Where the Early 2018 Opportunity Lies….
What do you think is more expensive…. Buying your fruit when they are off-loading it from the truck..? Or buying it from the vendor at the market….?
Ill be the first to admit that I told my buyers that 2018 would start slow with new mortgage regulations… Boy, was I ever wrong!
The downtown market has gotten on the move quicker than anyone expected. The only logical answer to this frenzy we are seeing, is that buyers are looking to get an agreement of purchase and sale accepted before their pre-approval (from 2017) expire.
This leaves me scratching my head a little… The reality of the matter is that as this frenzy infilatrates our market, it is going to create the new landscape for prices.. We saw a big swing in the market last year come April when the fair housing plan was put in place! But, this will not be the case come April (when pre-approvals from 2017 expire) because it is not that big of a segment of the market. The sale prices recorded in early 2018 will stand as true, as we progress into the year. That leaves buyers in a position, where they need enter the frenzy, but navigate in a manner where they are not in a “rush”. This can be difficult to do….
Taking note of the above trend and forecast… I’ve began acting pro-actively to contact my database of agents and let them know what my buyers need! Often times, unless you have a client looking for a specific property in a specific neighbourhood.. You dont understand how high the demand for the property is… Once you list a property on the MLS and get 20 showings in 3 hours, you get it! But without doing that, its hard to gauge buyer activity. This is where the opportunity lies!!!
Today is February 15th and all of the comps from January 2018 are kind of scary…. But there are not many! This means that if you are able to find a property in a building/neighbourhood which doesnt have a recorded 2018 sale price, then you can create your offer price based on end of 2017 market (softer market).
I’ve helped 3 clients already this year secure off market properties… Not only did they get the properties for under 2018 market value..!! They didn’t get into a multiple offer situation and they didnt have to drop everything and run to a unit within it being 1 hour on market… Which takes away the entire “frenzy factor”.
Im currently working on another off market deal for a client in a great building. I had a client last summer purchase the exact same unit 1 floor up from the one we are aiming for! So, I called my client who already purchased in the building, and asked if my “current” buyer client could kindly view his unit! He’s a great guy, and let us in last night.
Today my client and I are creating our approach of coming in well under market value and making our offer conditional on an inspection… Submitting a blind offer is very unconventional, but with inspection and status conditions in place, the buyer is well protected.
The unit we are offering on is also tenanted so the seller will be thrilled with the late 2017 price (softer market than today’s).
Well, I REALLY hope the agent Im working on this deal with doesnt read this blog, because that wouldn’t be good LOL.
Searching on MLS isnt enough when there is a gap of opportunity like we are seeing from the late 2017 to early 2018 market.
The time to take advantage is NOW before more 2018 sales are recorded.
Always happy to chat more 416-770-6971