Buying a home in the Greater Toronto Area is becoming more and more challenging as inventory is at an all time low with prices increasing at an unprecedented rate.
It is not unusual for a property to be shown to more than six prospective buyers within hours of being listed. What’s more, sellers are holding off offers to increase the likelihood of multiple offers. Added to this, the common practice of bully offers – buyers (and their Agent) registering an offer before the agreed upon date, at a price higher than listed price, with a very short irrevocable date.
Here is what you can do to increase you chances of obtaining the home of our dreams:
- Get a Mortgage Pre-approval – You will be asked to fill out a mortgage application. Your lender will do a thorough analysis of your credit report and look at your ability to purchase a property. It’s important to note, however that while many buyers are opting to go in firm when making an offer, having a pre-approval does not guarantee a full approval. It is strongly suggested that you speak with your lender to discuss the risks of buying a home without a full approval.
- Do a professional inspection – It is highly recommended that you have a home inspection done on the property before going in firm on an offer. Note, most sellers will allow buyers to do home inspection prior to the presentation date. Alarm bells should go off if they deny your request for a home inspection.
- Stay in touch with your agent – Keep in contact with your agent and clearly express your needs. Ask him/her to set you up to receive listing as soon as they become available. Be ready to view the house on a short notice – if it is a great home, it will go quickly.
- Be realistic – there is not such thing as a “perfect” home. Determine a head of time what you can live without.
- Be prepared to make a decision – Don’t hum and haw when you see a home you love; there will probably be five or more prospective buyers that also love the home and are ready to make an offer.
- Bid competitively: You may not want to start out offering the highest price you can afford. Similarly, it is suggested that you not go in too low as you may offend the seller.
- Keep clauses to a minimum: An offer with fewer clauses is more appealing to the seller.In conclusion, if now is the time to purchase a home, don’t be timid. Your chances of being a winner in a bidding war will be much greater if you are prepared.
- Bring the deposit with you – From the view of the seller and their Realtor®, the buyer appears more serious when they come to the offer presentation with the deposit in the form of a bank draft.
- Stay calm – If your offer is not accepted don’t despair, there are homes coming on the market every day.
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