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How to buy a home in a scarce marketplace?
The Toronto real estate market right has become incredibly competitive due to the lack of condo and house listings. Because the majority of condos don’t have offer dates, it means getting clients into great condos within the first couple of days of the suite hitting the market is critical. A few weeks ago I made an offer on behalf of a client for a condo townhouse in the Yonge & Eglinton area. The townhouse came on the market on Friday. I showed it to my client Saturday. Sunday we put in our offer. By Sunday night, there were now 4 offers on this unit and unfortunately we lost out.
In the housing market, even though there are offer dates, I encourage clients to skip the queue and make a bully or pre-emptive offer long before offer night. I recently helped my clients purchase a great home on in the Yonge & Lawrence area using this tactic. I spend a lot of time looking for new listings in the areas my clients are searching, and on Monday around 3pm, I noticed what I felt could be the perfect home for them. The husband was available to see the home at 4pm. After our showing, he decided he loved it and his wife needed to see it, so at 5:30pm his wife came in to see the home and she loved it too. While at the house, I noticed that only the business cards of my colleague & me were present, so it would be a great opportunity to present a bully offer as we were the only ones who had seen the house. I mentioned to my clients that people on property match (daily listings clients receive from their agents) or using realtor.ca would see this house the next day on Tuesday so they wouldn’t have a chance to react. In addition, it was the first day back to school from March Break so people wouldn’t be as focused on their house hunting right now. We put in our offer that night and Tuesday afternoon, my clients had an accepted offer and a new home. They were thrilled. Their home search had finally come to an end in the perfect neighbourhood.
I worked with another couple looking for a large downtown condo. The perfect 1300+ sq ft condo with 2 +1 beds and 2.5 bathrooms overlooking Roy Thompson Hall came on the market. We went to see the condo on its second day on the market and made an offer the next day. My clients finally had the place of their dreams and the listing agent informed me that she was receiving many calls from other agents whose clients were upset she sold it so quickly to my clients.
As I always say, the early bird gets the worm and that seems to really be playing out in the 2016 real estate market, where buyers and their agents need to be really aggressive with what they want in order to buy the place of their dreams. Toronto has become like New York: if you want it, someone else does too and your only advantage is to beat them to it.