Have you been outbid on offers and are frustrated with buying a home in Toronto’s record breaking market? Here are 7 ways on how to win a property bidding war in Toronto and the GTA.

1.  Have a realistic expectation.  

The list price may sound enticing at $599,000 when you’ve qualified for a $625,000 mortgage…but will the home really sell for that? If comparable homes are selling for much more, you’ll know that the Seller and his agent priced low in order to generate interest from multiple buyers and drive up the price. Frustrating? Yes, it can be. In some cases the list price doesn’t mean anything. What is the home really worth as compared to other similar recent sales in the neighbourhood? If you know that they’re selling for considerably more than what the price is listed at and it’s beyond your means, move on to something else.

2.  Give yourself a healthy buffer amount to move up in price.  

The list price doesn’t mean anything (well, sometimes). What is the value to YOU? This ties into having a realistic expectation about the property. At the end of the day the value is what a Buyer is willing to pay. There will always be someone else who might feel it’s valued at more (or less). Give it your best, but do leave a bit of room to move up in price. Some Sellers will decide on the offer they’ll work with based on the first shot so you don’t want to lose an opportunity however, if there are other similar offers to yours the Seller might provide for a second chance – so having that buffer could mean getting the place in the end.

3.  Fulfill conditional obligations before offering on the property.  

Let’s face it, in Toronto’s heated real estate market if you have any conditions in the offer you are dead in the water. A Seller won’t take a chance with the sale falling through if for some reason the Buyer doesn’t receive financing approval, or wants to walk away because of findings in a home inspection report. This means possibly turning down a more attractive offer price for a FIRM sale. Once a firm offer has been accepted the parties are bound to that agreement and may not “walk away” for any reason. Btw, a smart Seller and his Realtor will have already had a home inspection completed prior to listing and the pre-listing home inspection report available for review. Ask to see it and if you feel that it’s not comprehensive or detailed enough there’s nothing stopping you from having your own home inspector view the property. Sure it’s an out of pocket expense before even knowing if you’ve got the home, but isn’t that $400-500 bucks worth the peace of mind?

4.  Think outside the box with your offer price.  

Almost everyone will round their numbers in an offer (for example $650,000 on a $600,000 list price) and or move up in increments of $500-$5000. This means that there’s a greater chance of someone else having the same offer amount as you so you will have to subsequently increase your offer in order to differentiate yourself. Why not do so right off the bat? Try a number that’s not predictable. Some cultures find certain numbers lucky so use this to your advantage if the Seller could relate. Also keep in mind that some find certain numbers unlucky, therefore don’t use those unlucky numbers in abundance.

5.  Have your deposit funds ready with the offer.  

What this tells the Seller is that you mean business! Having the deposit cheque together with the offer at presentation means that you’ve fulfilled this requirement in advance, whereas it’s typically provided within 24 business hours of an accepted offer. Leave those personal cheques at home. The deposit should be a money order or a certified cheque and in an amount that makes sense to the list price. Some would say 4-5% of an offer price is a good deposit, but this will vary based on purchase price and trends in that city. The larger the deposit the more attractive your offer will be to the Seller. Be sure to transfer funds from accounts in advance so it’s easy for you to access. If you bank with PC, for example you may need an extra day turnaround.   Always have deposit funds ready and accessible when you’re serious about buying a home.

6.  Add a personal touch.  

Most Sellers will want to know that their house is going to be lovingly enjoyed by the new owner for years to come. What is in in particular that you love about the property and the deciding factor for your purchase? Are you starting a family and find that this would be a perfect home to raise your children in? Does the home have unique features that you’d like to preserve? If the Seller can relate to you as the Buyer, you’ve already touched upon something that resonates with them which could help in you landing the purchase. It doesn’t hurt to write a letter or advise your Realtor to share some information about you to the Seller in order for them to understand why you’re buying the house.

7.  Get a great Realtor and let them help you.  

They do this every day, and can help you with the very best strategy. Ask a lot of questions and feel comfortable knowing that you have someone on your side who’s been through (and won) numerous bidding wars for other Buyers, and on the flip-side have also represented Sellers in multiple offers. This way you have the expertise from both ends.

As daunting as it may seem for a Buyer, the home buying process can be an enjoyable and exciting one. Arm yourself with this knowledge and the help from an experienced agent.

Get in touch with us if you’re ready to take the leap into home ownership. We promise to help you navigate the market  and get you into a new home in no time!

– Tanya

Join us at the first ever Streetsville Pumpkin Parade! Tuesday, November 1st from 6-8:30pm.

Wondering what to do with your pumpkins and jack o’ lantern’s now that Halloween has ended? If you’re in North or West Mississauga bring them to the Streetsville Pumpkin Parade! The Streetsville BIA invites local residents and businesses to bring jack o’lanterns to the Streetsville Village Square on November 1st at 6pm. Pumpkins will be lit up at 7pm for a beautiful display to see! Judges will vote for the most creative pumpkin and prizes awarded. Tea lights and lighters will be provided. Bring the entire family, grab a pumpkin spiced latte and enjoy the fun!

