What a Buyer Needs to know in Toronto Housing Market before offering.

Initial Homework with your Agent:

Sample of Questions I’d think you would want to know some answers too.

What have comps sold for in area?
Is this a typical or atypical house for the area?
Has this house been marketed before?
What is the lot size relative to comps?
Is their new construction in the area and with that can we gage what portion of price is going to “lot value”?
What is maximum built out permitted by city on this house should you decide to renovate down the road?
How many days has house been marketed and hence motivation of Seller?
How many days was this house on the market the last time it sold?
Have the Sellers completed a pre home inspection? What company did it? What were the results?
From a layman perspective, are there any blatant defects to note? Windows in rough repair, ceiling cracks beyond settling cracks, is there water gathered/pooled in the yard and not in neighbors?
What’s the age of the house? If mechanics are new…who did them? Was it the owner or a certified electrician?
What’s the parking situation? (more to come on parking. There’s actually a bit to know on this topic).


Here’s an interesting story: Don’t try to be too smart!
I had a client who decided to go their own way and buy through the listing agent b/c it was day 1 of the listing and the Buyer thought they’d get a great deal doing this fast and with the one agent. They bought the house. Only thing is….this was the 5th listing in a row over a few years and the market price didn’t reflect 2 very important elements 1) market value in current market and 2) insider knowledge many agent’s had that Sellers were uncomfortable dropping list price as they didn’t want to appear desperate, but that they were “very flexible” on the price. My old Buyers paid close to full pop and did very poorly. Again, know the market and be clear what the “best deal” really means!

My estimation is that I would have saved them in excess of 50k on this purchase if they had let me negotiate it. Story sound extreme?

It doesn’t happen every day but agents in the field often have similar stories to share!!

http://www.TheSmithsBuyAHouse.com