This time of year is notorious for the lack of quality houses and condos for sale on the market. Problem is, this trend may continue a bit longer than we'd all like. Here are six tips that will help you out when looking for a new home.
There just aren’t enough high-quality houses and condos available for sale in Toronto this winter, and the shortage is likely to continue into early spring. Naturally, buyers are frustrated with the entire process, from the viewings, to making an offer and, finally, to the bidding wars that often result. But fear not: Here are a few suggestions to open up more options, alleviate stress and get you into a new home.
1. Re-visit your “must-have” list.
The first thing I tell my buyers is to make a list of their must-have features. Then I ask them to divide that list into needs and wants. You’re never going to get everything you’re looking for, so if you’re having trouble with your search, you’re likely holding out for things that you won’t get in your price range. Do you really need a third bathroom? Or do you just want it? Can you finish a basement yourself? Do you know that a private driveway is a luxury and maybe a mutual driveway is an option? Go back to the drawing board.
2. Compromise on location.
That beautiful, renovated, semi-detached on a leafy Bloor West Village street that costs $650,000 might only cost $570,000 if it’s on a busy thoroughfare like Jane or Runnymede. Many buyers will ignore the property, so it creates an opportunity for you to get the house you’ve always wanted for less than what you would have paid. Maybe the street noise is worth the trade-off for you.
3. Expand your search radius.
If you can’t afford Riverdale, go south to Leslieville. If you can’t afford Leslieville, go east to the Upper Beaches. Or ask your friends and colleagues (and your realtor) for suggestions of other areas of the city you should consider. I’ve had buyers say, “We’re 100 per cent set on Roncesvalles,” only for me to show them a gorgeous Victorian near Trinity Bellwoods Park and have them completely change gears. There are dozens of great pockets and neighbourhoods that many people have never heard of. It’s time to get out of your comfort zone.
4. Avoid the A+ houses.
Despite the logic that a home is worth what somebody is willing to pay for it, I believe something that completely contradicts this: A+ houses always sell for more than they’re worth. When you go to view a home that has 20 other buyers and their agents milling about inside and nobody knows who has the key to the front door—that house is going to sell for far more than it’s worth. I don’t encourage my clients to get involved in these properties unless they tell me they’re willing to knowingly pay through the nose for it.
5. Start at a lower price point.
Once you’ve seen four houses sell for 110 per cent of the asking price, you start to realize how the game is played. Properties are often under-listed, and with the short supply and high demand, they continue to sell in a different price range than that of their original list price. If you know you can only afford $600,000, then don’t look at homes priced at $599,000 with a set offer date. You’re likely setting yourself up for disappointment.
6. Be realistic.
Buyers who have had lofty expectations coming into the property search are often the ones who leave most frustrated. You’re not the only person interested in that detached house in the prime Swansea area that’s only one block from Bloor. There are a lot of active buyers out there, and not enough active listings. We’ve been in a seller’s market for a long time, and the buying process won’t be without a couple of sleepless nights and a little disappointment.
Perhaps most troublesome is that we can’t predict when the number of available houses and condos on the market will increase to satisfactory levels. Some buyers wait it out, figuring that one day there’ll be more options, but that’s not really an action plan; it’s just hoping and wishing. The key is to always be active, and strike when the opportunity presents itself.
David Fleming is a Realtor with Bosley Real Estate in Toronto, and author of the best known real estate website in the city: www.torontorealtyblog.com. A constant thorn in the side of condominium developers, David’s sarcastic, opinionated, outlandish thoughts can be read daily, although for some people, that’s far too often.
