Let's face it. We all love a great deal...and when you're a Vaughan home buyer...well it just makes you happy.
So how do you get a good deal? First and foremost is timing. The Vaughan real estate market has shifted as we already know but this buying opportunity won't last long. This is the time to capitalize and not sit on the side lines. Vaughan home buyers rejoice!
The real estate market has recently shifted from a super strong seller's market to a more moderate balanced market with much more inventory to choose from and almost no bidding wars. What's important to now realize, is that there were a lot of buyer's who bought their homes at the peak of the market in the first few months of 2017. They bought their home first because there wasn't much inventory to choose from and they wanted to make sure they had a place to go once they sold their home (and selling a house WAS easy...right?)
Then came the shift in the market. All of a sudden, those same home buyers who bought at the peak, have to sell their home. This has created a rare opportunity. We now have very motivated sellers that MUST ABSOLUTELY sell their home in order not to default on the purchase of their home and lose their deposits and risk being sued. I recently spoke about this to the Globe and Mail.
How do Vaughan Home Buyers get a great deal?
There are a few tell-tale signs I look for. Many of these signs are through conversations with other agents. This actually happens quite a bit. There are agents who wear their heart on their sleeve and spill the beans a little too easily. In those conversation, they may inadvertently release information they should have held closer to their chest. This happens a lot and this is CRUCIAL information to have as a Vaughan home buyer. This is one of the information sources I can use for the benefit of my clients. But what else do I look for?
I've been data-mining our MLS system for opportunities for my clients...here's what I look for to find motivated sellers:
- High Days on Market (DOM): As you may already know, homes that sit on the market for a longer time have been known to sell for less.
- Homes offering a bonus to the buyer's agent if the home is sold for by a specific date. Vendors typically agree to pay half the fees for marketing their home to the agent that finds a buyer for their home. BUT there are a few agents who have been offering a "bonus" on top of that if the property is sold by a certain date.
- Homes that have a specific date in the possession field. The possession of a home from the buyer is usually negotiable. This is the closing date or when you get the keys to your new home. The field typically shows something along the lines of "60-90 days". If that field instead states "Sept 13, 2017"...well that might be an opportunity.
- Homes that have had several price reductions. As vendors realize they're not going to sell their home for the price they would have at the beginning of the year, they're often only left with one option...reducing the price.
- Homes that have been re-listed several times. Many agent's relist a property for sale rather than simply reducing the price. It more or less has the same effect..the price is now lower, but...to a buyer who sees the house for the first time, they might think it's a new listing not one that's been sitting on the market for a long time.
The good deals are out to be had and they won't last long. In other words...there's a sale on homes and the sale will end soon. START THE CAR! Now is the time to act, don't sit on the sidelines and wait for it to drop further. The housing industry in Vaughan (and the rest of the GTA) is strong and will continue to be strong. Don't take my word for it though, Warren Buffet just invested into embattled mortgage lender Home Capital Group. He recognized the opportunity and acted on it.