Everything is selling out! If you don’t get this house you might not find another. There aren’t enough affordable homes in Toronto, and it might just get worse…BUY NOW!!!
None of this is true, but that’s the way it seems to many Toronto home buyers. It can be agony to participate in one or more multiple offer situations, only to lose out again and again, and if it sometimes feels like it’s a no-win situation, that’s because it can be.
To avoid the anguish of multiple offer situations, it helps to understand the mentality behind them. Sellers and Realtors do their best to create an ‘auction’ situation, to attract multiple bidders and ideally the best price and terms possible for the seller. The homes that generate auction-type interest generally follow a formula. The home is staged to look fantastic, calling attention to the best features and drawing attention away from any faults; it is underpriced to attract the interest of more buyers (who couldn’t afford it but who may fall in love and try an offer, thus increasing the impression of demand and encouraging others to bid higher as well); and usually an offer date is featured about a week or so after listing to insinuate that there will be plenty of interest and that a date and time are required to bring order to an unruly crowd of buyers. If successful, this creates a heightened sense of urgency and demand, causing normally sensible people to do very nonsensical things, such as making higher offers than are reasonably affordable, and regretting it later to the tune of thousands of extra dollars in payments and interest.
This buying frenzy has been partially responsible for the overheated Toronto housing market, and current values (a loose term at this point) have seemingly priced many people out of the market completely. I say seemingly, because it’s all based on illusion! There is not a shortage of affordable housing in Toronto; there is only the impression of a shortage. What folks don’t realize is that even in the hottest markets, most homes don’t sell. This means that at any given time, in neighbourhoods across the city, there are plenty of homeowners desperate to negotiate a deal with you, and plenty of overlooked homes to choose from.
If you’re in the market for a house in the Greater Toronto Area, there are plenty of ways to be smart, avoid the emotional roller coaster that goes along with participating in bidding wars, and purchase a home that is both a wise investment and which will not leave you mortgage-poor every month.
If you’d like to know more, let me treat you to a coffee and we can talk. No obligation, ever! You can reach me at 416-930-4388 or firstname.lastname@example.org. I look forward to meeting you!