Buy on the Slide
Why is buying on the slide your Buyer's Advantage In the Toronto Real Estate Market?
First lets start with what is a Sellers Market?
A Sellers Market occurs simply when there are more Sellers than Buyers. This trend has been in place since 1996 and has continued upwards to 2012 [We had a small hiccup in 2008]. If there are two listings and 20 Buyers, The Home Owner is able to dictate Price, Terms and Deposits. The Home Owners took their appliances and chandalier and window coverings and you humbly agreed because you were happy to pay. If you were in a multiple situation, the group mentality applied and you are blindly lining up and forced to pay because you wanted that property.
The Seller had Control of the Situation. The Seller had Leverage.
We started to see hesitation in the marketplace around October 2008, and the buying /selling dynamic started to "shift". People, the Banks, Government were nervous about debt levels and mortgage rates.
This Shift in the Marketplace has moved us now 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.
What have you gained? You, Now have Leverage against the Seller in this situation.
Lets put this into a practical example. Let us assume that you want a house in Neighbourhood A and there are 25 listings available for sale. 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?
Pick five of homes you and I have seen together, and we will make 5 offers on 5 different properties at the same time. The Hungriest Seller will make his presence known to you because he NEEDS, NEEDS desperately to sell and be gone. Interested?
You as the Buyer will dictate the terms, Conditions, Inspections, Appliances and the Family chandalier 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. here is NO Leverage.
Secondly, I am assuming you are in a rental and are paying someone $1500 per month, for an average of the next three years to become a squandered $54,000 in actual money, That could have been used to pay down your mortgage or improve your property.
Lastly, Current interest rates are at 4 - 5% on a blended mortgage balance ( variable plus fixed averaging) These rates are at historically low right NOW, and 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 at this same logic process. 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 Buyers Registration System available from the Toronto Real Estate Board (yet used by less than 5% of the active members).
Email or Twitter/dpylyp
Buyers Registration System
Lets start by making a plan for where you want to be. Call me at 647 218 2414