As with anything in life, a little careful preparation beforehand can go a long way in determining success. Whether it is checking traffic online before leaving for a trip or doing your own consumer research before making a big purchase, planning is essential to success. 

It is really no different when it comes to real estate. However, we often associate planning and strategizing with the selling part, but it is equally important for buyers. 

In today’s market, as a buyer who wants to upgrade, it’s time to be selective, and as much as there is a shortage of inventory, good properties are still commanding top prices and don’t not be afraid to negotiate on properties that have been listed for 30 or more days.

It is more advantageous to take a step back, plan your moves in advance and execute a flawless buying strategy that results in finding a home you love at a fair price. 

How do you get started?

Have you read our Seven Step Guide for buying a home in Toronto? You can download it right here.

Budget Wisely 

One of the most significant determining factors when it comes to finding a home to purchase is the price. Not only will your financial advisors be quick to tell you what you can afford, but you should also have a good understanding of what is in your comfort range. 

Many financial experts advise keeping your monthly household expenses (including mortgage and insurance fees) to at most 30% of your monthly income. However, this could be offset by investments and other factors. 

Before meeting with a real estate agent to start the home search process, it is important to define your expectations in terms of budget. What are the minimum amount and maximum amounts you are willing to pay.

Knowing this ahead of time will help your real estate advisor curate listings for you that not only appeal to your lifestyle and aesthetic but also your pocketbook. 

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Are you thinking about making real estate moves this year? Read some of our related content here:

• 2022 Luxury Real Estate Market Outlook
• The Luxury Real Estate Market Has Changed in the Past 20 Years
• Are You Ready for a Major Real Estate Investment?
• Is It Better to Buy or Sell First?

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Consider Your Stage of Life and Interests

Do you love dining out every weekend or window shopping on York Street? Perhaps an isolated family estate is not a good choice for you. Do you value privacy, peace, and quiet? Then perhaps a condo in the middle of the Financial District is a big no. 

It might sound obvious, but carefully defining and understanding your current life stage and interests–and writing them down on paper–can help you make better decisions when you find yourself in a grey area. 

It is understandable, sometimes the heart wants what the brain cannot comprehend. Write down your interests, your favourite things to do, your favourite areas, and your favourite establishments to frequent. That way, you can better understand the type of property that would suit your life. 

Rank Your Preferred Property Features

In real estate, we discuss “wants” and “needs.” They are two very different things. For example, you might want a home gym, but you need three bedrooms for your children. You might want a lakeshore view but you might need space to park your car. 

Buying a home can be incredibly fun. Daydreaming and planning for the future and thinking about all the incredible new features you can pack into your new home. But the reality is that the perfect home does not always exist. In many cases, buyers need to make a few compromises. 

By defining your definite needs and your “nice-to-haves” you can go into the home search process with a realistic outlook. It will also help your real estate advisor find a home that suits your needs and hopefully features a few of your wants too. 

Be Prepared to Walk Away

In today’s hectic market, many properties are going into multiple offer situations and then eventually bidding wars. However, as you are probably aware, a bidding war is certainly not designed to help the buyer get the best result. In most cases, bidders are bidding over the asking price and even, in some cases, significantly more than the actual value of the house. 

In these instances, it is critical that you know when to walk away. There is a definite point when an existing bidding war turns sour and the price you would need to pay in order to win is simply not worth it. 

Knowing at what point you are willing to walk away is critical. It makes you a more confident buyer and ensures that you are not trapped in a bidding war where you could eventually overpay. 

Your real estate advisor can also help in this regard by sharing their experience and expertise on whether a property in a bidding war is truly worth it or if there are better opportunities to explore elsewhere. 

Whether you are planning to buy your first home this year or make a move up the property ladder, strategic buying is critical to your success. Contact us today to get started. You can also read our Seven Step Guide to Buying a Home in Toronto here.