What Buyers REALTORS® should fire in the GTA!
Yeah, I know, you’re thinking- get off your high horse Jas! But seriously, why would you write a blog on “What Buyers REALTORS® should fire?”
Well if you have been working with Buyers in the Toronto real estate market and are getting your feet dirty, I think after reading this, you will agree with my thinking.
It doesn’t matter if you are working with a Buyer looking for a house or a condo. However, my blog relates mostly to First-time and those smarty ass Buyers!
7 Things Buyers must have to be successful bidding in Toronto’s real estate market!
- A Huge Deposit, I mean Huge! Not 5%… ideally 20%!
- A Mortgage Approval. Not a pre-approval! An Approval that is stamped, sealed and delivered.
- Flexibility. To view properties at anytime. In the morning, afternoon and evening. Not just the weekends!
- Make Fast decisions! Can’t wait until tomorrow, the weekend, to show parents, brothers and sisters, aunts and uncles. They need to make a decision right when they see the property.
- Make Firm Offers. If the offer is conditional on financing and inspection and status certificate. Then agents haven’t done necessary prep work ahead of time and Buyers are weak.
- Pay higher than asking! If you have a smarty ass Buyer, wanting to low ball an offer when they are competing in multiple offers… fire them immediately!
- Compete in Multiple offers. If Buyer don’t want to compete or aren’t serious about placing a competitive offer when they do, fire them. Any offer, in competition, only helps the Seller get more money for their property. How? Read my blog- Buyers get out of the real estate market.
I hate this market just as much as my fellow REALTORS® and their Buyers. I’d welcome a balanced real estate market, without the insane multiple offers, but we all know that ain’t happening anytime soon.
Prices are clearly out of whack! For example, a similar unit within the same condo now sells for $20-$50,000 more in just a few weeks. Recently a condos listed at $289K, decorated with 1980s wallpaper, and never upgraded, nearly $1000 monthly maintenance fees, sold for $350K without any rhyme or reason. Every day, condos are selling firm, the same day, without Sellers having to issue a status certificate.
Getting back to What Buyers REALTORS® should fire! Or at least “let go” nicely!
Buyers with a small deposit. Like 5%. Most listings sell for over asking, in multiple offers and you need Buyers that can cover the difference between the appraisal value and sold price. Our duty is never to put them in such a predicament that they unknowingly harm themselves. We know better. As professionals politely tell them to save more or arrange a gift from family.
Smarty ass Buyers. These are the ones who think they know more than you. They don’t listen to reason and your experience. They tell you their friends or family members bought a unit but a few months ago in the same building and want to put an offer with the same price.
For example, family member bought for $460K. Current listing price is $500K. There are multiple offers and they ask you to offer $460K. Even though you explain the current market conditions and they agree to your logic, they still insist low balling an offer. Fire them ASAP! If you like you may put 1 offer to show them current reality, however, if they repeat this illogical behaviour, to low ball offers, fire them.
Buyers who won’t get financing approved. We’ve dealt with them, saying there good for financing, but want to put a financing condition in the offer. If you can’t go firm, ditch them.
Buyers who can’t make a decision and need to talk to “many” people. There is no time for that in this market place.
Buyers who can only see properties on the weekend. With these Buyers, you may get lucky, but chances are you’ll waste a lot of time and they’ll lose out on most listings that are listed during the week. Yes, I realize we have offer dates on many listings, however many of those dates aren’t being honoured!
I’m sure REALTORS® can think of many other scenarios where Buyers should be legitimately fired. If you are a REALTOR®, and want to save a lot of headache, time and expenses, being selective with Buyers in this market is the only way to go. The chances of you being successful in any Buyer transaction where there are 10 offers with unqualified, uncooperative, unfriendly, etc. Buyers…. is Zero!
Save your Time and Money. Spend it with family and your children. Don’t put offers below market value and help push up these insane prices anymore.
Are you a Buyer in the Market place? Don’t agree with my assessment, call/ email or text me and let me know why. I’m all ears. No B.S. from me.
Cheers, Jas Jagpal, Broker, CNE, ASA
Stay tuned to my next blog: Why some Buyers should consider Buying a pre-construction Condo instead!