7 House Hunting Tips to Make You a Savvy Buyer

The recent changes in the Toronto real estate market are exciting for home buyers. There’s a larger selection of homes on the market and in some instances prices have come down.  It’s still not a slam dunk for buyers and they need to be thoughtful in their approach. However, armed with the right information, you can be well on your way to finding your dream home. To help you in your search, we’ve put together a list of seven key house hunting tips that every buyer should be aware of. Let’s go!

1. Get Your Financing in Place

It’s disheartening for many buyers when they find their dream home, only to realize that they miscalculated what they could afford and won’t be in a position to make an offer. It will save you time and disappointment if you talk to lenders before you start your search. This way you’ll know what kind of prices are actually within reach.

Also, if you’ve already been pre-approved in the past, for example within the last six months, don’t assume that it still stands. In general, banks have become more stringent when it comes to mortgage approvals in the last couple of months. Therefore, it’s wise to reach out to your lender and reconfirm your approval before spending a lot of time viewing properties.

2. Be Aware of Appraisal Values

Bank appraisals are part of your mortgage approval process. Once you have selected the home you want to purchase, the bank will want to do an appraisal of the property to make sure that it appraises for the amount you are paying for it. If the bank values it at a lower price than you paid, they may lend you less money than you were pre-approved for.

3. The Home Inspection Is Back

In the past, with so many properties selling after multiple offers, often involving bidding wars, conditions have been thrown out the window. There was a time when buyers wouldn’t even consider adding conditions to their offers, as sellers might not even look at them.

However, many properties are now selling without multiple offers. Sellers want to do a deal and are now far more willing to consider offers with conditions. This is a great opportunity to include a home inspection as a condition in your offer. An inspection enables you to avoid the unexpected and may give you some wiggle room with price if issues are found.

4. Negotiations Need to Be Win/Win

Buying a house is much like any other business transaction. For a deal to happen, it needs to be a win/win situation for both the buyer and the seller. The seller wants to get a fair price and the buyer wants to feel that they are getting value for their money. As a buyer, you need to think about what’s most important to you and include this in your offer. On the other hand, concede on the things that are less important. This is the best way to ensure that you and the seller are both happy and the deal gets done.

5. Consider Selling First

This is one of those house hunting tips that depends largely on the state of the current market. If you have a home to sell, and you’re wondering whether to buy or sell first, the latter might be the best option in today’s market. Firstly, selling your house before buying provides you with certainty on how much money you will have to spend on your new home. Additionally, with houses taking longer to sell, this may be a less stressful option for you. Otherwise, if the sale takes longer than you anticipate, you might find yourself having to accept a low offer and/or paying for bridge financing.

6. Buy a “5-Year” Home (at Least)

No one can predict the ups and downs in the market. While you might have plans to buy again after a couple of years, you may find that market changes make that a less than wise choice. Therefore, it’s always best to select a home that you can comfortably afford and will be happy in for at least five years. This way you don’t need to be concerned if the market goes up or down in the short term.

7. Work With a Local Neighbourhood Expert

When looking for the right person to help you with your search, it’s always a good idea to work with someone who knows your target area inside and out. A local expert will be able to identify homes that represent good value for money. They know the price points in their neighbourhood, and why certain homes sell for more than others. They are also in the know about what’s coming on the market and can often find hidden gems in the neighbourhood.

If you’re thinking of buying in Etobicoke, we’d love to help. We’ll meet with you and help guide you through the entire process. Click here to arrange your private buyer consultation today.

Image credit: Mark Moz