Due to the competitive nature of the Toronto real estate market the list price of a property does not equate to what the property will sell for. Often times clients will come to us with a fantastic property with a list price in their price range, only to find out from us that the property will sell for significantly more because it was listed low. Even after informing them the property will sell out of their budget, some buyers still want to see the property. This is almost always a bad idea! When a buyer sees a property they cannot afford, they will compare every future property to that more expensive property and end up disappointed. As Realtors, the one thing we never want to do is create unrealistic expectations, because that does not lead to a happy buying experience.
As mentioned above, it is common for sellers to list their property under market value to create what is known in the industry as bidding wars. Far too often new buyers are too timid to offer much more than the list price. The best practice is to completely ignore the list price, as more frequently than not they are misleading. Instead, focus on market value. In order to win a bidding war it is very important for your Realtor to properly inform you of the true market value for the property. This will give you the best chance at winning when offer night rolls around.
Lastly, we see too many buyers quickly rush to buy a property. Either they don’t leave themselves enough time to go see properties or they start the process far too late. Both lead to a rushed and stressful process. We always recommend our buyer clients see as many properties as possible and to take their time throughout the buying process. Even in the early stage of your home search, we recommend going out on context showings. This provides a feel for homes in their price range and desired neighbourhoods.
As you can see, there is much more to the home buying process than initially meets the eye. Keep these three crucial points in mind and you will have a great time on your search for the perfect place to call home.
Don’t fall victim to these 3 mistakes or any of the others we commonly save our clients from!
When you work with Coral Realty you get a team of experts for one. Our team approach lets us provide customized buying strategies for our clients, based on individual needs and current market conditions.
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