Toronto is a tight seller’s market and has been since at least 2010. Seller markets mean that demand is higher than supply. There are more buyers than there are sellers, and that gives the sellers power. Buyers need to enter into bidding wars to purchase properties. Since the beginning of COVID, many towns around the GTA have also become seller markets. But, the situation for buyers is not hopeless. Here are our five tips for buying in a seller’s market.

  1. Don’t wait it out: Sometimes, buyers feel like if they just wait until next year, the market conditions will change. A market change in the near future is improbable. Even if interest rates go up (the main argument for waiting for the market out) and prices start to go down slightly, your monthly payments will likely remain the same, but you’ll be paying more in interest rather than more in principle.

  2. Money talks: Buyers and agents can sometimes get caught up in the game of making offers. There are no secrets to success in this market, and there are no hidden “deals.” The only way to achieve buying a house in a seller’s market is to offer the most amount of money.

  3. You’re not overpaying: Buyers can often feel like they massively overpaid on their home. This is because to win an offer, you need to offer a large amount of money. However, we have worked with enough sellers in this market to know that sellers ALWAYS wanted more money from you. Buyers always worry that they overpaid, and sellers always fear that they could have made more.

  4. Offer quickly: In this market, time is everything. Be prepared to view houses the day they come out and then offer on them shortly after that. If you’re not making a bully offer, someone else will.

  5. Everything is temporary!: Yes, today you’re a buyer. But you know what you could be tomorrow? A homeowner! And a future seller! The goal is to buy a house to move into the next stage of your life. The market will continue to go up, and you will be eternally grateful that you have a home to live in from which you can watch your equity grow.

We have helped hundreds of buyers find their next home. Let us know if we can help you too.

As always, stay safe

Robyn VanderVennen
The Kim Kehoe Team