What's Most Important For You... Price Location Or Condition?

By: Thomas Cook

What's Most Important For You... Price Location Or Condition?

There are only three prime determinations for real estate value - price, location and condition. 
 
When you’re beginning to consider buying a home, one of the first things to find out is how much you can afford to pay.  For most people this involves going to a bank or mortgage broker to get pre-qualified for a mortgage.  Sometimes you might be approved for a larger mortgage than you feel comfortable taking on.  That’s OK.  At least you know clearly what your upper limit is.
 
Knowing the price you can pay will determine, to some degree, the geographic locations you can consider when buying and the interior condition of the home.  For example if you can only afford to pay $350,000 for a two-bedroom condominium, you won’t be able to purchase downtown but there may be options farther out either east or west.  Similarly if you want a detached house in the east end south of the Danforth but can only pay $650,000 the result is the same.  You’ll have to settle for that type of home farther east or go west to some parts of Mississauga.
 
There is a saying in real estate to always buy the worst house on the best street and you won’t go wrong.  This really applies to the condition of the home that you’ll accept going in.
 
Many buyers today won’t consider a home that needs fix-ups, even if those repairs may be cosmetic in nature.  There are three reasons for this.  The first is people often can’t ‘see thru the dust’ as the saying goes and can’t imagine what they could do and what the result might be after the light work is done.  Secondly, with both spouses or partners working, and perhaps with children, there may just be no time available or they’re not handy enough to do any fix-ups.  And finally, with singles or families scraping their bank account for their down payment plus closing costs, there might not be any funds left to do any work other than some painting.
 
As a result, homes that need some work usually sit on the market for a little longer than the normal.  If you can, with the help of family or friends, see your way to buying a home that should have some cosmetic work done to it, there may be opportunities to purchase a home in a more upscale neighbourhood than you might otherwise be able to buy.
 
There are two excellent ways for you to get started with your home search.  Our HOMEWatch Program will send you listings from specific, or a variety of neighbourhoods, and for a range of listing prices so you can start getting educated about what you can get for the money.
 
Another alternative is to meet early on in the process for a 30-45 minute Buyer Planning Session.  There you’ll get a feeling for how much you can afford to pay, you’ll do some listing searches online for the neighbourhoods you like best and you’ll get a feel for how the home buying process works.  You will walk out with a specific plan for what you need to do next to take you towards your home buying goal.
 
Thomas Cook
Thomas@LivingInToronto.com
647-962-1650


Keep Up To Date With Toronto's Real Estate Market
 
Every month we communicate with our readers to give them accurate insights and statistics about what's happening in the Toronto and GTA real estate markets.
 
Subscribe to our free monthly FYI Newsletter HERE.


 

Here are 5 proven ways to move safely and smartly towards your real estate buying goal...

  1. Download a free copy of my Ultimate Home Buyer’s Guide book
Find out everything you need to know about buying a Toronto house or condominium. Instead of randomly searching all over the internet, jump start your home buying experience and get a wealth of expertise and experience in one place.

Download your Guide here
 
  1. Get a custom listings search set up for you and receive targeted listings daily
If this list is not specific enough for you, we can put together a custom list of homes.  Maybe you want only 2-bedroom condos in specific neighbourhoods, or only semi-detached houses, or even a certain school zone. 
 
We can set up your HOMEWatch search for any area you choose (not just downtown Toronto), and you'll get immediate access to homes within minutes of them being listed.  Just leave some search criteria here
 
  1. Set up a step-by-step plan with the best ways to get to your home buying goal
At the beginning of the home buying journey, often the picture of what the end result might look like is a little ‘fuzzy’.
 
Our first-time and move-up buyers have told us that being able to meet with us on a casual basis as early in the process as possible, even if their purchase date was 6-12 months away, really worked the best for them.

To arrange your no-obligation Starbucks Strategy Session, click here.
 
  1. Join us for a Market Experience Tour - pick your favourite neighbourhoods and price range
Start getting educated about what your condo likes and dislikes are. 
 
The Market Experience Tour is a great way for you to figure out which neighbourhoods and condo buildings are right for you, and you’ll also get a good sense of what’s available in your price range.
 
Pick the date and time you like to go on your Tour.
 
  1. Don’t start your home buying experience on the wrong foot - Meet for a Buyer Consultation first!!
Home buyers have come to us after trying to work with another agent saying “I don’t think he even knows exactly what I’m looking for and I’ve got questions he doesn’t have the answers to”.
 
Don’t make the same mistake.  Let’s set a time to meet and go over how the complete home buying process works, find out what your likes and dislikes are and what pitfalls you’ll want to avoid, before you seriously start looking for a house or condominium.
 
This is the best 90 minutes of time you’ll ever spend - set up your private Buyer Consultation.