2014 is predicted to be a very successful year for Toronto home sales. With the spring real estate market coming up, we wanted to talk to you about the five best strategies that you can use when buying a home in a strong real estate market.
1. Find The Right Agent
Find an agent who is on top of the market. Nice, well priced homes sell quickly, sometimes even in one day. You need your agent to tell you about homes as soon as possible so you have an opportunity to put an offer in right away.
For homes that have an offer date 5 to 7 days after coming on the market, you should still try to get to them quickly. The reason for this is that there is often a lot of due diligence that your agent needs to help you with in terms of finding out facts about the home. We also need time to make sure that all your questions get answered before the offer date comes along.
2. Get Your Financing In Order
This actually is the very first step to any buying process, getting pre-qualified by your lender to determine what your budget can be and how much you are comfortable paying in your monthly carrying costs. But when you are expecting more than one offer on an offer night, it is though to have any conditions in your offer. So you need to talk to your lender about how you can confidently offer without having a financing condition in place.
3. Hire A Home Inspector
You need to get a home inspection done in advance of the offer. Many homes do have pre-list home inspections that the seller and the selling agent have provided. However, we highly recommend that before the offer date, you hire your own home inspector to work in complete 100% your best interests. Just like financing, it is tough to have a home inspection condition in an offer when there is more than one offer.
Getting your home inspection done as soon as possible will help with the following:
– This leaves time to get questions answered regarding the home
– This also leaves you with time to get quotes
– A home inspection allows you to think about what the right price is that you want to offer for the home based on the condition it is in.
4. Your Deposit
As with any offer, the seller is expecting about a 5% deposit once the offer is accepted. When you are expecting multiple offers, it is very smart to have a bank draft ready and have cash in hand for the seller on the night offers are taking place vs. promising to provide the bank draft within 24 hours which is technically what you are allowed to do.
When we purchased our home in Leaside, we had the second best offer. However, we had a bank draft and the first place offer did not. The seller did not want to take the chance of the buyer not showing up without the deposit, so our offer was excepted.
Also, you should talk to your lender about arranging to have 5% deposit ready anytime. Typically this is done opening a line of credit so that you can draw on it at any time. And once your mortgage kicks in, you close your line of credit and put that money on your mortgage which is typically at a lower interest rate.
5. Giving The Closing Date That The Seller Wants
We make it a point to always find out what the best closing date is for the seller. If a buyer can accommodate The sellers preferred date, that helps strengthen the offer. We also have always done a great job in matching up the closing dates, once we turn around to list our client’s home for sale. That way there is not a lot of overlap and things usually work out very smoothly.
I you have any more questions visit our Facebook page. We’d be happy to answer everything that you’d like to know about real estate.