Have you been thinking about possibly buying a home in Toronto and aren’t quite sure what the process looks like?
The thought of buying a home can be daunting and sometimes scary when you don’t know what to expect. With very little supply and currently record low inventory of available properties in Toronto, it may seem that you have zero chance of successfully securing a home. The good news is that many homebuyers are securing themselves a home even in our current competitive market.
How are they managing to do this? Based on my experience as a full time Toronto real estate agent, I can pretty much guarantee that these successful buyers have had all of their ducks in a row and were properly prepared to submit a strong offer at any moment. Like most things in life, the more prepared you are, the better the chance of you successfully achieving your objective.
In order to help you understand the buying process, I have included 7 steps to buying a Toronto home below.
STEP 1 (Determine Your Downpayment)
$500K purchase or Less
5% for purchase of $500K or less
$500K – $1M purchase
5% of the first $500,000 of the purchase price
10% for the portion of the purchase price over $500,000
$1M or higher
20% of the purchase price
STEP 2 (Get Pre-Approved)
Speak with your lender to find out what amount, rate and term you can be approved for. Never submit an offer on a property before knowing your numbers and your limits.
STEP 3 (Interview Toronto Real Estate Agents)
What To Look For In An Agent:
- They are a full time agent
- There are no bad reports on RECO’s site about them
- They have good reviews
- They know your neighbourhoods of interest well
- They are readily available to answer your questions and concerns at any time
STEP 4 (Start House Hunting!)
Some Things To Consider During Your Search:
- See if there is a pre-listing home inspection and property survey available to review
- Review the status certificate if available (condos)
- Look at recent comparable sales with your agent to determine what is a reasonable sale price
- Determine if there is an offer date
- Ensure your deposit is accessible
STEP 5 (Submit & Negotiate an Offer)
Discuss the recently sold comparable properties in the area with your agent and determine what the best initial offer price is. If there is an offer date, it is likely that there will be other offers so you should know your maximum limit before submitting an offer. Your agent will put together your offer according to the total number of offers. Make sure your deposit is available in case your offer wins.
STEP 6 (Schedule Home Inspection)
This could potentially save you money and headaches.
If there isn’t a pre-listing home inspection available, it is always a good idea to arrange to have your own home inspection completed. When not competing against other offers, you have a better chance of having an offer conditional on a home inspection accepted. Discuss this with your agent before submitting your offer.
STEP 7 (Closing Day!)
Once the lawyers have completed the closing and the funds have been transferred, the keys to your new home will be provided to you and it will be time to celebrate.
Congratulations, you are now a new home owner!
Are you thinking about buying a home and have questions about the process or the market?
Contact me any time with any questions or concerns you may have. I’m happy to answer all of your questions or concerns for you.