When you feel like you are in limbo between a buyer’s and seller’s market you are in the throes of a transitional market. Welcome to the Spring 2018 real estate market in Toronto. We are experiencing a fickle period where the market isn’t particularly beneficial for either party. This gives the buyers and sellers some leverage, puts them on solid ground and puts the skill and art of negotiation to the test.
Our Forest Hill Yorkville team has a long-standing history in the Toronto real estate market and have the expertise you need to help you navigate this tricky market scenario. Whether you are looking to buy a loft in Liberty Village, an estate home in Rosedale, an income property in the Annex or a luxury penthouse in Yorkville, here are some tips from Forest Hill Yorkville Branch Manager Catherine Himelfarb Borden on what you can do to ensure you are making a wise investment in an interim market.
1. Work with a professional that understands the transitional market.
Look for experienced realtors and firms that have a solid history and reputation in your area – they will not be new to transitional markets! Our Forest Hill Yorkville team builds on a 30-year history of buying and selling real estate in the Greater Toronto Area. Our rich history comes hand-in-hand with a reputation of integrity, customer service and market expertise. The best advice I can give is to listen to your realtor. They can explain the current state of the market, and how to align your expectations with what is happening in your neighborhood.
2. Understand Fair Market Value.
In a transitional market a sale price will be based more closely on Fair Market Value. Work with appraisers in your area to determine the FMV of the property you would like to buy. Over the years our Forest Hill Yorkville team has aligned ourselves with reputable experts in many fields, including appraisers. You can count on our team to steer you in the right direction, so you don’t get overwhelmed by the process.
3. Determine your budget and walk away number and stick to it.
Work closely with your mortgage broker in advance to understand what your financial limitations are and what the best budget is for your next move. This is valuable information for your realtor as it will fine tune your search and save time. You don’t want to risk losing the home of your dreams to another party who was better prepared.
4. Reduce risk by selling before you buy.
When a market is in transition you want to secure your cash before you spend it, so you don’t get stuck with buying a home you cannot afford (ie. if your home does not sell for the price you anticipated.) Including conditional clauses on the closing of your existing home is another protective measure that should seriously be considered to reduce risk.
5. Be an informed consumer.
Do your research, keep on top of real estate news reports and ask your realtor questions. Being informed is always a good idea, especially in a transitional market as all experts are examining factors like interest rates, vacancy rates, employment rates, real estate housing reports etc. for insight as to how the housing market will respond. Niche markets like the luxury real estate market will also have studies that hone in on their specific target market and neighborhoods. Our Forest Hill Yorkville team keeps their finger on the pulse of current trends and forecasts, particularly in the luxury market. Knowledge is power. Give us a call!
Forest Hill Yorkville welcomes you to swing by our offices at 28A Hazelton to chat with us about buying or selling in Toronto’s transitional market. You can also call us toll free at 1-844-228-5588 or email us at firstname.lastname@example.org!