| Buying

Venturing into the real estate market as a buyer these days can be a daunting experience. The market is not on your side, as there are far more people trying to buy a home than trying to sell one. For a seller, the transaction is easier than it has been for a long time. They often receive multiple offers far above the asking price, with few conditions of sale. With so many people looking for a home, bidding wars are common.

On the other hand, buyers have their work cut out for them. There is no sign of the market slowing down in the foreseeable future. The good news is, with time and patience, it is possible to succeed as a buyer, even in a market that is stacked against you. 

Here are some tips to help you succeed in one of the strongest seller’s markets Toronto has ever seen:

Know Your Market

The first step to a successful purchase is research. Find out everything you can about the neighbourhood you want to live in. How much are houses currently going for? When you know the market, you can avoid paying more than you have to relative to the other homes in the area.

While you’re doing your research, don’t forget about property taxes. While not part of the purchase, you need to keep them in mind before placing any offers. Having a complete picture will help prevent you from getting in over your head with your monthly expenses.

Accept the Reality of Multiple Offers

With such tough competition, you’re likely going to have to deal with multiple offers to compete with other buyers vying for the same property. In such cases, it’s crucial to know your rights as a buyer. While the details are confidential, the seller’s agent must disclose to you if there are other offers, and how many. This knowledge will help you decide your next move. Should you increase your bid slightly to boost your chances of securing the home? Or is it time to walk away and resume your search elsewhere? 

It can be frustrating to find out you lost a home because another buyer outbid you by a small amount. However, it’s critical to have a firm ceiling on your budget that you will not go over. When your emotions run high, you risk getting pulled into a fierce bidding war. It becomes tempting to overspend and pay more than you can afford or more than the home is worth. 

Be Flexible

Sometimes, you’re going to have to walk away from a house you love. Buying a house in this market means you will face disappointment at times. You may have to place many offers before securing your new home, but patience and perseverance will pay off. You might need to consider living just outside your desired area at first. You may dream of a house in downtown Toronto, but right now, the timing just isn’t right. However, a neighbourhood just outside of downtown with easy access to transit might suit your needs just as well, and at a price you can afford. This backup plan can help you get a house now so you can start building equity. As that equity grows, you may be able to upgrade your home a few years down the road.

Get Pre-qualified

Want to know one of the best-kept secrets about successfully buying during a seller’s market? It isn’t always about outspending the highest bidder or placing an unconditional offer. One of the best things you can do to improve your chances is simply to prove that you can pay for the house. If you’re serious about buying, get pre-qualified for a mortgage before making any offers. A seller will often take a lower offer that’s a sure thing than a high offer that’s likely to fall through. 

Have Your Deposit Ready

To secure your purchase, you will need to place a deposit on the property. This amount is usually 5% of the purchase price within 24 hours after the seller accepts your offer. Having the deposit readily available decreases the chances of the deal falling through and having to start the process all over again. 

Work With a Realtor®

When buying a home in this challenging market, an experienced local real estate agent is your best resource. You do not have to pay anything out of pocket for this expertise because the seller pays all commissions. A qualified Realtor® will guide you through every step and increase your chances of success. Often, they know about houses available that aren’t listed, which means you will have first dibs on properties other buyers will never even know about.

We are pulling out all the stops to help you find your new home or condo. Here are some other topics that will increase your chances of succeeding as a buyer:

Have questions about what’s happening in the Toronto real estate market? Call or text to learn more: 416-500-5360 / Email: info@rashidnotash.com