Buying a house in a tough market like Toronto can be very emotional draining. There are many obstacles to overcome such as bidding wars, no inspection clauses, no finance clauses, and being unsure of so many factors.
In a crazy market, it is best to find your house first then sell after. The reason being that you will not be forced to buy something you don’t like if your time runs out on the selling end.
I have witnessed many buyers go through what I call the Buyers Blues through my travels, and in many cases there are a few steps to avoid this from the beginning. Here is my list of things to do:
1. DO NOT FALL IN LOVE with the house you see. When you are looking for a house, always keep in mind the house is not yours until you get the keys. Even if you have a firm deal in place there are many things that must happen before you are actually living there.
2. Be Realistic: Do not look at houses that are under priced and out of your price range. Examine your budget and what you can afford before going out and searching for houses
3. Get Pre-Approved: Make sure you are pre-approved and can possibly get your offer approved with an under writer before sending it off. This will ensure you can submit an offer without your finance clause.
4. Get a Walk-through home inspection: I have a home inspector that will give a walk through home inspection without all the bells and whistles. Basically just making sure the key points of the house are in dis-array. This will help you remove the inspection clause that will lose you the house.
5. Go by Comparables, not listing price: Never ever look at the listing price and say you can afford that. You need to look at the comparables, and go by the last sale. Even then add some money. To win a bidding war you must be aggressive and sometimes go beyond the comparable just to get the other bids out.
6. There are more houses out there: Yes you might have lost out on a house, but be sure that there are other houses out there. It is devastation sometimes that you lose a house, but be assured there are more out there.
As you can see there are a few things to do while trying to buy a house, there are many mistakes you can make and many ways to put stress on your life. Try to follow these steps and get into something new.
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