GTA real estate can be a tough market to navigate as a buyer. Generally speaking, conditions tend to favour sellers over the long term. Often, there are more people looking for homes than homes for sale.
Occasionally, the pieces fall into place and give buyers a window of opportunity. If that happens, it’s the perfect time to jump in and take advantage of the situation. However, ideal real estate conditions don’t always align with your goals for your future.
If the market doesn’t give you your golden opportunity, then it might be time to take matters into your own hands and make the most of whatever comes your way. In this post, we’ll show you some timeless methods that will help you secure the right house on your own terms.
Searching for your ideal new home in the vibrant City of Toronto? Start with our featured listings right here.
Arm Yourself With Knowledge
As experienced real estate agents, we would rather deal with a hectic seller’s market and a ton of knowledge than enter a favourable market with limited data. It’s true, information really is power.
Or, as the wise Sherlock Holmes once said, “Data! Data! Data! I cannot make bricks without clay!” With the right insight, market conditions almost become a moot point. There will always be a hidden opportunity waiting for you if you know where to find it.
For example, if inventory is scarce and every listing gets multiple bids, there will still be some up-and-coming neighbourhoods with surprisingly affordable homes. Even if we can’t find the “perfect” location, we know that just getting into the market in any way possible positions us for better things going forward.
If you’re ready for a change and you’ve assessed your resources, now will always be an excellent time to begin your search. Now let’s take a look at some of the next steps in more detail.
An in-depth overview of the Toronto real estate market is the foundation of a successful home purchase. The posts below will help you become an informed buyer:
- Our Top Tips for a Streamlined Move in Toronto
- Five Real Estate Myths: Busted!
- How To Find the Right Real Estate Agent
Prepare Your Finances
To buy a house, you will need enough funds to cover your down payment, closing costs, and monthly mortgage payments. This is true whether it’s a seller’s or buyer’s market.
- Getting a mortgage pre-approval in advance will allow you to create a realistic budget. Now you can narrow down your choice of homes. This also locks in the interest rates for the next 90 to 120 days. Best of all, a written pre-approval can make your offer even more compelling to a seller, which can come in handy during competitive situations.
- You will need a down payment of 5% to 20% depending on the final price of the house. If you can come up with 20% or more, you’ll save on mortgage insurance, which means paying less overall for your home. A higher down payment also means lower monthly carrying costs or paying off your loan faster.
- Remember to set aside at least 4% to 5% of the purchase price to cover your closing costs. These include provincial and municipal land transfer taxes, legal fees, and title insurance.
Did you know about all of the programs available to first-time home buyers in Toronto? Learn more in How the Government is Helping First-Time Buyers in Toronto.
Be Firm, Yet Flexible
Buying a house can involve a few twists and turns along the way. A well-thought-out plan will help, but you’ll also need to be flexible at times.
If the market is busy, or a house is particularly desirable, you may find yourself up against other buyers. You can make your offer as compelling as you can while staying within a realistic budget.
However, you’ll also need to be ready to walk away if the bidding gets out of control. It may sting a little if you had your heart set on a certain home, but other opportunities will arise. It’s critical that you don’t exceed a budget that you are comfortable with.
Keep in mind that making a decision today doesn’t mean signing on the dotted line tomorrow. You can take smaller steps to move toward your goals without pressure.
Don’t Sweat the Market
It can be disheartening to compete for homes in a busy market, but being aware of current conditions helps you plan your next steps. Keep in mind that there will be opportunities and challenges depending on what you’re looking for.
For example, detached homes may be selling in the blink of an eye while condo listings barely get a second glance. For first-time buyers, these nuances can be your ticket to homeownership, perhaps even sooner than you thought possible.
Remember that the right house may not be perfect – yet. As long as it’s structurally sound, you can always renovate and remodel it as your budget allows. Sometimes, getting into the market at the best time requires a compromise.
There are other aspects that you will want to hold firm on. Your lot size, location, and proximity to excellent schools and other amenities cannot be changed or renovated away. If some attributes are a high priority, then a skilled real estate agent can help you stand your ground.
Are you getting ready to purchase your first home? Here are some valuable resources just for you:
- 10 Mistakes Buyers Make and How To Avoid Them
- Purchasing Your First Condo: 5 Things To Know
- What Is Fractional Ownership in Toronto?
The Value of Expert Guidance
A knowledgeable real estate agent can give you an idea of what’s currently available in today’s market that fits within your budget. Even now, you can begin making your wish list and comparing it to what you find on Realtor.ca and the MLS®.
Your mission as a home buyer is simple: instead of getting caught up in the news or the market overall, focus on what is in front of you at this very moment. Toronto real estate is always evolving and changing. For buyers who have the means and the motivation, now is an excellent time to achieve one of life’s most celebrated milestones.
With a vision of what you want and a plan in place, you are well on your way to owning a new home in Toronto.
Do you have questions about buying a home or the current market in Toronto? We are here to help! Reach out to us at 416.443.0300 or Erica@EricaReddy.com for more information today.
Meet The Erica Reddy Team
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