If you’re an active home buyer you’ve probably noticed that house prices have skyrocketed, especially this first quarter, resulting in many buyers having had to give up their dream of buying a single family home. Some have opted for a condominium, a multiple family or have moved outside of their preferred area and even to the suburbs to make it affordable to own.
When a market is moving as quickly as the Toronto real estate market with house prices going up as rapidly, buyers have to be more diligent with their house search and become more sensitive to the passing of time because each month that goes by houses will cost tens of thousands of dollars more.
Here’s a list of a few short sighted mistakes buyers make that could lessen your chances of buying the right house as quickly as possible in this fast rising market.
2. Buyers who insist on using a friend or relative who is a part time agent or who works outside of the area you are looking to buy in.
- Through my experience I have learned that sometimes, friends or relatives can be over protective and allow you to miss opportunities.
- Furthermore, I have found that, some don’t take control of the situation because they don’t want to hurt your feelings for fear that it may affect your relationship.
- Also, without a doubt, ANY agent who works part time or is unfamiliar with the area you are looking in will not be current, can not act in a timely way and will not help you find the right house as quickly as possible in this fast paced market.
In an upward rising market this strategy will only prolong your purchase costing you tens of thousands of dollars.
3. Buyers not willing to make compromises. You probably have a lot of items on your wish list but, unless you have unlimited funds, you may have to compromise on some. These compromises might include accepting outdated decor, foregoing that extra bathroom or even making repairs to the home yourself. Of course, there’s always the option of continuing to rent while accumulating enough to be able to afford everything on your list or you can put off buying that bigger house. However bear in mind that if you decide to hold off, and the market continues to go up, you may find yourself behind the proverbial eight ball because you will have to pay that much more for your house down the road. Being too picky can end up costing you a great deal of money.
4. Buyers who don’t see beyond the staging. Sellers can use “tricks of the trade” to enhance the look of a house in order to generate higher offers than they otherwise would get. Staging, minor upgrades or cosmetic fixes will pretty up a house and make it look great. A cheap investment of $3,000 by the seller may end up costing you an extra $30,000 because the house shows so well. But remember that a messy looking house will probably save you money on offer date because it may have fewer interested buyers. After all when you take possession of any house it will be bare and vacant. A better strategy for buyers on a budget is to look for a house you can add value to by finishing a basement, renovating a kitchen or bathroom or as simple as tearing down the hideous wallpaper and painting.
5. Buyers who insist on putting in conditions or making a low offer when there are other offers on the table. When there are many buyers interested in the same house, it will likely sell for a price that is much higher than the list price. The buyer who is prepared to pay will up their ante every time their agent tells them there is another registered offer on the property. So why would you instruct your agent to present an offer on your behalf when the chance of you procuring this house is very slim, at best? The result of this is higher bench mark prices in an area you wish to buy in and it delays YOUR purchase in a fast rising market setting you up to pay more tomorrow.
If you’re a frustrated buyer who can relate and you have not signed a Buyer Agency Agreement with a broker, connect with us. We’ll help you see the possibilities, the opportunities, find you the right house, at the lowest possible price as soon as possible because every month you are missing out on buying a house at the current rate of increase is costing you tens of thousands of dollars.