BUYERS: HITTING THE SNOOZE BUTTON TOO OFTEN?

Whether you are an active first-time home buyer or a seasoned investor, you've probably noticed that house prices have skyrocketed, especially in the last couple of weeks as we push into the fall market!

It seems like many first-time home buyers have had to give up their dream of buying a single family home and are being pushed into the condo market. Many are now focusing on multiple family homes or have moved outside of their preferred area and even to the suburbs to make it affordable to own, but for those buyers for whom living downtown is the only option, a good sized condo seems to be the next resolution.

My recently sold listing (a mid-sized condo-loft in King West Village) was a good indicator. My seller and I were amazed with the level of traction and showings we had not to mention how busy we were on offer night. When a market is moving as quickly as the Toronto real estate market with house prices going up as rapidly, buyers have to be more diligent with their house search and become more sensitive to the passing of time because each month that goes by will see houses costing tens of thousands of dollars more.

Here's a list of a few short-sighted mistakes some buyers make that could lessen your chances of buying in this fast-rising market:

BUYERS WAITING FOR THE MARKET TO CRASH: 
Two words:  SUPPLY & DEMAND.  It's the simplest rule of market economics and it applies to Toronto's real estate market. The population keeps growing, and people have to live somewhere. There's little room to build more single-family houses to increase the supply. The demand from families who want to live in the city will remain high.  The number of new listings on the market continues to be outstripped by the number of buyers.

As for Toronto's condo market, it's a myth that it's oversupplied: the inventory of unsold condos is shrinking, and with first-time buyers nearly priced-out of the house market, the demand for condos will continue to increase. Usually when the market's slowing down and prices fall, you can see signs of that well ahead of time. When you look at the momentum in Toronto's market, it's not going in that direction. I just don’t see the market falling at all this fall and in 2017 for that matter.

BUYERS WHO WANT TO BUY ONLY THROUGH A LISTING AGENT:
These are the deal seekers! The buyers are looking for a selling agent that will either give them a commission kickback or priority over other buyers. In this market, that won’t happen! In the end, the listing agent is working for the SELLER, not the buyer. You may eventually find an agent who will do this for you but this strategy will certainly prolong the search and could potentially get you in trouble.

A critical downside is that you don't have an agent focused on finding a property for YOU. The onus is on YOU to find these properties and make contact with the listing agent. In this market, by the time you notice the property for sale and contact the listing agent, it could potentially have sold. If this happens for months, you will eventually be paying much more for your house or condo. This is called: chasing the market.

BUYERS WHO INSIST ON USING A FRIEND OR RELATIVE:
Through all my years of experience I have learned that sometimes, friends or relatives can be over-protective and allow you to miss opportunities.

Furthermore, I have found that some don't take control of the situation because they don't want to hurt your feelings for fear that it may affect your relationship.

BUYERS WHO WORK PART-TIME OR OUTSIDE THE AREA:
Without a doubt, ANY agent who works part-time or is unfamiliar with the area you are looking in will not be current, cannot act in a timely way and will not help you find the right house as quickly as possible in this fast-paced market. In an upward rising market, this strategy will only prolong your purchase costing you much more in the end.

BUYERS WHO ARE TOO PICKY:
Many buyers probably have a lot of items on their wish list but, unless they have unlimited funds, they may have to compromise on some. These compromises might include accepting outdated decor, foregoing that extra bathroom or even making repairs to the home yourself. Of course, there’s always the option of continuing to rent while accumulating enough to be able to afford everything on your list or you can put off buying that bigger house. However bear in mind that if you decide to hold off and the market continues to go up, you may find yourself behind the proverbial eight ball because you will have to pay that much more for your house or condo down the road. Being too picky can end up costing you a great deal of money.

BUYERS WHO LOW BALL OR HAVE TOO MANY CONDITIONS:
If you’re not the only offer on the table and find yourself in a multiple offer situation (bidding war), keep your offer clean. Buyers who insist on putting in conditions or making a low offer when there are other offers on the table just won’t have a chance. When there are many buyers interested in the same house, it will likely sell for a price that is much higher than the list price and without conditions. The buyer who is prepared to pay will up their ante every time their agent tells them there is another registered offer on the property so why would you instruct your agent to present an offer on your behalf when the chance of you procuring this house is very slim, at best? The result of this is higher bench mark prices in an area you wish to buy in and it delays YOUR purchase in a fast-rising market, setting you up to pay more tomorrow.

If you're a frustrated buyer who can relate, connect with me. I’ll help you go through all your options while avoiding these pitfalls along the way. STOP hitting the snooze button because the longer you take to buy, the more it will cost you in the end.

Looking to buy, sell or refinance? Know your options. I can help! Direct line: 416-219-6662