How to Be a Buyer in a Seller's Market
If you’re looking to buy a home it’s likely been a pretty frustrating year or two… prices have been making large increases at a time when supply is very low and competition high. We hope you know we’re feeling all the feels with you and there’s only so much you can do other than stick close and try to keep ready to jump quickly.
How can you be ready to buy?
Get REALLY WELL pre-approved - Make sure that your Mortgage Professional runs your credit check, has your financial documents like pay stubs and employment letters and get a pre-approval/rate guarantee in writing.
Know your numbers - What’s in the bank for your down payment (if it’s less than 20% you’ll need to factor in an insurance premium)? Budget for legal fees and land transfer tax ( there could be a rebate available if you’re a first time buyer). Calculate the maximum mortgage that you qualify for but know the number you are most comfortable with (they aren’t always the same number). Have the deposit that accompanies an offer ready to go (not to be confused with the down payment), you may not have much notice before you submit an offer and it needs to be available.
Choose your Agent early - It’s important to click with your partner in this journey so don’t be afraid to interview a few different people. Ask friends and family, do your research and decide on one that you’ll commit to. It makes everything smoother when you know someone has your back.
Shop below your budget - With the number of properties selling at or above asking price you need to leave room for the possibility that you might need to offer higher than you think.
Be patient - This should be a super fun time especially if it’s your first home purchase, and eventually it will be! But try not to get your heart set on the first place you submit a offer on - a wonderful buyer we worked with in 2017 offered on 7 before he purchased his first home…
Keep planning - While you’re looking keep saving to increase your down payment, watch your spending, don’t take on any new debt if it can be avoided, pay down loans and check your texts from your Agent ASAP!