Getting a great deal in today’s real estate market: Focus on Value
In today's hot real estate market, buyers often ask me how to get the best real estate deals in Toronto. While Power of Sales & Foreclosures may be one way to find a deal – I usually advise my clients to focus on finding value – as you will usually be further ahead in the long run.
The Problem with Foreclosures & Power of Sale
Many people believe that properties offered as Power of Sale or Foreclosure are your best bet for finding great deals in real estate. As an experienced realtor, I can tell you that as property prices rise in a healthy market – sometimes these “bargain deals” can be more trouble then they are worth. Remember that bank sale properties are usually sold in As-Is condition – without any warranty or guarantee from the seller. Issues can include general condition, structural issues, grow house usage and/or title problems.
As the Greater Toronto Area is experiencing a surge in real estate prices and volumes, often under-priced homes sell for well above the asking price - with multiple offers. Likewise, Foreclosures and Power of Sales usually have lots of competition because so many people are targeting these properties. Since these homes are sold in “As-Is Condition,” it can be difficult to determine what is, in fact, a true bargain. With the help of your real estate agent, do a thorough analysis on any home you're thinking of purchasing to determine the value vs. price.
If you are willing to take the risk, you may be rewarded – but it is often not as easy as it seems. Buyers can discover that in a hot market, considering the best overall value for a home can often lead to better results than focusing in finding that killer deal. The key is to find the best home that meets your needs and is available at a reasonable price – then leverage your agent to negotiate the best possible terms of the deal. We will consider these aspects of home buying over the course of the next few blogs.
Buy a Toronto home when your circumstances dictate, and buy based on value. As your Toronto Realtor®, I am eager to find you an AWESOME deal based on your needs. I want you to get the best value on your home - even in our hot market. Please check out the details of my Awesome Asim VIP Home Buying Program on my website.