Don’t worry about bringing the pumpkins back home, the Region of Peel will collect them all for compost. Looking forward to seeing you there!

It’s no surprise that our Toronto housing market results just keep getting better as the year progresses. This one might go down in the record books as the best one yet.

As of October 2014:

Real estate sales up 10.9%.

The Toronto Real Estate Board reported 8051 transactions in September 2014, a 10.9% increase compared to September 2013. Despite a persistent shortage of listings in some market segments, we have experienced strong growth in sales suggesting buyers remain upbeat about purchasing a home. The majority of home buyers purchase a home using a mortgage. The share of the average household’s income dedicated to their mortgage payment remains affordable, which is why buyer interest has remained solid,” said Toronto Real Estate Board President, Paul Etherington.

Average selling price for homes in the GTA up $41,221 in one year.

The average selling price for September transactions was $573,676, up 7.7% from 2013. Average year-over-year price growth was strongest in the City of Toronto, both for low-rise home types like detached and semidetached houses and for condominium apartments. The average selling price year-to date was $563,813 – up 8.5%  compared to the first nine months of 2013. A Toronto detached home sold for an average of $951,792 in September 2014

Real estate sales growth expected to hit new sales record.

If the current pace of sales growth remains and is coupled with the multitude of willing buyers and short supply of listings, the Toronto housing market will translate into very strong annual rates of price growth in the fourth quarter. “We could be flirting with a new record for residential sales reported by TREB Members this year.” said Jason Mercer, TREB’s Director of Market Analysis.

What does this mean to you as a Seller?

The fall market is the second best time of year to sell. Why wait for spring when plenty other Sellers will be listing as well? It’s an opportune time to take advantage of short supply and less competition. As we’ve seen there are plenty of Buyers that are ready, with mortgage pre-approvals obtained and ready to move forward on the right purchase.

Buyers – why wait? Prices only keep going up and show no signs of slowing down.

The heading is not meant to scare you! Take advantage of the cooler months when you’ll be vying for homes against fewer competing Buyers. Nothing better to celebrate the upcoming year with a new home to ring in 2015! It makes sense if you’re ready, to take advantage during the current market as there’s no signs of slowing down. Why potentially spend tens of thousands more on a home if you’re trigger shy to make a move, NOW. Think about the awesome furniture, art and accessories you could deck your home out in – or the 8 person hot tub which would be perfect in your new backyard.

Contact us.

If you’re looking to Buy or Sell, drop us a line and we’ll get you going on your best foot forward. info@tcteam.ca

2nd Quarter results were recently released with overall sales up 10.4% over the same time last year, squashing speculation that the condo market was on a continual decline. It’s no surprise that we’ve seen an increase in condo sales based on how single family homes have skyrocketed in price. Condos remain a more affordable option for small families and those looking to cash in on their homes and downsize to a more effortless lifestyle.

Stats-wise, the average selling price for condos in Q2 was up by 5.5% year-over-year to $367,010. In the City of Toronto, which accounted for 71% of total sales, the average selling price was $392,739, representing an increase of 5.3%. In Mississauga, condo sales were up 4.8% with an average price of $279,902 representing an increase of 5.1% year-over-year.

Have you noticed a surge in construction cranes throughout the city? Many new condo projects have popped up contributed by a healthy increase in the pre-construction condo market, with a total of 5,992 new condominium apartments sold in Toronto during Q2, which was the third highest volume of activity for a second quarter behind 2011 and 2007 and a 56% year-over-year increase from a post-recession low in 2013. The 12-month total for new condo sales reached 18,463 — directly in line with the 10-year annual average. Price growth remained consistent coming in at 2.8% annually to an average index price level of $554 per square foot in Q2. Pricing for unsold units continued to hold steady, growing by less than one percent to an average of $570 psf.

So what does this mean for new condos that are nearing completion? We should still see enough demand to sustain the price growth over inflation over the second half of the year. This coupled with how hot the Toronto condo rental market is reinforces the fact that buying condos are a sound investment after all.

I can’t believe we’re already half-way through 2014. Is it just me or has the year flown by? This spring/summer season has been busy in more ways than one. My husband Steve joined me in the business at the start of a year, forming the Tanya Crepulja Team. We celebrated our first year wedding anniversary in May, and also had another celebration on that very same day – the birth of our son. Amidst all this it’s been business as usual and as you can imagine it’s been busy, in real estate and at home with our ‘lil guy 😉 This has been one of my best years in real estate yet, having met and worked with numerous amazing buyers and sellers….all while pregnant or after just having the baby, dispelling the myth that you can’t work with a newborn (hey, real estate is my “other” baby!)

What else is exciting is the launch of our new website, which is where you’re reading this. It’s been a labour of love and in the works for the past few months with design from the good folks at Artifakt Digital.  This is the first blog post of the new site, so bear with me as I get the hang of blog writing. I’m sure Steve will have his contributions for the blog going forward, so be sure to check in often – and browse the site while here. We welcome your feedback on the site, and would be happy to help you with any home buying or selling questions you may have. Until then, make the most of what’s left of summer!