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Posts tagged with: buyers

Mississauga Real Estate: 2012 Retrospective.

January 12, 2013 - Updated: April 18, 2014Real Estate Market

Looking back at Mississauga real estate 2012

     I remember going to a particular offer presentation sometime last January.  I was wearing my best suit and had the offer in hand; I was ready to make my presentation.  I meet briefly with the seller’s real estate agent, he greets me and then softly apologies that there would be a fifth agent who will also be making an offer that night.  Little did I know at that time how often I would find myself in a multiple bid situations.  This is how I remember the first half of 2012. Buyers were in a frenzy to beat rising interest rates and because it was the winter season inventory was small as sellers prefer to wait until the spring to list.  I couldn't go to make an offer without at least one other person bidding against me.  It got so bad that sometimes the day a house was put on sale it would have multiple offers by noon.

"The challenge has been a lack of inventory. Many listings have attracted multiple interested buyers. Strong competition has led to annual rates of price growth well above the long-term average.” Toronto Real Estate Board President Richard Silver.

Source: http://www.torontorealestateboard.com/market_news/market_watch/2012/Q1/index.htm

    If buyers were spurred on by low mortgage rates, they were certainly much more cautious in the second half of the year to buy Mississauga real estate.  The federal government was hinting of increasing the lending rate early in 2012, but instead decided to leave it alone for the time being.  Instead, they made changes to the mortgage qualifying rules effectively making it more challenging to qualify.  Still, Mississauga real estatesales were still strong through to September.  No there were not many multiple offer situations as in the first half of the year, but buyers were still paying 97% of the asking price on average and prices were still going up.  The new mortgage rules in combination of the unfair land transfer tax in Toronto helped to channel more clients to buy real estate in Mississauga.  Once again, strong demand caused an upwards pressure on prices to continue.

"While sales have been lower due to stricter mortgage lending guidelines, we continue to see substantial competition between buyers. The months of inventory trend remains low from a historic perspective, which explains the strong price increases we are experiencing,” said Toronto Real Estate Board (TREB) President Ann Hannah.

Source: http://www.torontorealestateboard.com/market_news/market_watch/2012/Q3/index.htm

    The last part of the year in my experience was answering buyers question if the market was going to drop?  Despite restrictive mortgage controls and the general sentiment of buyersthe restate market will see a price drop; numbers for the final quarter are now in showing increase in prices from 2011.  The month of December alone saw price increase over the previous year by 3% despite number of sales being lower.  Overall, prices are up by 8% with an average price of $456,027 for all types of residential properties.  2012 will go done as a strong year for Mississauga real estate in terms of sales.  There were 9,805 total sales worth a dollar value of $4,471,339,897.

By Todd Lee

Tagged with: mississauga real estate todd lee buyers

The secret to getting the best deal from new construction builders

June 23, 2012 - Updated: January 23, 2013Buying Real Estate

    If you’ve purchased from a new home or condo builder before, perhaps your experience went a little bit like this.  Some need arose from a change in life.  Maybe you graduated school and wanted to live near work, or you wanted to build that nest for the family you were planning for.  You saw a new construction sales centre or the giant sign while you were driving and decided to drop in to see what the prices were like.  As you walk into the grand entrance you were greeted by a receptionist.  She asked you if you have ever been to the sales office before and you replied no.  You’re given a form to fill out your name and contact information.  At this point you’ve already passed the point of no return and you will not get the best deal.  That’s right, filling out that information card cost you thousands of dollars because you just became the builder’s client.

    That story is played out every day of the week.  People are not just losing money, they missing out on the best floor plans and certainly are not working with sales people who have the best interest in mind for you the buyer.  What you are about to read is not really earth quaking news.  But, it’s something so simple people just don’t think about it.  Before you decide to visit a new home or condo construction sales office or fill out a registrant’s form online, you should enlist the service of a Real Estate Representative.

    This is the first and most important point.  The pre-construction sales staffs are trying to meet quotas and their loyalties lie with the builder, their employer. The Real Estate Representative you hire will work for you and have your best interests in mind. If there is a better situation for you elsewhere your representative has no problems showing you alternatives.  Also, if you have any questions about the project or status of the build you will have the Representatives direct phone number to contact any time.  If you want to contact the pre-construction sales office you will have to call during the office hours of operation which can be limiting.  In the end Ontario Real Estate Representatives follow a code and answer to the governing body called RECO should there be any violations.  You the client are always the number one priority.

    The pre-construction salespersons are focused on selling only what that builder trains them for.  When you hire a Real Estate Representative you have the advantage of that person’s real estate education, expertise and experience.   Because Real Estate Sales Representatives use MLS system every day they know the real estate market and can show you similar properties for comparison purposes.  Using their understanding of pre-construction the representative will help you understand the purchase agreements and can ask pertinent questions such as assignments, construction financing and occupancy.  If you are going to sell the property before you take possession, your Representative can help you find a buyer as the builder limits the ways you might advertise. 

    Real Estate Representatives are invited to VIP sales events by the builder because of their reputation.  At these events your Representative will have access to the best floor plans, discounts and special deals that WILL NOT BE OFFERED later on when the builder releases to the general public.  This can save the buyer thousands of dollars and allow them the advantage of picking the best property before anyone else can.  During the general release, prices are not negotiable. However, your Representative knows the fees that can be waived and negotiate on your behalf.  The final way you save money is simple…for all the great things a Real Estate Representative gives to you the buyer, you don’t pay them a single cent!  That’s right.  The Representative gets compensated by the builder and not by you the buyer.

    In summary, never go to the sales office without representation or register online.  If you do this your Real Estate Representative cannot help you. Having the assistance of the Real Estate Professional gives you the advantage of having someone in your corner when dealing with the builder and also helping you find the right property while educating you about your options in the market.  Finally, your Representative can help you get the best deals through special promotions and knowing what to negotiate out of the purchase price.  Should you be actively looking to buy Pre-Construction homes or condos in Mississauga or Brampton please contact me at info@toddlee.ca, and I will be happy to assist you.

Written by Todd Lee

Posted on 23/06/2012

Tagged with: mississauga condo todd lee buy pre-construction mississauga brampton condo best deal buyers

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