How To Win A Bidding War in Toronto?

Bidding WarsYou are one of the fortunate. You have landed a decent job, have managed to save a down payment and understand that buying a home is a great investment that will put you ahead of the game.
First of all, congratulations! Well done!!! You are setting yourself up for a very bright future. Now, the real work begins.
The fist time buyer market is one of the toughest markets in the city. Why? There are more buyers than there is supply, which translates into lots of competition for the decent homes in this market. Bidding wars are still the norm in this market and they require a well thought out strategy and plan.
What is a bidding war? A bidding war is when the agent lists a home, sets up a specific offer date and accepts and reviews all offers on that date. The advantage for the seller is that it is a relatively effective way to get the highest price for your home in the shortest period possible.
For a buyer, you may be wondering how to win a bidding war.  It means that you are going to need to make your mind up on whether you want to bid on the home quickly, and if you decide to bid, position yourself to put you best bid forward.
This means clearing yourself of all conditions in your offer. Have your financing in place in advance and be comfortable with either the building inspection that has been completed or complete your own inspection prior to putting your bid you’re Your agent should review with you the what recent properties have sold for in the area to give you a feel of market price. Agree on what your maximum bid is for the property in advance and be disciplined in only bidding to your maximum.
Again, bidding wars are a reality in this market. Do your homework to position yourself to win and set yourself up with to succeed in this competitive market.

How To Talk To Your Real Estate Lawyer

lawyerMany times people go see their real estate lawyer after they have signed an agreement to purchase a home.    It is always best to have that contact as early as possible in the home buying process, even before you sign the agreement of purchase and sale, to benefit most from your lawyer’s information, advice and insights.  Your real estate agent should be able to recommend a couple of local real estate lawyers that do business in the area that you are purchasing your home.  Meet more than one, and make your own decision based on which one you are most comfortable with.

Be ready to ask questions, such as:

• Have all building permits and final inspections been obtained for the home?

• Should you get a new property survey?

• Should you buy title insurance? What does title insurance do for you?

• What due diligence searches will be undertaken and which will not? Why?

• Would you benefit from an alternate home ownership arrangement where you split ownership with a co-owner, based on your family situation?

• Will you need permits or other legal approvals to renovate/add to your home or another property?

• Is anything preventing you from renting out a part of your home or running a business from your home?

• What is power of attorney, and should you have one?

In most instances all goes well with the closing of your house.  If things do go astray, you will be very grateful that you have a good lawyer to take care of things.

 

 

 

Will an open house help sell your home?

Benefits of an Open House

I am often asked whether a seller should agree to open houses when they put their home up for sale. Some say it helps the agent find new clients and does nothing to sell the home. Others say it is necessary to find the largest number of potential buyers. Which is correct?

In practice, there are two kinds of open houses. One is limited to real estate agents, so they can conduct research in the area and be able to recommend the right homes to their buyer clients. The second is open to the general public. This can include nosy neighbours who just want to see your home, buyers who don’t have nearly enough money to consider putting in an offer and real prospects for your home.

Open houses will definitely lead to more exposure for your home and more feedback from potential buyers. Many agents will send their clients to open houses.  Many buyers enjoy first viewing

Still, in a seller’s market, where there are more buyers than available properties, open houses are a good idea so the maximum number of buyers can see the property in a very short time period.

If you do agree to conduct an open house, here are some tips:

• Make sure proper home staging is done in advance so your home appeals to the maximum number of potential buyers.

• Do not stay in the house during the open house. You are more than likely to volunteer too much information, including why you are selling. This will hurt your negotiating position later.

• Make sure your agent will be there the entire time.

• It is not against the law to ask for identification in order to allow someone to enter your home. If they refuse to provide it, tell your agent to refuse them entry.

• Sometimes criminals will come in pairs; while one distracts the salesperson, the other is going through drawers. If a lot of people are expected make sure your agent brings an assistant.

• Ask your agent to check all windows and doors before they leave your home to make sure everything is properly secured.

• Remove all valuables or store them in a safe, if you have one in the home. This includes your laptop and any discs that may have your personal information on them.

• Keep all of your bank and credit card statements out of view, as this could lead to identity theft if someone takes them.

• Take pictures of each room so you can check later if something is missing or damaged during the open house.

Whatever you decide regarding an open house, make sure you are properly prepared in advance.

If you are thinking of selling your home, lots more resources on My Website