See video followed by written blog
Recently, I was talking with a friend who was expressing just how happy he and his wife were about having their offer accepted on their very first house purchase. They were ecstatic. However, as we chatted this happiness slowly turned to something else. He said, I have been so caught up in all the buying details that I just realize I don’t have a clue what to do next. What if we do something wrong?
I need help!
I smiled and said no worries, you’ve got it. I reached into my files and handed them a “Step by Step Guide, What To Do After The Seller Accepts Your Offer – 12 Things You Should Know”. I could see the relief in theirs eyes right a way.
If you want to know the details of what I gave them then watch the video below or read the written blog following that.
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If you want to chat to find out more about buying or selling in Victoria, finding out the value of your home, or any other real estate topic then simply book a Phone or Zoom call at this link: https://calendly.com/rosemaryandgary
Enjoy!
Rosemary and Gary
“We love people and we love homes!”
Read the Full Written Blog Here
What To Do After The Seller Accepts Your Offer
Recently, I was talking with a friend who was expressing just how happy he and his wife were about having their offer accepted on their very first house purchase. They were ecstatic. However, as we chatted this happiness slowly turned to something else. He said, I have been so caught up in all the buying details that I just realize I don’t have a clue what to do next. What if we do something wrong?
I need help!
Stay to the end of this blog and I will tell you how to get your own printable copy of this helpful guide.
1 – Subject Conditions – Get Completed On Time
Subject Conditions are clauses in the Purchase Offer contract that point out specific conditions that need to be met before a deal can be made. Some of these may be inspections, insurance coverage, review of the strata docs for strata properties, review of the title by your lawyer, funding approval by your financial institution and more.
If you have any Subject Conditions then you must waive or accept as done before the subjects waiver or acceptance deadline. This is typically within 5 days of the offer but could be a shorter or longer period.
Also, remember in BC you now have a 3 business days rescission period where you can cancel the Offer of Purchase without any reason. However, there is a cost of .0.25% of the offer price to do this, payable by you to the seller.
You can have a professional home, roof, fireplace or a chimney or other inspections done. It is highly recommended you do a whole home inspection at least. The cost is usually around $400 or more depending on the size of the house or strata property.
The purpose is to make sure you know the condition of the house you’re buying and address any major issues upfront. If you need to cancel or renegotiate the offer based on the results of the inspection if something significant is found, then its important to notify the seller’s agent before expiry date and time of the subject conditions timeframe.
If this is a strata property you are buying you will also want to go through the last 2 years of all strata documents including the contingency, depreciation, and engineering reports, meeting minutes, and the K-Form, etc.
You will want to make sure you can get insurance for your house or strata property. Most mortgage providers will require that.
Make sure all documents requested by your mortgage provider are into them right away and get a reconfirmation of your mortgage funds being approved. You don’t want any surprises on closing day.
If you have other conditions then follow on these up quickly as well.
2 – Make Your Deposit By Deadline
You will need to get your deposit money put into your brokerage trust bank account usually within 24 to 48 hours after the Subject Conditions have been removed or accepted.
IMPORTANT! If your money is not received within the specified time on the purchase contract then the seller can terminate the contract. So, if you have any issues getting your deposit in, please let your Realtor know as soon as possible.
The next 4 Tips should be looked at if you are financing a mortgage from a lender. If you are paying cash and do not require a lender then you can skip these.
(And that is certainly a nice position to be in).
3 – Do Not Buy Anything On Credit
It is highly advisable that you DO NOT buy anything on credit at this point. No new cars, furniture, appliances, etc. Nothing terribly expensive and nothing you have to finance. This can cause your debt to income ratio to get skewed and your home loan can be denied.
4 – Do Not Buy Anything For the House (Just Yet)
This is important! DO NOT buy anything for the house that you can’t return. Wait until after you have the keys. If you must buy something, like a new stove, check with your lender before buying to make sure it won’t mess up your loan approval.
5 – Do Not Perform Any Large Financial Transactions
Sorry to repeat this. However, DO NOT pay off a bunch of debt or make large deposits that can’t be explained. You don’t want your lender wondering where all this money suddenly came from.
6 – Get Your Lender Everything They Ask For
AND as quickly as you can! If they ask for a bank statement and it takes you 5 days to return it, it might delay your closing date. So, give them what they want ASAP.
7 – The Waiting Game
Your lender will order the appraisal, so nothing for you to do on that end. We just wait for the value report to come back which will probably be from a few days to a week (but could be longer).
8 – Get To Know The Neighbourhood
Practice driving to work from the house. Talk to the neighbours. Drive around the area at night. Make sure you like the area, your commute time, the schools, and whatever else might be important to you.
9 – Start Your Move In Plan
You should start your moving plan and arrange for movers or friends to help you get your furniture and personal items moved on closing day or shortly thereafter. Beer and pizza might entice some helpful friends. You will also need to contact the phone and utilities companies for your electrical, TV, internet, and other accounts. You will also want to close or transfer those accounts from your previous residence if applicable. If coming from a rental make sure to give a full month or more written notice to your landlord to cancel your rental tenancy agreement to avoid having to pay an additional month.
10 – Book Your Real Estate Lawyer
You will need a lawyer or notary to do the property conveyancing. If a complicated sale or you will be reviewing the title then choose a good lawyer. If a simple sale transaction then maybe a notary will do and possibly save you a bit of money. They will meet with you about a week before the closing date to make arrangements for your payment and to sign all the necessary documents.
11 – And Finally
Depending on your circumstances you might want to:
a) Revise Your Will
b) Talk to Your Tax Accountant
c) Change Your Mailing Address
12 – Take A Deep Breath
It can be scary but if you start to get worried, know that you can always call your Realtor. They have done this many times and will help you however they can.
Congratulations! You should be good to go!
I have also put together a free, printable Guide on this topic that will be a good reminder for you. You can find this at this link: What To Do After The Seller Accepts Your Offer.
Thank you for reading this blog and I will see you next time.
Gary…
“We love people and we love homes!”