Should You Pay More Than the Asking Price For a Home?
In many Central Toronto neighbourhoods – even in this market – we continue to see homes sell at or above the asking price. “But,” you may be thinking, “Does it make sense to pay more than the asking price?”
The answer is an emphatic yes because like a Chanel suit, some things will always be in fashion – and hold their value. A good neighbourhood is one of those things. Following are three reasons to pay at or above the asking price for a home in central Toronto, with full knowledge that you’ve made a sound financial decision.
Central Toronto Neighbourhoods: The Best Ones Cost
No matter what the real estate market at large is doing, the best neighbourhoods in central Toronto tend to hold their value. This can be attributed to several factors. Following are two of the most important.
The Best Schools: One of the determining factors of home prices is school districts. Homeowners in the best neighbourhoods tend to pay more in property taxes, which in part fund school districts, to ensure that their schools are the best.
When homebuyers — in particular those with children — are looking to buy, they will pay top dollar to ensure that their children have access to the best education.
Active Homeowners: The best central Toronto neighbourhoods also tend to have an active populace who pay attention to variables like crime statistics, property upkeep and pollution (e.g., clean, safe streets and parks). This is why these neighbourhoods tend to stay pristine – and desired places to live.
Central Toronto Neighbourhoods: Low Inventory, Bidding Wars & Pricing to Sell
Mainly due to the above reasons, housing inventory in the best Toronto neighbourhoods tends to run low. It’s a simple case of demand outpacing supply. Therefore, when a home that is appropriately priced comes on the market in one of these neighbourhoods, they more often than not sell quickly. Bidding wars are not uncommon, which can quickly drive the cost past the asking price.
Furthermore, homeowners in prime Toronto neighbourhoods know the value of their residences – and what serious prospective buyers are willing to pay. Hence, they price them appropriately and stage them to sell.
Central Toronto Neighbourhoods: Taking the Long View
If you’ve heard it once, you’ve heard it a thousand times, i.e., real estate is all about location, location, location. When buying a home in Toronto (or any place else), you should always buy with this long-term view in mind. You can change the cosmetics of a house, but you can’t change its location, its school district, or the safety and cleanliness of its streets.
If you have a good idea of the type of house you want and the Toronto neighbourhood you want to live in, you may have no option but to get in line with others seeking the same – even engaging in a few bidding wars and possibly paying more than the asking price.
When you consider however that your home is probably the largest investment you will ever make, when you buy in a prime central Toronto neighbourhood that retains its value, as Martha Stewart would say, “That is a good thing.”
Want to buy a home in a prime Toronto neighbourhood? Visit PrimeTorontoNeighbourhoods.com to find your dream home.
You can also quickly find out what your current home is worth, and get valuable information on how to attract the highest number of buyers.