Whether you’re a first-time buyer or a looking to purchase your third property in Toronto, I’ve noticed a theme of recurring questions from my clients. Toronto’s real estate market is continuously changing, therefore if you’re new to real estate or a seasoned pro, there are no silly questions about the market as it’s an ever-changing landscape.
There’s so much to consider when purchasing a property in Toronto, and because of this, I created a detailed buyer’s guide to help people in the GTA make educated decisions (scroll to the end of this blog to download your copy).The guide covers the following topics:
- Where is the best place to live?
- Condo vs House – which is better?
- How much will it cost a month to own in Toronto?
- How do I upgrade from a condo to a house?
- Which neighbourhoods have the best schools?
- How do I get a mortgage?
- Can I afford to buy?
- Should I buy a renovated home or a fixer-upper?
and so many more topics that I have been frequently asked by buyers here in the city.
Here is a quick snapshot of the buyer’s guide, with my most frequently asked questions, with responses to give you an idea of what to expect when speaking with highly experienced and professional Toronto real estate broker.
1. When Is The Best Time to Buy?
The answer to this question varies by person, along with their personal real estate goals and the current state of the market. Good news is, I have a lot of experience working with buyers from all walks of life, from purchasing their first home to purchasing their forever home so I will work with you to tailor a plan which works best for you.
The time of year has a large influence on real estate prices, and the housing options available on the market. In the Toronto real estate market specifically, we usually see two peak seasons and lower seasons for real estate activity. The spring market is usually when the higher number of real estate transactions occur throughout the year, making this a more competitive time for buyers; sometimes December is a great time to be able to negotiate as there are often fewer buyers aggressively looking. Nonetheless, when working with a highly engaged realtor, you’ll be able to navigate the market wisely and make smart purchasing decisions.
Another thing to note is that the Toronto real estate market moves very quickly! In November 2018, the average available properties on market sold within 21 days. This means if you’re serious about purchasing property having everything in order (such as a mortgage pre-approval) can be crucial to purchasing at the best time.
2. That house sold for HOW MUCH over asking? (deals with buyers perceptions that houses sell for so much more than they are worth)
In Toronto’s current real estate market, this question is very common. Anyone that has been following the Toronto market or has purchased over the last decade, will understand the housing price increases.
I often tell my clients:
List Price = Marketing price. This price is often used to spark some attention and get buyer’s interested. It does NOT represent the actual value of the house.
Market Value = What a property should sell for with a willing buyer and seller.
Ex. Market Value of a home might be $950,000
To garner some attention the property might be listed at: $799,000
If the house sells for $956,000 it only sold for $6K OVER it’s actual value. (but if numbers like that were presented in the media…it just wouldn’t look the same 😉
3. How can I make sure I buy the house of my dreams?
Toronto’s real estate market is very competitive due to the lack of available homes and condos for sale. As a result, in order to be a successful buyer, it’s important to have a very curated list of needs and wants. By having that list of 3 key needs & wants we will be able to work together to find the home that best suits YOUR needs and maintain an edge over other buyers looking at the same properties.
If you’re interested to learn more about the techniques I use with my clients, let’s set up a time to chat.
4. Should I buy or sell first?
Every seller is faced with this same predicament: ‘If I buy first, I just might not be able to sell my current place and, if I sell first, I just might not find a suitable property to buy’. So what should you do?
A foolproof way for you to decide is to determine which scenario would be the most difficult for you right now, in today’s market, wherever you are. Would it likely be more difficult for you to sell your home or more difficult for you to find a home to buy that fulfills your needs?
Then do the most difficult option first.
No matter which you do first, plan the timing of both your purchase and sale to occur in the same general marketplace timeframe.
To learn more about the pros and cons of both visit: https://jend.ca/to-sell-or-buy-first/
Still interested in learning more about the buying process, from start to finish. Download a copy of my detailed buying guide to get familiar with all the steps involved!