1. Don't Get "Pre-Qualified!" Get "Pre-Approved"

Do you want to get the best condo, townhome or loft you can for the least amount of money? Then make sure you are in the strongest negotiating position possible. Price is only one bargaining chip in the negotiations, and not necessarily the most important one. Often other terms, such as the strength of the buyer or the length of closing are critical to a seller. In years past, I have always recommended that Toronto buyers get "pre-qualified" by a lender. This means that you spend a few minutes on the phone with a lender who asks you a few questions. Based on the answers, the lender pronounces you "pre-qualified" and issues a certificate that you can show to a seller. Sellers are aware that such certificates are WORTHLESS, and here's why! None of the information has been verified! Unknown problems can surface for example: recorded judgments, child support payments due, glitches on the credit report (due to any number of reasons both accurately and inaccurately), down payment funds that have not been in the clients' bank account long enough, etc. So the way to make a strong offer today is to get "pre-approved". This happens AFTER all information has been checked and verified. You are actually APPROVED for the loan and the only loose end is the appraisal on the property. This process takes anywhere from a few days to a few weeks depending on your situation. It's VERY POWERFUL and a weapon I recommend all of my Toronto area clients have in their negotiating arsenal.

2. Sell First, Then Buy

If you have a house to sell, sell it before selecting another property to buy! Let's pretend that I go out looking for the perfect loft or townhome for you. I find it and you love it! Now you have to go make an offer to the seller. You want the seller to reduce the price and wait until you sell your house. The seller figures that this is a risky deal since he might pass up a buyer who DOESN'T have to sell a house while he's waiting for you. So he says OK, he'll do the contingency but it has to be a full price offer! So you see, you paid more for the condo than you could have because of the contingency. Now you have to sell your existing house, and in a hurry! Otherwise you lose the dream loft! So to sell quickly you might take an offer that's lower than if you had more time. The bottom line is that buying before selling might cost you TENS OF THOUSANDS of dollars in the hot Toronto market. I always recommend that you sell first, and then buy. If you're concerned that there is not a property on the market for you, then go on a window-shopping trip. You can identify possible areas and locations without falling in love with a specific property. If you feel confident after that, then put your house on the market. Another tactic is to make the sale "subject to seller finding suitable housing". Adding this phrase to the listing means that WHEN YOU DO FIND A BUYER, you will have some time to find the new place. If you don't find anything to your liking, you don't have to sell your present home.

3. Play the Game of Nines

Before property hunting, make a list of nine things you want in the new place. Then make a list of the nine things you don't want. I call this "NINE OF THIS AND NONE OF THAT". You can use this list as a scorecard to rate each property that you see. The one with the biggest score wins! This helps avoid confusion and keeps things in perspective when you're comparing dozens of condos and lofts. When house hunting, keep in mind the difference between "SKIN AND BONES". The BONES are things that cannot be changed such as the location, view, the size of lot, noise in the area, school district, and floor plan. The SKIN represents easily changed surface finishes like carpet, wallpaper, color, and window coverings. Buy the condo with good BONES, because the SKIN can always be changed to match your tastes. I always recommend that you imagine each condo as if it were vacant. Consider each condo on its underlying merits, not the seller's decorating skills.

4. Don't Be Pushed Into Any Property

Your agent should show you everything available that meets your requirements. Don't make a decision on a condo until you feel that you've seen enough to pick the best one. Review the Multiple Listing printout with your agent to make sure that you are getting a COMPLETE list and a comparable price evaluation of the property.

5. Stop Calling Ads!

A word of caution - agents create ads solely to make the phone ring! Many of the condos have some drawback that's not mentioned in the ad, such as traffic noise, power lines, or litigation in the community. What's not mentioned in the ad is usually more important than what is. For this reason, I want you to be very careful when reading ads. Remember that the person writing the ad is representing the seller and not you! The most important thing you can do is having someone on your side looking out for your best interests. Your own agent will critique the property with an eye towards how well it meets your needs and will point out any drawbacks you should know about. So whether you decide to work with me or not, pick an agent you feel comfortable with and enlist the services of that agent as a buyer's broker. Then you become a client with all the rights, benefits, and privileges created by this agency relationship, and you're no longer just a shopper. Did you know that many condos are sold WITHOUT A SIGN ever going up or an AD EVER BEING PUT IN THE PAPER? These "great deals" go to those people who are committed to working with one agent. When an agent hears of a great buy, whom do you think he's going to call? His client who he has a legal obligation to work hard for, or someone who just called on the phone and said "keep your eyes open"? To get the best buy on a property, I always recommend that you hire your own agent and stick with him/her.

Buying a condominium-Who you need on your team…

Buying a home can be a long and complex process. For first-time buyers or even repeat buyers, purchasing a condominium is usually just as lengthy and complex an experience. When you buy a condo, you’re not just buying a place to live, you’re becoming part of a community.

Before you make an offer on your dream condo, Canada Mortgage and Housing Corporation (CHMC) recommends that you get some expert advice to help you navigate through the process.

