You’ve found the place your perfect nest, but do you need an agent to put in an offer? The answer is no. It is absolutely legal to purchase a home without the help of a real estate agent in all of Canada, and it’s something an increasing number of buyers are opting to do in an effort to save on expenses and retain control.
It does require doing your due diligence, however. You need to know your contract, how to determine a fair price for your offer, and how to negotiate with the seller or his or her agent. We’ll take this a step at a time so you feel ready to present your offer.
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Why Some Buyers Choose to Skip the Realtor
Others avoid the realtor to keep costs down, as sellers will occasionally reduce their bottom line knowing there’s no buyer’s agent representing you. Still others are more comfortable being in control of communication, deadlines, and choices without having an intermediary. Whatever your motivation for going it alone, the only real difference you’ll see is having a few extra tasks to tackle.
Get Your Finances Sorted Before You Offer
The very first thing to do before you even put pen to paper is get pre-approved for a mortgage. Sellers know that this shows you’re a serious buyer and that you have a true budget. It’ll even help make the process smoother when your offer is accepted.
Research the Property and Local Market
Research recently sold houses nearby that are similar to this house and look at its length of time on the market. Check for any warning signs, such as a price drop, a listing that has ended and re-listed, or a list price of hundreds of thousands of dollars too high. With no professional market research, this is your only information on which to base an offer or deal with negotiations.
Understand the Standard Offer Document
Unless it’s Quebec, where it goes by another name, in all other provinces the standard contract you will sign will be an Agreement of Purchase and Sale (APS). This is a legally binding contract so it’s crucial that you get it right. It should also be the standard provincial form. You should obtain this form from a real estate lawyer, a licensed conveyancer or in some cases the listing agent (and even if you do not employ him to assist you)
Include the Right Conditions in Your Offer
Make sure your contract has contingencies like a financing contingency, home inspection contingency, and clear title contingency. These contingencies provide a way for you to get out if something doesn’t measure up down the line.
Decide on Your Offer Price and Terms
Don’t price your offer with your feelings–use market research. Beyond price, you also should state your deposit amount, closing date, and any requested inclusions (e.g., dishwasher, chandelier).
Submit the Offer and Negotiate Directly
Once your offer has been finalized, all that you have to do now is present it to the Seller or to his listing agent. Understand that a seller might not approve of your first offer, and may try to backpedal a few times before reaching a decision everyone agrees on.
Hire a Real Estate Lawyer to Close the Deal
Whether you have a realtor or not, a real estate attorney should never be passed up. The lawyer will review the contract and transfer the title. They are essential for a good, solid closing.
Final Thoughts on Buying Without a Realtor
Putting in an offer without a realtor in Canada definitely works out if you just put in some time learning it, do your research and you get a great lawyer on the legal parts. Yes it puts the weight and responsibility back on you. But it also puts you more in control. If you desire a really simple, much quicker, and less hassle way to buy or sell a house then AJ Buy Houses is going to be the best name you could use in regard to real property.
Frequently Asked Questions
Is it actually legal to buy a house without a realtor in Canada?
Yeah, I’m afraid so. There actually isn’t any law saying you can’t deal with the property without a realtor as long as you have a good Purchase Agreement signed for your offer and it’s also dealt with by the lawyer then you should be able.
Do I still need a lawyer if I’m not using a realtor?
Absolutely. You need to hire a real estate attorney. That’s not a nice to have. That’s the person who’s going to verify the title and make sure that your purchase contract is sound. He is going to oversee the closing. Don’t skimp here!
Will sellers even accept an offer from a buyer without an agent?
Most of the time yes – sellers really just want a sound offer and a good reason to believe the buyer has the cash (and acceptable payment terms). In many cases, they may even like that since it’s just one less person involved.
How do I know if my offer price is fair without an agent’s help?
Check out comparable homes that have sold recently in the area, see how long this particular home has been on the market for, and if the price has been reduced recently. All of this initial research can help you formulate a reasonable price.
What happens if I make a mistake on the offer paperwork?
That’s precisely where the lawyer is crucial. They’ll go over all the paperwork before it’s final, spot any mistakes, and ensure you have the proper conditions protecting you, such as those for financing and inspection.
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