Before you make an offer, research the home the way an agent would: look at what similar homes actually sold for (not their asking prices), read the listing's price history and days on market, check the property's permit and renovation record, and for a condo, review the status certificate. Doing this homework is how you offer with confidence and avoid overpaying.
The asking price tells you what the seller hopes to get. It does not tell you what the home is worth. Good research closes that gap, and most of it can be done before you ever set foot inside.
What are sold comparables and why do they matter?
Sold comparables ("comps") are recently sold homes similar to the one you want, in the same area, of a similar size, age, and type. They are the single best guide to fair market value, because they show what real buyers actually paid, not what sellers listed for.
Ask for comps from the last 60 to 90 days, as close to the property as possible. Compare like with like: a detached home to a detached home, a two-bedroom condo to a two-bedroom condo. Adjust for differences such as an extra bathroom, a finished basement, a parking spot, or a better view.
Two homes on the same street can sell for very different amounts because of condition, layout, or timing. That is normal. What you are looking for is the range, so you know whether a list price is fair, a bargain, or a stretch.
the deposit you typically submit with an Ontario offer, held in trust and credited to your purchase at closing
How do I check a home's price history and days on market?
Price history shows every time a property has been listed, relisted, or had its price changed. Days on market (DOM) shows how long the current listing has been active.
These two numbers tell a story. A home that just came on the market and is priced near recent comps is usually holding firm. A home that has sat for weeks, or has been relisted at a lower price, often signals room to negotiate. A property that was listed, taken off the market, and relisted at a higher price can be a sign the seller is testing the market.
None of these signals is a rule. But together with comps, they help you decide how aggressive your offer can be and how much competition you might face.
What is the property's permit and renovation history?
Many homes have been renovated, finished, or added onto over the years. The question is whether that work was done with proper permits. Permits matter because unpermitted work can mean safety issues, insurance headaches, or costs to fix later.
If a listing advertises a finished basement, a new addition, a second unit, or major electrical or plumbing work, it is fair to ask whether permits were pulled and closed. Your agent can request this, and in many Ontario municipalities you can look up permit records through the local building department.