide personalized extensive real estate information. Some Realtors will also specialize in a specific part of Edmonton or have a real estates specialty such as condominiums, luxury homes, relocation moves or acreages. Another great way to find a buyer's agent is to visit open houses. However, if you fall in love with the house, it is in your best interest to seek out a different agent.


Interview a few different Realtors before signing a commitment called a "Buyer Brokerage Agreement". Remember this agent will be helping you make the biggest investment of your life and you should make sure they have your best interests in mind. Below is a list of questions which may help in the interview process when buying.

  • How long have you been a REALTOR?
  • Do you have any other real estate designations?
  • How much commission do you charge?
  • Will you show properties that are at a lesser commission offered?
  • How will you keep me informed on new properties which meet my search criteria?
  • What is your real estate niche or specialty?
  • Do you have a list of references I can contact?
  • How many homes are you willing to show me (If this number is less than ten - move on to another agent)
  • If I cancel my agreement, is there a fee?
  • When are you available to show me homes (Note* Part-time Realtors may not be able to accommodate your schedule)

LEARN MORE ABOUT BUYER BROKERAGE AGREEMENTS


To book an appointment for your personalized Edmonton home buying consultation, contact us.

STEP 3: House Hunting like a Real Estate Professional

Let's face it. You have been house shopping for your home online and have seen a few "bad real estate photos", or a property with no photos or wonder why a particular house has been on the market so long. The reality is, there may be great homes, but the sellers chose the wrong agent to market their home.


When you come across those bad real estate photos, try to look beyond the photographer, the horrific lighting and the messy house with clothes on the floor, pets or worse yet, the seller's children in those photos. If the selling agent has not taken the time to properly market a home, the sellers are not happy and want their home to be sold.


When there is only one exterior photo on a property, read the comment section. Odds are, this home is tenant occupied, or not in show-able condition (Very messy) or the sellers have chosen really ugly paint colors for the walls. These homes are usually fantastically priced properties that need a little TLC and some cleaning. If you are looking for a home in a particular area, learn to calculate the absorption rate to make the best financial purchase and make a great real estate deal.


Don't be fooled by pretty homes. Both a Seller and the Sellers Realtor want as many potential buyers into their home, but don't be fooled by how lovely it looks inside with that sparkling granite counter-top, cutest little girls rooms or awesome man cave. Take a deep look at the finishing. This is the best indicator for how well the home has been built and taken care of. A great buyers agent will point out imperfections they notice.


Don't overlook homes which have been on the market for a while. These properties may have had several price adjustments, especially in Edmonton's real estate market and may now be below or at the proper market value. Take a second look. There may also be other reasons which factor in a long time on the market which can include the property was "tied up" a few times with other offers which have fallen apart on financing or an inspection. Remember, when a pending offer is on a home, it can be conditional for a few weeks at a time. Another reason, a property may be longer on the market could be due to a "lis pendens", probate, civil enforcement or other government enforcement contingencies.


HOW TO CALCULATE THE ABSORPTION RATE IN ANY NEIGHBORHOOD

STEP 4: Submitting the Offer

Normally there are two basic (three when purchasing a condominium or more with rural properties and acreages) conditions or "subject to's" when purchasing a home in Edmonton.


  • Financing: Although you have completed your pre-approval, this does not mean you have been qualified to purchase that dream home. Once an offer has been accepted, your financial institution will need to submit your offer to the underwriter and your credit will be checked again. Do not go out and purchase any major items which would require financing such as a new vehicle during this time frame. If you are obtaining a CHMC Mortgage, the credit check will be done for a minimum of the last seven years.
  • Inspection: Hire a certified residential property inspector with a good reputation and credentials. The cost in Edmonton for a certified residential home inspector usually costs between five to six hundred dollars. No matter what type of home you are buying, including foreclosed properties to new builds. This small fee can save you thousands of future dollars.
  • Condominium Documents (Condo purchases): Always double check you have received all condominium documents and review them. If you do not understand the legality or do not have the time, have your real estate lawyer review them for you. There is a lot of information in the condominium documents and you do not want to be surprised with a $30,000 special assessment when you move in.
  • Rural and Acreage: Septic inspections are beyond the scope of a standard home inspection but when purchasing an acreage in Alberta, they are crucial. Other conditions you should add to your rural purchase agreement include a satisfactory water well, water flow, water quality tests and pumping equipment inspections


STEP 5: Buyer Beware & Other Closing Costs

Calculating the cost to purchase a home in Edmonton is pretty simple. Calculate your total down payment plus add one and a half per cent of the total purchase price of your home. For example on a $300,000 home, with a five per cent down payment, you will need a total of $19,500. Your financial institution will ask to see this additional amount to ensure you have enough money for closing costs such as lawyer fees, title transfers, mortgage application, and appraisal fees. Additional mortgage fees like CHMC can be added into your mortgage or can be paid up front.


If you have added certain terms into your purchase agreement, such as "Seller to repair a broken window, steam clean carpets, remove dog feces from the backyard, etc, you may also want to add an additional clause


"Seller will allow the purchasers to complete a satisfactory walk-through regarding the terms of the property prior to possession"


In Alberta, the transfer of real estate titles is processed a bit different than other provinces and keys do not get released until monies have been received by the Sellers lawyer. In the event and terms were not completed, it is more difficult for remediation this after.


Note* If you are purchasing a foreclosure, keep in mind, that this property is sold "As Is, Where Is".


If you have any other real estate question about purchasing a home in Edmonton or the surrounding area, contact us by email.

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Making your home pet-friendly during the selling process

Your pets may be your best friend, but some buyers are allergic to and find pet odours offensive. Other buyers spend more time admiring your reptiles or playing with the cute puppy than viewing your home. When selling, it is best not to have them in the home. If this is not an option, keep them in a crate including cats.


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Pets are smelly

  • No matter how often you bath your animals, they still smell. There are ways to eliminate some of the odors and pet dander. This means more cleaning and more cleaning. Wash your pet beds, blankets and toys on a weekly basis. If you own a bunny, ferret or reptile, cleaning their cages must be done on a daily basis. Don't forget the kitty litter! If not address, your pets can reduce the value of your property.

Pets are messy

  • Those cute and cuddly companions are very messy. We know as soon as we turn our back, they are jumping up on counters and couches. Vacuum your furniture daily. A buyer may sit at your kitchen table while writing you an offer and noticing animal hair hanging onto your counters and baseboards. Replace any chewed on baseboards or ripped carpets.

Don't forget the outside

  • Buyers will go into the backyard, garage and alleyway to check out your next door neighbors, pick up the dog feces.

Don't "fa-breeze"

  • If you are trying to cover up pet smells with a chemical, it will smell worse. The only way to really remove pet smells is by cleaning. Open those windows and air out your home.

One of the things Edmonton Real Estate Agents face when listing homes with pets is telling the seller that their home stinks! Homeowners need to understand those pet odors can kill a home sale! This can be a difficult conversation because there are folks who look at their pets as family members.

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Data is deemed reliable but is not guaranteed accurate by the REALTORS® Association of Edmonton.