First Time Home Buyers

What a market we are in these days! It's no wonder First Time Home Buyers are having a hard time purchasing a home when the average Toronto detached value has increased to $1.2 million. For the whole of Durham region, the average sales price for detached homes (March 2016) rose to $543,403 from $480,490 (March 2015), according to the Toronto Real Estate Board. It's not surprising more and more young couples are moving out this way. The challenge is not only are they having to compete with other First Time Home Buyers but also Second and Third Time Home Buyers. How can you compete with that? By hiring the right Real Estate Agent who will help you understand the process, pricing and value of the home. Also, having a really great down payment can give you a little more of an edge. Many Realtors are now asking for Buyers to provide confirmation of approval from their mortgage institution and even that isn't enough. Because most homes are selling for well over asking, some even in the range of $50,000 - $100,000 more than the list price, this makes it difficult for mortgage institutions to approve the sale price. Seller agents want to know if Buyers have money outside of their down payment to compensate for the difference that the bank may not approve the selling value for. What happens then? Well, you have to come up with the difference. Let's face it, most regular people do not have that extra $50,000 sitting in their bank account. You need to ensure you understand this before you decide to outbid the next Buyer. Also, working with a Realtor who is not in it to just sell another house. Someone who is invested in you and explains the risks. Home Inspection? What conditions, terms, warranties are needed? Be comfortable with the person you are putting your trust in to help you with one of the big decisions in your life.