Making an Offer on a House? Here's How to Stand Out
Prices are up, single-family homes are in short supply and real estate transactions are fast and quick.
When it comes to Toronto real estate, it's a sellers' market.
To stand out in this crowded field of buyers when making an offer on a house, here are some real estate tips to make sure your offer on a house gets taken.
When making an offer on a house, bring a preapproval letter
A preapproval letter shows you are serious. With a specific dollar amount detailed on an official preapproval letter, a seller knows you have the secured cash to back up your offer.
Yes, these letters take time to get. That's because they are essentially proof of securing a mortgage, a complex process.
Before you start the preapproval process, learn what sort of mortgage payments (including tax and insurance) you can make over the next several years.
Use this handy mortgage calculator to see your monthly payments and discover how closing costs and monthly expenses change your ability to pay.
Choose a real estate agent with proven experience at closing time
Making an offer on a house is something best left in hands of a seasoned real estate pro. We offer a unique "no pressure" approach for North Toronto real estate buyers and sellers.
What's that mean?
For buyers, we practice patience and diligence in securing properties that will meet your family's needs and dreams over the next several years. For first-time buyers, we offer extra help to walk you through appraisal, inspection, escrow and closing.
For sellers, we work to get your house aggressively marketed in a range of sales channels. We listen to your needs and help you vet offers from multiple buyers.
Come to the table with a security deposit
Any set of real estate tips will tell you a security deposit is a traditional show of consideration from buyer to seller.
If you plan on making an offer on a house, providing a larger down payment than your competing buyers makes you stand out in the crowded Toronto real estate market.
Plus, it's a not-so-subtle signal of your financial strength. And it's a way of showing the buyer that this is a sale that is going to close.
Remember, your buyer may have already been burned, one or more times by an offer that went under contract, only to unravel a few weeks later.
Learn the seller's needs —then work with them
Some sellers are in a hurry — they may have just bought a house themselves.
Other sellers may budge on a price if the buyer is willing to overlook a few minor improvements (new windows, wall paint, carpet, etc) that another buyer is trying to stipulate in their contract.
The speedier and more streamlined you can make the seller's next steps, the more likely they are to take your offer.
What should first-time buyers know about making an offer?
The Canadian government provides several incentives to first time buyers. Some first-time buyers programs offer down payment assistance as well as tax credits and rebates for first-time buyers.
These programs help new home buyers come to the table with a larger down payment and outside assurances that you can meet mortgage requirements.
So take advantage of these programs. And take advantage of our wealth of insider knowledge on making an offer on a house in the Toronto-area market.
Why 2017 Will Be Another Hot Year for Toronto Real Estate
2017 Will Be Another Hot Year for Toronto Real Estate
The Toronto real estate market just gets better and better. Here's what's in store for 2017, and why now is the time to jump in.
Keyword(s): toronto real estate
Whether you're looking to sell or buy into the market, 2017 is looking to be another great year for Toronto real estate.
The market has been hot for a number of years now, with 2017 predicted to be the third year in a row with over 100,000 house sales. Plus, the average price of a home is due to grow 10 and 16 percent to $825,000.
So what's driving this massive growth in the Toronto real estate market and sustaining it for so long? Read on to find out.
Massive Demand is Powering the Toronto Real Estate Market
Despite the massive sales predictions, experts are predicting that a lack of houses on the market is driving up prices.
The demand for housing in Toronto is so huge that even with steadily climbing prices and downpayment requirements, people are still competing to get into the market.
Low-Interest Rates and Government Programs are Helping Home Buyers
For years, interest rates have been at rock-bottom, making it way easier for buyers to get into the Toronto real estate market. This has contributed massively to the housing market boom.
Plus, government programs such as the first time home buyer credit have made it a lot more affordable for new buyers to enter the market. Many people who had previously only considered renting are making the jump to purchase their first home.
Vancouver's Market is Slowing Down
The Vancouver housing market, which has been so hot for so long, is slowing down.
Whether this is because of the foreign buyer's tax or for more complicated reasons, the real estate frenzy on the west coast has begun to cool slightly.
As Vancouver's market cools, Toronto's just keeps getting hotter.
Condo Purchasing is Driving Growth
It's no surprise that Toronto's condo market has been growing with incredible speed. The city skyline has been dotted with cranes for years now, with new condos springing up seemingly overnight.
By increasing the population density in different parts of the city, condo sales are helping make up for the lack of supply of housing. They're allowing more and more buyers to get into the market.
Migration and Immigration is Pushing Toronto's Rapid Population Growth
Toronto has long been Canada's biggest city, but in recent years its population has been growing rapidly. Much of this can be attributed to immigration, both from other countries and from other provinces and cities within Canada.
For example, the downturn of Alberta's oil industry has led many to move to Toronto to pursue other work opportunities.
With the Toronto real estate market so hot, 2017 will be a great year if you are looking to sell your home. The high demand and competitive bidding will make sure you get a good price.
If you're looking to buy, things could be trickier, but getting into the market now is a good investment as prices are projected to continue to rise. Make sure you calculate what mortgage you can expect before you start looking.
For sellers and buyers alike, 2017 will be another hot year for Toronto real estate. Make sure you don't miss out!