Over the long term, the real estate market will likely keep getting more competitive, especially in highly desirable areas like Etobicoke. When interest rates come down, buyers will likely return in full force to resume the search for a new home.
In the meantime, however, there are incredible opportunities for those who are hunting for a house in Etobicoke right now. Sales are slower than they have been in about a decade, prices have dropped, and a surplus of inventory gives you a wide range of options.
In this post, we’ll talk about how to identify and take advantage of this window of opportunity – where you can still get a fantastic deal on an Etobicoke Home.
Before beginning your home search, it helps to know what is happening in the current market. The posts below will bring you up to date:
- What Is Going On In The Etobicoke Real Estate Market Today?
- Where Is The Best Value In Etobicoke When Buying A Home?
- Can You Still Buy A House In Etobicoke For Under $1 Million?
Watch for Motivated Sellers
Everyone has a different reason for wanting to sell a house. Some have seen an improvement in their financial situation and want to upgrade to a bigger and better place. Others have had enough of caring for a large property and want to transition to something smaller.
Sellers in these scenarios hold more bargaining power when evaluating offers. They want to sell, but there’s no urgency in the matter. If they don’t get an offer high enough, they might just pull their home from the market and decide to wait it out.
The best deals for you as the buyer are when the homeowner needs to sell. Something has changed in their life and it is no longer a choice. This can happen for a variety of reasons. For example:
- The homeowner has already placed a deposit on their next home, and they must sell theirs to complete the transaction.
- High interest rates have made their monthly payments unaffordable, and they don’t want their home to go into foreclosure or power of sale.
- They may have received an offer for their dream job, which requires them to relocate.
Whatever their reason, some homeowners make a fast and straightforward sale their highest priority, even more than earning top dollar.
As a buyer with the intent and ability to make the purchase, your offer can be a lifeline to a motivated seller. How can you spot these opportunities? One indication is that the homeowner is offering extra incentives to the buyer, like a brand new gas BBQ, high-quality patio furniture, or other valuable inclusion to sweeten the deal. A well-connected real estate team can keep an eye out and bring any listings with motivated sellers to your attention.
A Home With Poor Presentation
“Presentation is everything” is a common saying that applies to everything from food and clothing to web design. It is especially true in real estate – except to a savvy buyer who can look past a messy room and see exceptional potential.
Poor presentation happens frequently when a landlord decides to sell off their rental property. Unlike the homeowner, tenants rarely spare much effort to clean up for a buyer’s visit.
The sink may be piled with dirty dishes, the laundry scattered everywhere, and the bathroom mirrors coated in grunge. However, the house itself is in perfect – or almost perfect condition.
You might be surprised how many buyers turn away from a poorly presented property. Their oversight might be your opportunity to secure a premium home at a discount.
A Surplus in Inventory
Even when supply is tight, there are often mini-pockets around Etobicoke that have an excess of available listings. Think of a condo building where there are three identical units for sale. If another buyer outbids you on one listing, another one remains. This surplus enhances your negotiating power since it doesn’t matter which unit you purchase.
This can also happen in a neighbourhood where there are multiple listings on the same street. Detached homes will have different features that could add or subtract from the selling price. However, the number of homes for sale insulates you from the primary factor that drives up prices: buyer competition and bidding wars.
A high inventory market creates the best possible conditions for the buyer. You can take your time to choose and negotiate the best price and terms.
Do you need to sell your existing home? The posts below can help:
- What to Look For in a Real Estate Agent When Selling Your Home
- Can You Earn More Money By Staging Your Home?
- Advice For Seniors Selling Their Family Home
Outdated, Cosmetically Imperfect
Finding a house that’s cosmetically flawed is one of the best ways to secure a home for the lowest possible price. In some cases, the homeowner didn’t want the expense or effort of upgrading before selling.
However, there is a delicate balance between finding a home with minor flaws and ending up with a structural disaster. The first means you can often secure the house at a low price with money left over to make the renovations you want. The latter means non-stop headaches with one badly needed repair after another. Concern over the condition of a home causes many buyers to pass on these opportunities in favour of one that is move-in ready. If you know what to look for, an outdated home can be a fantastic way to break into the market for less.
Requesting a pre-listing inspection helps you avoid significant and unexpected problems with your new house. In addition, there are several telltale signs of a home that is simply outdated but structurally sound:
- The floors may not have been changed for a few decades. However, old floors with relatively little wear and tear would suggest that the home has been loved and well cared for.
- There are nail holes and discolouration on the walls from where artwork and photos were displayed. Maybe there’s even a large dent in the plaster from when someone moved the furniture around. It looks bad, but it’s nothing a little putty and a fresh coat of paint can’t fix.
On the other hand, there can also be some danger signs that the house you’re considering might not be worth repairing even if you get a great price. Cracks in the foundation or a leaking basement often indicate deeper problems that are very expensive to fix.
Want to know more about how to find undervalued homes? Read How To Tell If Your Dream Home Is A Money Pit Or A Worthwhile Investment next.
Houses Sitting on the Market
Some potential buyers get spooked by a house that has been sitting on the market for longer than average. If no one has bought it yet, there must be a problem! It’s the same psychological phenomenon that causes hungry diners to stand in line outside a busy restaurant rather than eat at one with empty tables.
However, the real estate market is complex. There could be several reasons that one listing takes longer to sell than another, and something “wrong” with the property is only one.
Even so, you can eliminate the vast majority of your worries by requesting a home inspection before putting in your offer. If everything checks out, a homeowner who has been trying to sell for a long time might be very open to negotiating with you.
Looking for more info?
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