Finding a Real Estate Bargain in a Changing Market in Toronto
Starting in the late 1990’s there have been few good real estate buys in most real estate areas. Inventories of homes for sale (listings) have been at record low numbers. And there have been large numbers of buyers willing to pay “almost” anything for their dream home.
Now in mid 2008 the picture is changing. Buyers have plenty of choice. Listing inventories are up and the number of sales has dipped by as much as 70 percent in some major real estate markets.
Bidding wars are fast becoming a thing of the past and buyers can feel confident they are not paying too much for their home.
However, having ample supply of homes to choose from does not mean that sellers are prepared to expect substantially lower prices. Having spent over 25 years in residential real estate sales, I have observed that most sellers do not have to sell. The key to getting a bargain is in finding a seller who has to sell.
Regardless of what is happening in the market, there are always personal situations that require that some home owners do have to sell or need to trade to a more affordable home.
So, how do you as a buyer go about spotting one of these real estate bargains?
- First, you need to be on the look-out on a full time basis. Part-time efforts will not get this job done. Remember, you are not the only buyer ready to act as soon as a great buy becomes available.
- By doing this you are educating yourself so that you are able to recognize a bargain almost instantly without having to do “extensive research”. By the time you are done researching the value of such a bargain, you may find that there are several offers from buyers on the table ready to be presented to the seller.
- Work closely with an experienced real estate agent. Your brother-in-law, who recently got his real estate license, does not really know a lot more than you do and is not able to spot the “hot buys” quickly enough.
If you simply do not have the time to keep track of the real estate market on your own, then you need to work with a good agent can. This agent is motivated to work with you because you are a motivated buyer. Remember, you do not have to pay the agent’s fees as she will be compensated by the seller.
When the real estate market begins to slow down, as it doing in Toronto, there are better chances of finding a great buy. In order to succeed you need to be fully informed and be able to quickly recognize good value. Last but not least, you must be able to act swiftly and make a fast decision to buy right away.
Happy house hunting!
[...] Original post by Prime Toronto Neighbourhoods [...]
Rosalin, Even though there are so many more properties on the market, I took a buyer to see a home that had been on for quite a while, and the seller was offering 3% to try to snag a sale, but we ended up with multiple offers. Fortunately my buyer was able to get the house at a still fair price. I like your new Tomato blogsite, great articles!
Nicely written, well presented contribution.
I hope your clients appreciate the extra care you take.
Continued success!
David Pylyp
I read the three part guide you wrote and I couldn`t resist reading some more of your posts. You`re just a wonderful, easy to read, uncomplicated writer. I`m a realtor in Toronto and the only thing I can say is that I agree in all points. Even to the three part guide. It`s a pitty that many buyers completely ignore facts like those you mentioned when looking for a bargain and again those in the guide. I just have to keep reffering to it, because it`s just so good. If every bargain seeker did what you mentioned, we`d soon be out of bargains
.
All in all, a good post, a great blog, keep it up.
Julie