Real estate transactions have a number of complex details, and many first-time home buyers may not realize that there’s a lot more on the table during the negotiation process than just the price of the property. 

As a buyer, understanding which details are eligible for negotiation is a critical aspect of securing a great deal on your home. In this blog, we’ll break down important information about what you gain from the negotiation process as a home buyer – and how to do it. 

Not sure whether or not it’s the right time to buy your first home? Click here to read our blog on breaking the cycle of renting. 

Conditions 

Along with price, conditions (also called contingencies) are critical details of your purchase offer and can be negotiated after it is placed. The GTA’s most common buying conditions can vary and not all will be relevant to you as a buyer. 

Most conditions are negotiated on an include or exclude basis. For instance, if a buyer submits an offer which stipulates that their purchase will be conditional on the sale of their existing home, the seller may counteroffer with that contingency stricken because they do not wish to wait for the buyer’s home to sell but agree with the other terms of the offer. However, one specific type of contingency – the home inspection, can further influence negotiations after the initial offer has been accepted by the seller. 

Home Inspection Contingency 

While sellers are generally obligated to disclose known defects, a home inspection can reveal hidden problems that might not have been apparent during the initial viewing. As a buyer, having a formal inspection performed on the property is a crucial part of protecting your investment. 

What Happens When There’s an Issue?

If the inspection uncovers an issue, both you and the seller can negotiate on a potential solution. For example, you may be able to request that certain repairs be completed before the closing date or ask for a credit to cover the cost of addressing issues post-purchase. It’s crucial for both parties to approach this negotiation with transparency and a willingness to find a fair resolution. 

Looking for more GTA home-buying advice? Explore these related blogs for insider tips on mastering your purchase. 

• How to Maximize Your Buying Power
• Teardowns & Custom Homes in the GTA
• Is it Smarter to Sell Your Home Before Buying?

Timeline & Possession

Beyond price and contingencies, other major details involved in real estate negotiations involve timing and possession. Some buyers may seek a longer closing period to allow for sufficient time to secure financing or sell their existing home. At the same time, sellers may prefer a shorter time frame to expedite the process.

The closing date is a critical detail in your purchase as it determines which day the title of the property is transferred to you in addition to when the funds are transferred from you to the seller.  

While the standard closing date timeline is typically 30 to 60 days, flexibility can be negotiated based on your needs along with those of the seller. Ideally, your agent can assist you in striking a balance that accommodates the necessary timelines without unduly inconveniencing either party.

A similarly critical variable that can be negotiated is the possession date in which you are physically granted ownership of the home. Once again, your agent will help you secure an occupancy date that works for you. In some cases, sellers may require more time to vacate the property after closing. If this happens, your agent can help you secure temporary accommodations until you’re able to move in.

Want to know more about what you can do when purchasing property in the GTA? Explore these other blog posts. 

• 5 Things to Know Before Buying a Home in Greater Toronto
• Benefits of Using a Full-Service Real Estate Team to Buy Your Next Home
• 7 Tips for First-Time Home Buyers in Toronto

Mastering Your Purchase With Bahia Realty Group

From finding a great home and placing an offer, to negotiations, closing, and beyond, choosing the right real estate agent to work with is crucial when buying a home in the Greater Toronto Area. That’s where we come in – Bahia Realty Group.

As veteran experts in the GTA market, we’ll teach you everything you need to know about the buying process. After finding a home that’s well-suited to your needs and budget, we’ll negotiate tirelessly on your behalf – achieving a favourable deal based on your personal circumstances. 

Protecting Your Purchase

Taking buyer’s remorse out of the equation, our risk-eliminating performance guarantee ensures a great purchase. If you purchase a home with our team and are unhappy with it, we’ll buy it back from you up to a year later – that’s a promise.  

Ready to discover your personalized, full-service buying experience? Bahia Realty Group can provide you with a seamless process in one of the world’s toughest markets. Call 416-498-3444 or click here to send us an email.