Posted in The madness of the GTA real estate market has finally hit the Quinte area (Belleville/Trenton). Buyers, having been priced out of the outer rings of the GTA (Oshawa, Clarington, Cobourg) buyers now seem to be descending on our area in droves and driving up prices (RAPIDLY). Most move-in ready houses have experienced multiple offer situations, with properties now routinely selling for over asking price.
Unfortunately local agents are not used to this, and are providing really bad advice to their clients. Ultimately, regardless of what your agent will tell you, the accepted offer on a property will be the one with the highest price and most convenient closing date. Going in without conditions of home inspection and financing (unless you are literally paying cash) quite simply is irresponsible. Even if you have been pre-approved, this DOES NOT MEAN CMHC or any lender has had a change to evaluate the property you are purchasing (for condition), or potentially value the property (via an apraisal) to make sure the property is worth what you are paying.
In the last 3 weeks, I have had 4 clients make unconditional offers on properties (2 of which I had preapproved but had advised against it). In one case, the valuation on the property came in $10,000 low (forcing the client to come up with additional down payment), while in another case (someone I hadn't preapproved), quite simply their credit was horrible (2nd percentile out of all Canadians!). This left use scrambling to help the client neogitate settlements/pay out collections, and forced them to accept a high interest 1st (5.9%) and an much higher interest rate 2nd (15% - YIKES!) to close the deal to avoid getting sued.
The moral of the story? A house will likely be the biggest purchase decision of your lifetime - you wouldn't purchase a car without taking a test drive, or buy a new sofa without sitting on it to see if it was comfortable, so why would you ever think it was a good idea to spend six figures without doing the same due diligence? Quite simply it isn't!
If you are looking for honest advice (and a great rate) on how to make your purchase a success, please give me a call at (613)394-5810 or send me an email!
#financingcondition #homeinspection #quinterealestate #hotmarket
