Feeling The Heat? Check Out Lauren’s Cool Tips To Survive Toronto’s Hot Real Estate Market

August 28th, 2009 Categories: News Wire, Toronto Bidding Wars

Hello there! This has certainly been quite the summer, weather and real estate-wise. And unless you’ve been off the Toronto real estate grid the past couple of months, you know it’s been one hot summer for wheeling and dealing.

There’s a very simple reason for this: Supply And Demand. After a very, VERY slow start to the year buyers found their confidence (apparently all at the exact same moment) and roared off the sidelines to buy out the joint.

So how does one successfully navigate in this type of market (read: very little inventory + many, many buyers; also known as a seller’s market)? Any tips or suggestions for Toronto buyers? Do ecstatic Toronto sellers even need to take notes? How can you get cool?

Let’s find out!

A Few Tips For Toronto Sellers

This has been a great seller’s market. If you see yourself selling your Toronto property in the not-too-distant future, for whatever reason, serious consideration should be given to getting it on the market NOW.
It’s not always about the price. You might not get multiple offers or over asking, but go to market with a nicely-staged, well-priced listing and what you just might get is your property SOLD in a matter of days, as well as a satisfactory price. And that’s gold, baby!
As hot as the Toronto real estate market is (and make no mistake, it’s hot), it’s still possible to overprice a property. If your house hasn’t sold in this market, it’s the price. It’s always the price. The price vis-a-vis the location and/or its condition. If you held off offers, and showed potential buyers the door because you didn’t like what you saw, you just might have passed up a great offer. Think about it.
Take Nothing For Granted. Sellers, the market is yours. However, if you want to knock it out of the park, support your marketing strategies with these dealing-making tips.

A Few Tips For Toronto Buyers

Inventory is depleted, Part I. Those who hesitate (read: buyers) will lose. If you delay viewing properties for even a day, you’re going to be inspecting the property while nimble buyers are signing the offer.
Inventory is depleted, Part II. Even if you are fast out of the gate to view a property, you can’t waffle on making an offer. If you are the real deal (read: a motivated, financially-qualified buyer), AND the listing meets your requirements, AND it’s in your price range AND you LIKE it, why would you hesitate?
Inventory is depleted, Part III. As much as buyers want to negotiate, this summer low-ball offers just aren’t cutting it. Why would a seller even consider such an offer when other buyers are willing to go in with their very best? All these offers do is make the competitive offers look even more attractive.
Persevere. If you’re bidding in the right price range, you’ll succeed as long as your buying strategies are sound.

It’s All About Neighbourhoods
In Toronto Real Estate Market

If you want a demand neighbourhood, be prepared to compete. Many listings will advise that offers are being held off, which is a clear signal the seller anticipates multiple offers. This, of course, frustrates many buyers, and the cries of “unfair” and “manipulative” ring out across the city. However, it’s the seller’s call as to how offers are handled. After all, it’s their property. They have absolute discretion regarding the presentation (read: when and how), the response to, and the acceptance of offers. Many listings are silent with respect to offers, but that doesn’t mean you won’t be in competition. The explanation for all of this: Supply And Demand.
Be open to alternatives. If you’re not prepared to compete, be warned the demand neighbourhoods will offer you nothing but frustration. You’ll see properties you love that you’ll walk away from, again and again. Or, you’ll spend time making inadequate offers that only serve to make the others look way more competitive. What a waste of time! Find other neighbourhoods that are off the radar. You know, the ones that just might have everything you’re looking for with potential for price appreciation, minus the hefty price tag.
Emerging neighbourhoods are called that for a reason. There’s a long way to go before these neighbourhoods “arrive”. Prepare to be shocked. There’s potential, certainly, but also a need for big infusions of cash. Your cash. And you might have to wait for quite some time to enjoy amenities typically found elsewhere and the reputation of trendy to be bestowed. But in the end … the rewards can be great.

I hope this has been a cool breeze on a hot real estate day!

Toronto buyers and sellers! Are you looking for a Toronto real estate agent who knows how to play the game in today’s challenging market? Call Lauren at
416–550–6991, or send me an email.