There are 33,000 real estate agents in Toronto vying for your business and some of them will go to great lengths to tell you what you want to hear to win your business. That’s not our style. Our no-BS rule means we’ll tell you what others won’t. In the short-term, it’s certainly cost us some clients. But that’s OK – we aren’t in the business of real estate just for the short-term.
7 Truths Buyers and Sellers Don’t Want to Hear:
- Your house isn’t worth what you think it is. House prices aren’t determined by how much you want for your house, or how much you need to cover the money you put into repairs and renos, or how much that Realtor thinks it’s worth. The market decides how much a home is worth based on what nearby homes have sold for and by how much competition is on the market. Everyday, people list their house with the agent who says their house is worth the most amount of money – and then it sits on the market. Not to toot our own horn, but when we don’t get a listing because a Seller think our price is too low, well, we’ve been yet to be proven wrong (toot, toot).
- Your renos aren’t worth what you think they are. HGTV has made everyone think they can get 100%+ back on the money they put into their house. I hate to break it to you all, but that’s generally NOT true. And if you took out a bedroom or bathroom, you may have actually taken value out of your home. Ouch, I know that hurt to hear. Most of the increases we’ve seen in prices are NOT because of renos – they’re because the supply of houses in Toronto doesn’t meet the demand for houses.
- You can’t afford to buy what you want. Buyers have wants and they have needs. They also have something called a budget, and sometimes (many times), it all doesn’t align. Almost all Buyers have to make compromises when buying a home – from location to size to finishes to price.
- Maybe you should wait to buy. In this day of super-low interest rates, we get a lot of calls and e-mails from would-be first time buyers. They’ve managed to save a few thousand dollars. They’ve usually just started a new job that came with a bigger paycheque. And the nice people at the bank told them they could buy a home and it would be cheaper than renting. But $250,000 isn’t going to buy you much downtown. And bigger down payments go a long way in the long run. And sometimes, it isn’t cheaper to buy than to rent.
- You aren’t ready for a house. Houses are a lot of work – and old Toronto houses can be painful to own (click here if you missed 10 Things to Know about Old Toronto Houses). House ownership isn’t for everyone and many Buyers should stick to condos and townhouses. See 5 Signs You aren’t Ready to Own a House for the deets.
- We can’t actually predict the future. Oh how I wish we knew with certainty what was going to happen with interest rates, government regulation, supply, demand, prices and the world economy – we’d be living on a private island in the Caribbean if we did. Here’s what we do know: the statistics, the economic climate, the current state of Toronto’s real estate market and the 101 different boom and bust predictions. More importantly, we know ways to protect yourself no matter what happens, and we know how to help you assess your level of risk.
So you see, sometimes the truth hurts. But you need to hear it.
And while we’re at it: those pants ARE too tight; your dog really does smell bad and that guy you’re dating is obnoxious. There, we said it.