Are we still in a buyers' market? The answer is yes, but anyone thinking of buying a property should lock in the mortgage rate with their local bank and start the process as soon as possible. The fundamentals of the GTA real estate market continue to be excellent and the ability to lock in a 5-year rate in the range of 4% should not be missed! To prepare for the process, prospective buyers need to undertake the following steps:
Get prepared, this includes:
1. Finding a skilled realtor, who is familiar with the areas you want to live.
2. Get pre-approved for financing,
3. Clearly identify what kind of property they are looking for (i.e. condo, freehold, townhouse, etc.)
4. Decide which features in the property are important
5. Decide what part of the city provides them the best lifestyle fit.
Choosing a skilled professional realtor is the probably the most important step in this part of the process, as they can help guide you through all five steps.
Next, with the help of your real estate professional, become an expert in your preferred neighbourhood—your market. Your realtor should be able to provide daily updates by e-mail of what’s selling in your market. Check out open houses and recent sales so you have a good sense of what property values really are. Again, your realtor is a valuable resource to help you build your knowledge so you can make an informed choice.
Finally, use your realtor to help do ongoing market reconnaissance. By working with a skilled realtor, he or she can let you know if a property has recently dropped in price, or has been on the market for a long time without results. If the vendor is very motivated to sell it may be an ideal time to come to the table with an offer. When you find a house that meets your needs and wants, in the area where you would like to live, go for it! Only by putting an offer out do you really understand how motivated the vendor really is.
One last word of advice -- finding the bottom of “your market” takes time and effort from you and your realtor. Don’t start looking at properties until you have completed the first phase and your financing is available - so you’re ready to submit an offer if the right property magically appears. Remember, market values can change quickly. Starting the process before you are ready will typically result in frustration for both you and your realtor.
The bottom line? Choose your real estate purchase for the right reasons – long term appreciation in home values, affordable pricing, great carrying costs at historically low interest rates and most of all, the pleasure of home ownership. Chasing the bottom of the real estate market is an elusive target. You will never find the pot of gold at the end of the rainbow - and you will not find the best real estate deal by waiting for the market to drop and watching from the sidelines. What’s more, while you are waiting and trying to time the market, someone else may snap up that one home that is just right for you and your family.
So, don’t go chasing rainbows. Instead, get prepared, do your homework, and talk to your Coldwell Banker Terrequity representative. They will help you pick “your” market and find the property which is best suitable to your needs. It may not be a pot of gold, but to my mind, that’s the real treasure at the end of your journey.
Andrew C. Zsolt, Ca, Mba, Fri, is the founder and Broker of Record of Coldwell Banker Terrequity Realty, Brokerage – the number one Coldwell Banker franchise real estate brokerage in Canada. Andrew has made appearances in The Globe & Mail as well as The Toronto Star as a notable real estate expert. You may contact Andrew via e-mail at azsolt@terrequity.com.
