Toronto’s condo real estate market is filled with first-time buyers and investors looking to sell. Naturally, mistakes happen in the buying and selling process. Regardless of whether this is your very first real estate transaction or you’re experienced with the process, here’s how others minimize their mistakes to save them time and money in buying and selling Toronto condos.
Buyer mistake #1 – Spending more than you can afford
If a buyer is struggling to afford their monthly mortgage payments, they know they’ve spent too much on their condo. Always leave room for unforeseen costs, in addition to the condo fees, electricity, and other monthly expenses you must manage.
Buyer mistake #2 – Not considering the future when buying
When you buy a home, take inventory of your life. Look at where you expect to be five years down the line. Many buyers find they outgrow their home within a few years, especially those who have a family. Any time you move, there are moving expenses, real estate fees, and lawyer fees. Throwing these away on a property you don’t intend to keep for the long-term is expensive.
Buyer mistake #3 – Not considering your lifestyle
Some buyers may purchase their condo based solely on turning a profit on it or for the luxuries included. Consider your lifestyle and the lifestyles of those who could be living with you. Anyone with pets or children need to make a lot of considerations prior to purchasing.
Buyer mistake #4 – Spending without doing research
Walk through the neighborhood. Research local facilities. Visit the parks. If possible, get an inspection report done to determine where there could be issues. Although many Toronto condos are as close to new as you can get, due diligence is still important.
Buyer mistake #5 – Not budgeting for closing costs
Consider any lawyer fees, transfer taxes, mortgage restrictions, title searches, insurance, and additional fees which may need to be considered. At the end of the day, closing costs can be up to 2 percent of the final sales price on a property.
Seller mistake #1 – Pricing below or above market
Always price according to the current market. Unless you need a quick sale, if you price it lower than market value, you could be leaving money on the table. If you price it too high, you could turn off potential buyers.
Seller mistake #2 – Not preparing your home to be viewed
Prepare your home for sale. Get ready to showcase its most positive aspects. Make sure everything’s where it needs to be. This way, when a seller arrives, they’ll see the value you know your home has.
Seller mistake #3 – Not being available to show
Anyone selling your home should ensure they’re ready to make the necessary arrangements to schedule showings at the convenience of the buyer. Be ready to close at a moment’s notice, should the right offer come along. You may not get the same offer twice!
Seller mistake #4 – Ignoring offers below-asking
Buyers like to negotiate. If someone’s made an offer below-asking and you’re not interested, kindly advise them so. Every offer should be considered. If offers are not as high as you’d like, negotiating a lower-than-expected offer to get it to where you need it to be is not such a bad idea.
Seller mistake #5 – Not making your home available to inspectors
After you’ve accepted an offer, it’s necessary and polite to ensure any inspectors or appraisers have access. Remember, at any point, a buyer can become uncooperative – even if you’ve already accepted their offer.
No matter on what side of the fence you find yourself on the Toronto condo market, sticking with these rules will keep you on the straight and narrow. For buyers, it’ll ensure your offer’s competitive to what’s around it. For sellers, it’ll ensure you sell your home the way you want and within a reasonable time frame.