Toronto real estate prices are near an historic high, while rates linger near historic lows. Can this last? Of course not. We all know that. But some people can’t wait. If you’re one, or have one living in the basement, pay attention:
First, get an agent to represent your interests, help you search out candidate properties, collect comparables and ultimately make an offer. A good one familiar with the ’hood will be able to flag deals and reject the greedy, unrealistic vendors as well as provide solid advice on the quality and trending of the street, plus the biggest factor — future resale value. Your agent is paid for by the seller, so why not? Do not go into a first-time buying situation naked.
But, don’t sign a buyer representation agreement. If the agent you chose pushes one, get a new guy. The agreement opens you up to too many future issues, which have been detailed here at least twice in the past and are too boring to repeat.
Don’t even click on realtor.ca’s sexy new beta site without getting a mortgage pre-approval first.
No bidding wars. None. Ever. Learn to just walk away if there are multiple bids, because nobody ever wins a bidding war.
Search for dogs. Stale listings. Stuff that’s been on MLS for a few months (your agent will help you spot properties that have been relisted recently so they don’t woof as much).
Don’t fall for an auction ploy. That’s when you spot a new listing in an area you want at an unbelievable price, then text your agent to immediately start working on a showing and an offer. Of course, the seller’s agent has priced it $50,000 or a hundred grand under recent comps on the street just to sucker in rubes like you. You know it’s an attempted auction when a day and time are specified for presenting offers. Don’t play.
Wait for snow. Sales volumes peak twice a year — spring and fall — then go into a funk before Christmas and stay that way throughout January. There’s less competition among buyers.
Make your offer clean. No financing condition, for example. You should even try to do the home inspection before you make an offer, as it will show commitment on your part and allow you to hammer down on price. If the inspection reveals defects, you have all the cards. Use them.
Help the seller say yes. Be flexible on closing date to accommodate him. Allow all the exclusions he wants, for example.
When your offer’s presented, make the sign-back period as short as possible. That day, for sure. That afternoon or evening, better. Four hours should be sufficient.
You scored a signed offer? Hope you have a good lawyer — a real estate lawyer, not the kind you yell at during a divorce — and that you slipped in a small clause giving you 24 hours for solicitor approval. Do what she says.
When it’s done, gaze deep and long into your spouse’s dreamy, thankful eyes. It will ease the pain.
Post City Magazines’ real estate columnist, Garth Turner, is an author, investment advisor and former MP.
