5 tips for buying a condo in a competitive market
5 tips for buying a condo in a competitive market
- Get a pre-approval: As first time condo buyer or experienced investor, it is always recommended to start with a pre-approval with your financial institution. This makes the process faster for everyone: the buyer, the seller and the realtor. We could then determine how much is your max budget and also how much will you expect on a monthly basis. Being pre-approved does not mean to have a mortgage right away, it only gives us a rough idea of how much we could get. This is a big advantage in a hot market and could make the difference in a bidding war situation.
- Set up an automatic alert: Being proactive in a competitive market means being able to identify the the opportunity before others do. Setting up an alert with your broker will both educate you as first time home buyer and help you visit the property before others potential buyers.
- Explore interest rates: With government rules that nobody can prevent and interest rates that fluctuate, we recommend our buyers to shop mortgage with 2-3 financial institutions or mortgage brokers. Do not only consult 1 institution unless you have a great relationship with them that assures you you will get financing with the best conditions. A small 1% difference could make a difference in 500,000 mortgage value and in saving interest over the 25-30 years.
- Be flexible: In a hot and competitive market, it happens that buyers are less exigeant in shopping for their property, meaning able to go for some renovations or pre-constructions offers. Register in our mailing list to get infos and pricing on new condos in Toronto and Montreal.
- Work with a realtor: Analyzing the market, making comparative analysis, negotiate with selling agent or developer or avoid potential risk with status certificate or unknown builder. An experienced realtor can make the difference in your purchasing/investing experience.
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