To say that the real estate market in Toronto has been “interesting” for the last couple of years would be an understatement. Every type of home is in high demand, with more people than ever looking to buy. Even condos are in short supply. According to the Toronto Regional Real Estate Board, last month was the second busiest February in history. The inventory for new homes, including condos, remains exceptionally low. Any new listing on the market gets snapped up quickly.
What does this mean if you want to sell?
The demand for condos is causing a surge in prices. Different units within the same building can increase by thousands of dollars within a few weeks, or even a few days. This competition puts you in an excellent position to sell your condo, for likely way more than you paid for it.
The complication arises when you look to get back into the market elsewhere in Toronto.
With things moving as fast as they are, it pays to look before you leap.
You’ll need to do your research and be prepared to act quickly when an opportunity arises.
Be Prepared
Because competition is so high, you can count on most listings getting multiple offers. A little preparation now will help you make a compelling offer and hopefully avoid getting into an aggressive bidding war.
If possible, try to have your deposit ready without depending on the equity in your home. Why is this important? If a seller accepts your offer, they usually expect a deposit on the purchase within 24 hours. The faster you can access these funds, the more likely you will secure your new home.
If you can’t come up with a cash deposit, be sure to analyze your finances thoroughly before moving on. Find out how much equity you have and how much your unit is worth now. Knowing your budget can help you zero in on what to look for in your next home so you can jump when you have an opportunity to buy.
Before you start placing offers, get a pre-qualification to determine how much you can get approved for a mortgage. Getting pre-qualified helps you stand out against competing buyers. When your offer isn’t conditional on financing, a seller is more likely to accept you over someone who hasn’t taken this step.
Thinking of selling? Here are some other guidelines to help you make the most of your sale in this market:
- Buyers Are Going Crazy For These Home Features
- Will Rising Interest Rates Cool The Hot Seller’s Market?
- Should You Buy or Sell First in Toronto in 2022
Research the Market
Why do you want to move in the first place? Are you looking for more space, a new neighbourhood or both?
When upgrading from your condo, you can look at detached homes, semi-detached or townhouses. Each option comes with advantages and disadvantages.
Detached Homes
Detached homes tend to be larger, providing more living space and are the most likely to have a driveway (a rare commodity in Toronto.) Plus, you have extra bedrooms and a backyard for kids to play in and entertain your friends. You get more privacy and freedom to renovate and customize the home to your personal tastes. All of these luxuries come with a price. This year, the average cost for a detached house in Toronto hit over $2M!
A detached home also can mean more yardwork and maintenance tasks.
A Semi-Detached House
If you want more space and privacy but are put off by the steep price of a detached home, a semi-detached house may be the way to go. They are slightly less expensive, plus you can often share the maintenance duties and costs with your neighbour. Many semi-detached homes will still have a driveway and offer outdoor living space.
On the downside, semi-detached units are smaller than detached homes. And the shared wall can mean more noise and less privacy, especially if you or your neighbour have pets or children. You will also have less freedom to renovate your home, with no possibility of building a secondary suite to collect rental income.
Townhouses
When upgrading from your condo, townhouses are your least expensive option. You’ll have more space, and little to no maintenance to worry about.
The drawbacks are you have shared walls on all sides unless you’re lucky enough to snag an end unit. You may still have a yard, but it will be much smaller than a detached home or semi. Some townhouses still require condo fees, so it’s important to research before placing your offer.
What Neighbourhood is Right for Your Family?
The West End consists of more than 30 individual neighbourhoods. It’s all part of Toronto, but each has its own character and attractions.
For example, Bloor West Village is known for its old-time charm, quaint shops, fantastic fruit markets and tree-lined streets.
High Park is famous for its breathtaking greenery and cherry blossom trees that bloom every spring.
Curious about the West End? You can find more details on the top neighbourhoods here.
Ready to sell your home? Here are five reasons to consider selling with us.
The Sidorova Inwood Team would like to invite you to the 2022 National Home Show. Canada’s largest home show offers more than 300 home specialists to provide expert advice, solutions and inspiration for decorating, renovating and landscaping your home.
We are offering 2 complimentary VIP Tickets to the upcoming show, taking place April 15th to April 24th.
Your VIP All-Access Tickets Include:
- Exclusive RE/MAX VIP entrance and Complimentary Coat Check
- Front row seating at the Celebrity Stage
- Front-of-the-Line access to the Dream Home
- Reserved RE/MAX VIP lounge
Please contact us here for more information.
