Thinking about starting your journey in the real estate market? That is exciting, but it can also be a little scary. But becoming a homeowner is possible with solid strategies.
We selected a few tips that may help you in this next step:
1. Prepare yourself for encountering strong competition when it comes to desirable properties.
Due to low inventory levels, the options available for selection are limited. The number of buyers in the market has been relatively low until recently. However, as the spring season progresses, an increasing number of buyers are initiating their property search, leading to heightened competition.
2. Thoroughly research and gather information before making any decisions.
Sellers are employing various strategies, such as offering low prices and setting offer dates, but these tactics are not consistently used in all areas. The asking price alone may not accurately reflect the property’s value, making it challenging to find affordable options. It is common to come across homes listed at market value alongside properties priced lower to attract multiple offers. Determining the appropriate offer to make or even deciding whether to make an offer at all can be difficult.
3. Every neighbourhood is its own market.
You can’t generalize about the GTA – it’s way too big and diverse. In one area, offer dates may be the norm. In another, sellers may be listing at market rate.
4. If you love something, don’t wait.
Although there was a brief period when buyers had the luxury of taking their time and making conditional offers, the current market dynamics have changed. While certain areas of the city may still allow for some flexibility, highly desirable properties are being swiftly claimed. Therefore, if you come across a property that truly resonates with you, act promptly and submit an offer.
5. Avoid focusing on the attractive and eye-catching listings.
If you wish to avoid being outbid by buyers with greater financial resources, consider exploring properties that have not been effectively presented or marketed. While everyone is naturally drawn to homes with stunning decor and appealing lighting, staged properties often fetch higher prices compared to those that have not been aesthetically enhanced.
6. Consider exploring properties that have been on the market for an extended period.
After the initial 14 days, buyers tend to shift their focus to newly listed properties. However, there are various reasons why homes may not sell immediately. It could be a matter of incorrect pricing, inadequate presentation or marketing efforts, or the need for some renovations. Sellers whose listings have not garnered significant attention are often more open to negotiation.
7. Buy whatever you can afford, wherever you can afford it.
The limited inventory in the market has resulted in higher prices. So, how can an individual who is not financially affluent, particularly first-time buyers, actually afford to buy a property? The key is to start small.
Instead of searching for your forever home right from the start, consider buying a one-bedroom property in Hamilton or Dundas if you can gather enough funds. You don’t necessarily have to live there, you can rent it out to someone else and have their rental payments cover the mortgage, even if you continue living in a rental property yourself. By doing so, you will start building equity while waiting for the property’s value to appreciate.
If you are interested in purchasing a home, reach out to us today for additional tips and guidance.