If you are considering buying a home in Toronto today, you should be prepared for one thing…competition. With current demand outweighing supply (for many housing types across the GTA), it is common to see more than a few interested buyers competing for one property.
Although this is great for sellers, it may put a strain on the buyers. Here are a few tips to stay on top of the game and maybe even avoid a bidding war when you find the home of your dreams.
Keep Emotions in Check
One of the most important things to keep in mind when considering a sought-after property is being able to keep emotions in check and let logic guide you. It can be very easy to get caught up and either overbid on a property or decide too quickly that it is the one you want. Having someone with you that knows your needs (and your budget) can be helpful in keeping you on track. If several years have passed since you last went through the home-buying process, getting as much information as you can from the get-go will help to ease the process.
Know Your Budget
The first thing you should do is speak with your mortgage specialist to find out what amount you will be pre-approved for. Know exactly what you can afford. Next, find the most expensive home in your price range. This may seem counter-intuitive (especially in terms of budgets) but the important thing is not to compromise on key elements. Find the best quality for what you can afford. With that in mind, if your budget is $500,000, do not look at the homes listed at that price. Start your search in the upper limits of your range but have a little wiggle room available to negotiate. Again, with highly sought-after properties, people might be willing to put in offers well above the asking price, so be prepared!
Keep Your Offer Clean
Another way to make your offer to stand out is to make sure it is kept simple: with few, or no, conditions. In today’s market, even conditions such as sale of your current property or financing can be enough for you to lose out. Any conditions should be small or incredibly important. If you will not be able to sleep at night with worries over the condition of the property, a home inspection clause and a budget for repairs would be necessary, even just for your peace of mind!
Know What You are Getting Into
Ensure you have examined comparable properties in your desired neighbourhood in order to have an educated idea of the true market value. This is important so that when it is time for you to sell, you are less likely to lose money. Avoid buyer’s remorse and hire the right home inspector. Most importantly, make sure you get the right real estate agent on your side. An agent who has years of experience and will work on your behalf to negotiate the terms can help you purchase the home of your dreams at a price that works for you!
In Toronto’s real estate market, many are inclined to believe the sellers have all the power. It may seem like anyone can put their home on the market at any price, but remember: there are always ways to find the right home on the right terms. If you have any questions, or already have a property in mind, please feel free to give me a call at 416-921-1112.