The Real Estate Market Prepares for Phase 2 Re-opening
The Real Estate market has made great strides over the past few months implementing protocols to serve Sellers and Buyers safely. As Ontario opens up Phase 2, the real estate industry continues to make the necessary changes ensuring the safety of all active Buyers and Sellers with the use of hand sanitation, high-grade cleaning, masks, and virtual services.
The GTA is Experiencing a Multiple Offer Market
We have seen an up-rise in real estate activity as businesses begin to re-open. June has shown an increase in inventory on the market, providing more opportunities for Buyers compared to last quarter. As a result, many Buyers and Sellers are finding themselves in a competitive situation with multiple offers.
When facing a multiple-offer market, keep these tips in mind:
Tips for Buyers:
With the potential for multiple offers, Buyers have to decide if they are willing to offer over the asking price. To help my clients make the decision, I ask a series of questions. For example, if a property is listed for $1M, I will ask my clients, “If you know the Seller will accept $1.1M, would you pay $1.1M?” If the answer is no, I ask the question again decreasing by increments of $10K – $25K until we arrive at the number providing my clients the confidence of no regrets with their offer in price. Asking this question allows the Buyer to arrive at the number they are comfortable offering.
To strengthen your offer, consider which conditions, if any, you can waive. If you submit a firm offer removing home inspection and financing, generally, you have a better chance of success.
Another critical aspect of your offer is the closing date which can be equally as important as price to the Seller. Accommodating the requested date will give you an advantage. If you have to alter the closing date, you have to account for that ask by adjusting the price, deposit, or the conditions to gain favour from the Seller.
A substantial deposit speaks volumes. A large deposit amount shows the Seller you are serious as the Seller has no way of knowing the Buyer’s financial situation. If the transaction is not completed for any number of reasons, the Seller is entitled to keep the deposit. If the Seller has to reintroduce the property on the market, the Seller may sue the original Buyer for the price differential.
Tips for Sellers:
Sellers need to ensure their realtor is organized and a great communicator. Outline clear instructions on how you are conducting the hold back offer date and discuss if you are interested in viewing preemptive offers. The Seller should provide a home inspection if they expect Buyers to waive the home inspection condition. Throughout this entire process, clear communication is vital.
Favorable Lending Rates Added Heat to the Summer Market
In March, The Bank of Canada dropped the key lending rates three times, and the mortgage rates have remained low, allowing Buyers to leverage their purchasing power. It’s a good time for homeowners to remortgage their homes to take advantage of the lower rates. To discuss your options, I am always here to assess the value of your home, in person or virtual, and help you make the best decision for your home situation and goals.
Selling in the Summer Months
As we move into the summer months, if you are considering selling, this is the strongest time to list your home. The summer season presents stunning curb appeal, and the natural light invites warm energy into any space. Create spacious, bright rooms by decluttering and depersonalize the space. When a buyer views a home, they want to envision the lifestyle the home offers.
Taking advantage of the summer months to buy or sell your home has another advantage by helping you get ahead of the US Federal Election in November. News of the election, regardless of the outcome, can be unpredictable. The Canadian market can anticipate a slow-down or softening of prices. The fall election, coupled with the discussions of the second round of COVID-19, could negatively affect house prices.
I invite you to walk through our impressive Listings:
9 Queen St West, Mississauga – Click Here To Walk Through!
? $1,475,000 | ? 3 Bedrooms | ? 3 Bathrooms | ? 2,005 + 668
65 Liberty Street Unit #2202, Toronto – Click Here To Walk Through!
? $1,099,000 | ? 2 Bedrooms | ? 2 Bathrooms | ? 1,390
21 Godfrey’s Lane, Mississauga – Click Here To Walk Through!
? $1,599,000 | ? 3 Bedrooms | ? 2+1 Bathrooms | ? 2,461
The Invidiata Promise
The Invidiata Team is committed to providing our clients with the highest level of services. We can visit you at your home or have a virtual meeting to assess your needs and next steps. The summer months are showing a healthy market, so the time to act is now. If you are considering buying or selling, we will guide you through the process with an exclusive degree of knowledge and expertise.