How To Not Lose Out
On A Property You Are Interested In
(These are the thoughts of Ben Levene, CEO and Director of Sales at CapitIL Real Estate)
With few opportunities on the market, it can be hard to find the right property at the right time for the right price.
Therefore, when you find a property you think you want to buy, I encourage my clients to move on it.
This does not mean rushing into signing a contract the day you see it, but it does mean putting in an offer, coming to a verbal agreement, and in good faith continuing to proceed subject to all the necessary due diligence.
Once the contract has been sent out, it is not appropriate for the seller to show the property to anyone else.
Therefore, if you are seriously interested, you should come to an agreed price, move to contract and then do your due diligence.
The Due Diligence Process
The most common parts that make up the due diligence process:
• Bringing in an evaluator that will determine for the what the property is worth. If you are taking out a mortgage, the bank will lend only based on this amount.
• Bringing in an inspector to highlight any significant issues you may not know of. If significant issues exist you can pull out or ask for the seller to drop the price (no guarantee they will agree)
• Your lawyer will review all documents and recommend besides the above two any extra due dilligence required. Your lawyer is critical to the due diligence process.
Why You Need to Move Quickly
If you wait too long to make an offer and start the due diligence process, you will miss out.
As a broker, I never want my clients to feel as though they are being pressured to move forward.
However, through my life as a broker, I have had many disappointed clients who miss out on opportunities they wanted because someone else made an offer before they decided they wanted to go through with it.
As such, I always encourage those who believe they are serious about the property they have just seen to move forward to the due diligence stage as quickly as possible.