You have the funds, you’ve been pre-approved for a mortgage, and you’ve watched every home buying show on HGTV. You probably feel like you’re ready to buy a home, right?
Not so fast. The competition is fierce in our city; according to TREB, homes are only on the market for an average of 15 days. The number of listings is going down, the average listing price is going up, and buyers need to do everything they can to stand out from the competition.
Luckily, I have just the advice to get you ahead of the game. Here’s how to successfully buy a home in a seller’s market:
Set Realistic Expectations
Start your search with accurate knowledge of the current market–in other words, don’t use the asking price as any sort of indicator of what you’ll actually pay. Bidding wars are common in the city, so you’ll typically have to look for homes listed well below your budget to stay within your means.
Keep An Open Schedule
You have to be prepared to see a home the day it comes on the market. Being the first buyers to step in the door will give you an extra advantage, which plays perfectly when you have a strong offer to present. Keep your weekend and evening plans to a minimum, because you never know when your dream home will pop up on the MLS.
Have Your Deposit Ready
In Toronto’s market, going the extra mile can put you well ahead of the game. That means having your deposit funds ready and liquid when you’re searching. Better yet, have more than the minimum deposit amount (5% of the sale price) if possible. You may have to save for longer, but your offer will look much stronger to the seller.
Make Your Offer Early
A pre-emptive offer (otherwise known as a bully offer), is when you present your offer before the set offer date. While it is seen as an aggressive approach, it’s something to consider if the seller is willing to see it. Just because you make a pre-emptive offer doesn’t mean they’ll actually look at it; some sellers will still wait until the established offer date to take a look.
Tell Them About Yourself
At the end of the day, buying and selling real estate is an emotional and personal experience. Maybe you can’t make an outstanding monetary offer, but what you can do is provide sellers with a sincere, hand-written letter to share your love of the home, show the seller you’re invested, and hopefully tug at some heart strings.
Want to get the real advantage when buying your next home? Start your search with me! Give me a call or text at 416-997-8060 or send me an email at rebecca@onthemoveTo.ca to chat.