| Oct 21, 2020
Toronto real estate is experiencing a strong seller’s market right now, with high demand for homes (especially single-detached dwellings) and record-low inventory up for grabs. If you already own property in the 416, that is great. If you’re hoping to buy something, then you’re going to need a strategy. 🙂 With stiff competition and a limited budget, here are some tips for buying Toronto real estate in this hectic seller’s market.
1. Get pre-approved for a mortgage. Having your finances in order before you start home hunting offers a number of benefits. First of all, you’ll know exactly how much you can spend, making it easy to narrow down your options. Secondly, your offer (when you’re ready to make one) won’t be contingent on financing, since you’ve already been pre-approved, and when you find “the one,” you’ll be able to move forward quickly. Finally, a mortgage pre-approval locks in the current interest rate for up to 120 days. In today’s record-low rate environment, that means more purchasing power – which is always appreciated by buyers in a pricey market like Toronto.
2. Time is not on your side. As I’ve already alluded, time is of the essence when there is an abundance of buyers interested in a single listing. Aside from financing, having all your ducks in a row will allow you to move forward quickly and with confidence. That means pre-identifying your house-hunting criteria. What type of home are you looking for, and where? How many bedrooms and bathrooms do you need? Are you looking for outdoor space? Any other specific feature, such as a multi-vehicle garage or a dedicated home office? But having a clear vision of what you want and need, you’ll save precious time by only checking out those listings that fit the bill.
2. Make your best offer. A seller’s market is not the time to test your negotiation skills. Take that to the rummage sale. HA! There’s lots of competition and bidding wars are common, so when you’re ready to make an offer, make it fast and make it count. The goal is to make it as attractive to the seller as possible, by limiting offer conditions and presenting the best possible price right off the bat. Here’s where it helps to work with an experienced real estate agent. A good agent knows how to navigate these market conditions and will have already done a comparative market analysis on your behalf, informing you of what other properties in the area have sold for recently, and what would be considered a solid offer.
Toronto real estate has remained strong through the COVID-19 pandemic, and while many homebuyers were likely eagerly awaiting a softening of the market coupled with price declines, this did not materialize. On the up side, Toronto real estate is holding strong and continues to be a wise investment – if you can get a foot through the door into this cut-throat market. Working with an experienced real estate professional is your best defence.