Why is Buying On The Slide a Buyer's Advantage In the Toronto Real Estate Market?
First lets consider a Sellers Market;
A Sellers Market occurs simply when there are more Buyers than Sellers. This trend has been in place since 1996 and has continued upwards till 2008. If there are two listings and 20 buyers, the home owner is able to dictate price, terms of the sale and deposits that accompany the Agreement of Purchase and Sale. The home owners took their appliances, chandalier, and window coverings. You agreed because you were happy to pay. If you were in a multiple offer situation, the group mentality applied and you paid because you wanted the property.
The Seller had Control of the Situation.
We started to see hesitation in the marketplace around October 2007, and the buying /selling dynamic started to "shift".
This Shift in the Marketplace has moved us into a Buyers Market.
You can take advantage of the Buyers Market by being a qualified, ready to buy customer and force the homeowners who need to sell to come to US with their Offers to Buy.
Are we taking advantage of the situation? Yes! Absolutely. Everything, that I learn about the Seller's situation is available to you, from the negotiating perspective. (If you are under a brokerage Representation Agreement with me.)
What have you gained? You now have the upper hand against the Seller.
Lets put this into a practical example. Let us assume that you want a house in Neighborhood 'A', and there are 25 listings available for sale in that neighborhood. From the Sales to Listings Ratio, we know that only one house in ten will be sold this month. How do we find the most motivated Seller? We pick the best homes you and I have seen together, start with an offer of the best one, and present it to the seller. Remember, an Offer must be agreed to by both parties. If the first one doesn't want to negotiate, then we move on to the next one. The seller who truly wants/needs to sell will make his presence known to you because he NEEDS, WANTS to sell and be gone. Interested?
You as the Buyer will dictate the terms, conditions, inspections, appliances and even the family chandalier that you never had a chance at before. Let's ask for everything.
So ..... Lets wait and see, we'll buy when the market has bottomed out.
There are a few different lines of thought; when the market has bottomed, you and I together are looking at historic values, so the exact date of the purchase can never be forecast. In a Balanced Market there will be no "motivated or deperate" Sellers that make their house extra appealing to you to buy as an Under Market Value Purchase. There is NO Leverage.
Secondly, if you are in a rental and are paying someone $1500 per month, for an average of the next three years, becomes $54,000 in actual payments that could have been used to pay down your mortgage or improve your property. If you don't believe me, talk to a Mortgage Specialist.
Lastly, Current interest rates are at 4 - 5% on a blended mortgage balance (variable plus fixed averaging). These rates are at a historically low right NOW. I believe there will be additional interest costs as people ( especially Governments) continue to borrow.
For those Selling and Buying into the same market there is no effective change. Sure you may get less than your neighbour did a few months ago, or back to last years values...but you will be buying with me and saving as you upgrade your property. The benefits for you are enormous.
Why don't you and I get together and have a coffee and talk about Buyers Agency and the whole process of making a move in this market.
Contact Betty Bartusevicius for your own private viewing of a property that would interest you at 905.828.3434 or directly at 416.427.1875.
Re/Max Realty Specialists Inc., Brokerage
Contact me by email: http://www.bettybart.com/AgentProfile/contactme.cfm
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