BUYING IN A SELLER'S MARKET: WHAT YOU NEED TO KNOW!
It’s no secret that the real estate market in Toronto and the burbs is tumultuous at best, specifically for buyers. Although it’s totally possible to find the home of your dreams in the Six (trust us, it is), buying in a seller’s market takes a certain level of practice and patience. We have 5 tips to help you prepare if you’re currently attempting to make a property purchase in TO.
What is a seller’s market?
Before we launch into the tips, we think it’s important that you understand what we mean by “seller’s market”. Basically, a seller’s market is one in which there are more buyers searching for properties than there are properties available. This puts sellers in a favourable position and can make purchasing a little trickier for buyers. The competition is tight and that means bidding strategically is even more important, but we have your back on that one.
5 Tips for GTA Buyers
1. Get pre-approved for a mortgage
A mortgage pre-approval gives you insight on your maximum price which cuts out a lot of worry and may even give you more flexibility than you initially anticipated. Plus, you’ll be good to go right away when you get the green light on an offer—pre-approvals demonstrate your seriousness to sellers.
*Remember, a mortgage pre-approval doesn’t guarantee you’ll get the loan you’ve applied for. There are certain conditions lenders need to verify about the property before providing you with a mortgage.
2. Prepare to move fast
Time is of the essence in a seller’s market, so you need to be ready to jump on any properties that hit the mark for you. We always make sure our clients feel totally comfortable and excited about a property before putting in an offer, but you also need to remember there may not be time to sit and think about it for too long.
3. Keep contingencies to a minimum
There are generally certain contingencies that need to be in place but try your best to limit the clauses you add to your offer. Many nit-picky contingencies may seem like a big hassle to the seller who will likely move ahead with another similar offer to yours but with less of the fine print attached.
4. Write an offer letter to the sellers
We’re firm believers in offer letters when you’ve found a property that you adore. Telling the seller a bit about yourself and why you’re obsessed with their space may be the little detail that pushes your offer in front of the pack if there are other offers in the running.
5. Try to stay as positive as possible
Buying in the GTA is hard but it’s far from impossible. We’ve noticed with our clients, that after 2, 3, or even 4 real estate let downs, when they do find and buy their perfect property, it always ends up being one of the closest to their actual wants and needs. Your perfect property is waiting for you, but it might take a bit of strategy, patience, and positive thinking to find it.
That’s where we come in. With a combined 10 years of Toronto real estate experience, we know where to look, who to talk to, and the best ways to help you purchase your dream home. Get in touch with us to learn how we can make sure you find home sweet home in a seller’s market.
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