Even though many buyers have been put out of the race by the recent rate hikes, we are still in the seller’s market. This is because properties are limited in many big cities of the world. As the population grows, demand for properties increases significantly as well. New condos in Pickering and other parts of Ontario keep getting built up every year.
So, what can you do to buy the best property in this seller’s market? There are many pro tips that can help you get the best property at the best rate. As sellers are finding new ways to sell their properties faster and at higher prices, buyers should do the opposite. So, here are a few tips that will help buy the best property in the current market situation:
Do Your Research Right
You always want to do your homework right. Relying on input completely is never a good idea. In today’s seller market, the asking price might not reflect what the sellers are actually looking for. Many sellers are now starting very low with a strategy to attract bidding wars.
Make sure to check the property’s actual value. Look at very recent sales in the area, street, or the building. Do your research and find out what you should pay for the property.
Look at sold property prices at reputable platforms like condos.ca, property.ca, or mrloft.ca. Some platforms will also provide toggles for “Price History” for specific buildings. Do your research and find out the upper limit for any property.
Get Pre-Approved from Your Bank
Approvals from the bank can not only take a lot of time but many times be not in the way you want. So, if you are going after a property worth $900,000, your bank will need to lend you this money. However, with today’s trends, you will never know what the bank offers you.
So, even if you get approved for $800,000 only when you know what to look for, all that time can be saved. Or, of course, you can then look for other options to arrange the money.
Banks are offering pre-approval solutions to clients. Get yourself preapproved to know exactly what property to look for. Also, this will help make the transaction faster without initiating bidding wars.
Lead with Your Best Offer
Oftentimes, buyers will have the urge to make an offer below what they can afford. However, usually, that doesn’t get you anywhere at all. In cases where there will be multiple offers, the lower offer you dish out can get rejected. If you do this, the seller might not even consider you.
So, it is always a better option to lead with your best offer. That extra $20K can make a big difference in many sales. So, be prepared to make your best offer. Look at it this way, the offer you put out can be the only one you make. Offer the maximum you can pay to have a better chance of winning the bid.
Use a Bully Offer to Lower the Price
When properties have an offer date, a bully offer tactic can be pretty useful. Not entirely winning any ethical prizes, the bully offer can just lower the price somewhat. Also, this is useful when you see properties listed at very attractive prices to attract more bidding wars.
Circumvent this process by making an offer before the date. Make sure the offer is aggressive enough to make the seller think they will not get better deals in bidding wars.
A good agent or property consultant can help figure out a bully offer best. It can be the right move when trying to buy any property.
Hire an Experienced Real Estate Agent
Whether looking for new townhomes in Whitby or a move-in condo in any other part of the GTA, the right real estate agent can help get the best property at the best price. Remember that your cousin or family member who might have taken up real estate as a career just recently, will not be the best option.
You need experience in the industry to become a good real estate agent. Also, experience brings with it the right types of contacts. So, get services from the best agent available near you. This will help close the deal at the best price.
Rethink Your Buying Preferences
When you are getting outbid a lot, there might be something you need to change. Either the properties you are bidding on are out of your range or you are not offering the right amount. Of course, everyone has a budget when looking for a new property.
It’s all about knowing your budget and bidding on the right property. Also, this is where getting pre-approved will help quite a lot. You will be certain about the kind of financing you will get.
Keep Your Downpayment at Hand
Keeping your downpayment liquid is a great tactic. High-pressure and time-sensitive negotiations happen so fast that there is no time for delays. So, keep the downpayment on you in cash.
If you do this, you will be able to present the downpayment right when the deal gets made. There will be no time for bidding wars to happen at all.
Explore Personal Connections with the Seller
Another great way to tilt the balance of the deal towards you is to explore personal connections with the seller. However, this is highly subjective. Yet, if you can find somebody you know who knows the seller, they can introduce you to them in good faith.
Also, this can eliminate the need to hire an agent as well. If you are bidding on a property in your building or area, make sure to let the seller know. Surprise them with a small gift to win the bid.
Bottom Line
Buying the right property in a big city like Toronto or any other is a big decision. Also, this decision is highly personal as well. You will be spending a lot of time in your new property. Buy the right one by following all these abovementioned tips. We are currently in a seller’s market and will be in it for quite a while. Use intelligent tactics to win the bid at the right price and make the property yours quickly.
