If you’re planning on buying a home in Toronto soon, it’s not going to be easy. That’s not meant to discourage you; it’s meant to let you know that you should prepare yourself for some obstacles along the way. The fact is, right now, the Toronto real estate market is considered to be a seller’s market, so the home seller is holding all of the cards. So if you’re thinking of buying sometime soon, here’s how you can prepare yourself for buying a home in this competitive market:
1. Stay positive! 🙂
Buying a home in a seller’s market is going to be frustrating. While it’s easier said than done, make sure you stay positive throughout the process. The best way to do that is by preparing yourself for what you can expect along the way. Keeping a positive attitude about the process can help ensure you make smart well-thought-out decisions instead of acting on impulse.
2. Start early.
You know the saying, “there’s no time like the present”? That’s especially true when it comes to starting your home search. The fact is, it’s going to take time. While it might not take very long to find a home you like, it will take time for you to actually get an offer accepted on one that you want. In a seller’s market, the person selling the home has the upper hand. Moral of the story? Start looking early so you give yourself a lot of time for things that can, and will, come up.
3. Have everything ready.
Because you have to move quickly, you’ll want to have everything ready to go. That means, being pre-approved for a mortgage and having your deposit ready to be withdrawn.
4. Get on an automated email list, and be quick.
Your real estate agent can add you to an automated email list that will send you the latest listings matching what you’re looking for. Why does that matter? It can help to make sure you see the latest listings as soon as possible, and once you do, you’ll want to quickly act on it. Want to get on an automated list? Just fill out this quick form here, or send me an email and tell me what you’re looking for.
5. Leave your family out of it.
While we all want the advice of the people close to us, I’ve seen a lot of people miss out on homes because they wanted to wait a few days for their parents or friends to make arrangements to see the place they want to buy. In a seller’s market, homes are sold almost as quick as they are listed, so the reality is that you can’t afford to wait days for other people to take a look.
6. Prepare for a bidding war.
A bidding war is when there are multiple offers on a property, and they’re all competing to buy the home. There are a lot of things you can do to prepare yourself for that and come out on top. How? There’s more on that right here.
7. Consider making a bully offer.
If you find a home you want to buy, and the seller is accepting offers on a certain day, it might make sense to approach them earlier with a bully offer, which is basically an offer that you present ahead of everyone else. Your offer will have to be higher than the list price of course for a smart seller to consider it, but bully offers do get accepted from time to time, so if you find the perfect home, it’s worth a shot.
Buying a home in a seller’s market isn’t easy, but by being prepared, you can put everything in place to make sure you have a good chance of coming out on top.
Do you have your own tips for someone buying a home in a seller’s market? I’d love to hear about it in the comments below.