• Real Estate Agent: A real estate agent who specializes in condominiums can save you time, energy and help you make an offer once you’ve found the condo that’s right for you. While you can deal with the seller’s realtor, it may be wiser to enlist an agent who will act solely on your behalf. Be specific about the type, features, location and price range you’re looking for in a condo. This will allow your agent to pre-screen properties that are within your budget, in the neighborhood where you want to live and with the features and amenities that are important to you.
• Financial Institution: Your bank manager, financial advisor or mortgage broker can help customize your mortgage to suit your financial goals and needs, and ensure you can afford your monthly mortgage payments. CHMC’s on-line interactive guide, Homebuying Step-by-Step available at www.cmbc.ca, can help you determine what price range you should be looking at and how much you can really afford.
• Real Estate Lawyer: A Lawyer who is knowledgeable about condominiums can protect your legal interest, explain all the documentation and review the purchase and sale agreements. Your lawyer will determine whether or not there are any legal actions pending against the condominium corporation. If your offer is accepted, he or she will also be responsible for many of the closing arrangements.
• To avoid any unpleasant surprises, you should also investigate the financial well-being of the condominium corporation you’ll be buying into. For resale condos, check documents such as the estoppel or status certificate as well as annual operating budgets and end-of-year financial statements. Technical audits and reserve fund studies can also offer insight on the condition of the building and the adequacy of the reserve fund to meet future major repairs and building renewal work. For new buildings, also review the full discloser statement.

10 Buyer Mistakes

Mistake #1:

Not knowing how much they can afford before they make an offer. The easiest way to avoid this mistake is to get pre-approved for a mortgage by a lender so you know in advance exactly how much you can afford.

Mistake #2:

Not realizing in advance who the real estate agent represents. Most people think that the agent they are working with is working for them. You must get buyer agency signed in order to ensure you are receiving the proper representation.

Mistake #3:
Not realizing that the wrong mortgage can cost thousands of dollars in needless interest and taxes. It is very important to understand that not all mortgages are created equal. Just going for the lowest rate can cost you $$$'s in the long run.

Mistake #4:
Not discovering hidden defects before they buy a Toronto Condo. One of the most expensive mistakes is also one of the easiest to avoid. The status certificate will ensure you are protected and disclose all the information in the condo corporation.

Mistake #5:
Not knowing how much credit can affect their ability to buy or refinance a condo. Before you buy a condo, many of the clouds on your credit history can be cleared up or even eliminated. Your mortgage professional can help you review and prepare your credit file in advance.

Mistake #6:
Not basing their asking price on market value. It is very important that you see the comparables for the property and understand that if you decide to purchase that you will be purchasing a condo at market value. Toronto's real estate market is a fast-paced environment and trying to buy a property $5000-$10,000 below market value just doesn't happen anymore.

Mistake #7:
Not having technology working for them! With my free Buyer Search, we'll help you search all listed condos for sale. Our computers match homes that meet your exact specifications. I will then email you all of the new listings. You'll know about new listings that are entered into the Multiple Listing Service (often 4 to 7 days before other buyers know about these homes - and a week or more before these homes are advertised or held open). No matter what kind of property you want, I'll find it for you!

Mistake #8:
New development!!!!!!!!!!!!!! It scares me how many people will buy new condos without an agent. Hiring a buyer agent is FREE. We are paid by the seller or the developers, so why wouldn't you want someone there to make sure your needs are being addressed? Most people don't realize that a new development contract can be changed just like a regular offer. I work with the top real estate lawyers in Toronto to ensure my clients are protected. The scary fact is most people negotiate the purchase of their used car more than they do with their new $200,000 condo. It just doesn't make sense. If you are going to buy new development make sure you hire an agent that knows how to negotiate with the developers.

Mistake #9:
Choosing the wrong agent or choosing them for the wrong reasons. You must be confident with the agent you choose to work with. My approach is that I am applying for a job to work for you. If you hire me and I don't do a good job then you fire me. But I am not in this for the single sale, my business is based upon referrals and if I want you to refer clients to me in the future then I am going to have to do a good job...right?

Mistake #10:
Not knowing all of their legal rights and obligations. Real estate law is complex. The contract that you will sign when selling your home is legally binding. Small items that are neglected in a contract can wind up costing you thousands of dollars. You need to consult a knowledgeable, professional who understands the ins and outs of a Toronto real estate transaction.

How To Beat Other Buyers To The Best New Hot Listing

I Specialize In Helping Buyers Find The Best Condos At The Lowest Prices. 

Do You Know About Every Toronto Condo For Sale?

If you're looking for a condo, you may have been calling Real Estate companies and attending open houses. You may even have some agents sending you information on some condo.

Are You Missing The "HOT" Listings?

"How do I know that I'm not missing out on the perfect house?"

"How do I know that I'm being shown everything I want to see?"

"Why are the good homes sold before I find out about them?"

If you're calling on ads and visiting open houses, you probably will miss out on the perfect condo. Nice properties, priced fairly (called "Hot Listings") usually sell quickly, often within a week.

Do You Have Computers Working For You?

With my free Buyer Search, I will help you search all listed condos for sale. My computers match condominiums, lofts, and townhomes that meet your exact specifications. I will then email you all of the new listings. You'll know about new listings that are entered into the Multiple Listing Service (often 4 to 7 days before other buyers know about these condos - and a week or more before these condos are advertised or held open). No matter what style of home you want, we'll find it for you.

Do You Decide Which Homes You Want To See - At Your Convenience?

My computers will provide you with information on every condo available meeting your specifications. You obtain all the facts you need. You see exactly what is available for sale. You tell me what properties you like. I will make private showing arrangements, at your convenience, for any Toronto property, anywhere, listed by any real estate company.

Contact me today about my buyers program and let's find you the property of your dreams!