Peter Powers, Broker - Your Resource for Luxury Real Estate Toronto

Buyer Burnout

October 1, 2013 - Updated: October 1, 2013

Buyer Burnout in a Competitive Market

 

   I have assisted buyers for quite some time (since 1988) and in a

market such as the Toronto market, bidding wars are common. This is

due to the fact that, in the most desired neighbourhoods, demand is

always higher than supply and putting a property up for sale with an

offer date is (if it can be successful done) a benefit that the listing

agent must consider providing for his seller client. However, this

creates a stressful buying environment for the buyer and quite a few

buyers, after a run in with the 'offer date' experience, end up

winded, disillusioned and consider backing away from the market.

 

   The statistic that has been appearing on government and lending

institution sites (when referring to Toronto's growth) refers to the fact

that we need 39,000 new residences annually. We will, in a stable

market, always be in a situation of demand being greater than supply.

Thus the annual increases will continue and there will be the

occasional bidding war. However, the biggest error a buyer makes is to

let this dishearten them and to 'temporarily' remove themselves from

the market.

 

   Removing yourself from the process accomplishes three destructive

things: it reinforces the pattern of letting a negative immobilize you, it

stops your growing knowledge of the market that pertains specifically

to you and it increases the cost of the real estate that you will want to

purchase when you re-enter the market ( as the annual increases will

not stop and wait for you ).

 

   My personal philosophy is that nothing that is antagonistically forced

ever has a positive outcome. You seek my assistance to

give you a clear and solid understanding of the market as it pertains to

your needs and desires. There is a fine balance in pursuing a desired

outcome with a clear understanding of the situation as opposed to an

aggressive push for a 'must have' goal. The latter will either give you

what you had to have (but at quite a cost) or it will burn you out.

 

   Let's take a moment to examine the 'dreaded' offer date scenario. The

asking price seldom has any credence in this market. It is the selling

price that matters as this is the market value. Market value is what the

buyer is willing to pay for a property that has been exposed to the

buying public for a proper length of time and which has been

purchased without any forms of duress on the seller or buyer. When

we examine that definition we do see that in a bidding war with little

supply there is duress on the buyer. The best approach is to decide on

a strategy around a price that you are willing to pay based on market

value. Those who get overly aggressive usually wake up the next day

with regrets.

 

   In most of these cases the seller may as well be asking one dollar as

the asking price is never indicative of true value. Whenever I email

you a potential property I am seldom sending it based on the price

alone. I am sending it because I believe it may be of interest to you

and it is within the perimeters we have discussed. If it is of interest

then we look at the property and begin a discussion of its true value.

This is the primary distinguishing factor of the professional approach;

my ability to assess the true value and, should you decide to make an

offer, to then further assess the situation in which we will be

submitting the offer in order to negotiate effectively on your behalf.

 

   My clear focus is to guide you through this process so that the outcome

is to your benefit on terms you can sleep with.

 

   It is my core belief that, if you wish to make a move in the real estate

market, never stop looking and never stop the deepening education

that comes as a result of the viewings, questions, answers and

discussions that come with the process. It may not be continual bliss,

but it is what is best.

 

   Ultimately, when it is meant to happen, the right house will present

itself, you will be prepared and I will secure the purchase for you.

 

   I am devoted to my responsibilities in the team that is you and I. One

of those responsibilities is to remind and encourage you to stay as

devoted as I am to your goal of owning the property you've desired.

 

Peter


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Peter Powers, Broker.
Royal LePage Real Estate Services Ltd., Johnston & Daniel Division, Brokerage
 
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