Buying a house in Toronto’s current market can feel a little bit like an episode of American Ninja Warrior. You’re standing on the platform, listening to the countdown until you’re off. You jump across a row of teetering columns, Indiana Jones-style until you reach the Tarzan rope. 

Swinging onto the next platform you grab the ledge with your fingers, but you’re already starting to feel tired. You can see the end from here but your fingers are slipping. You’re grasping hard, trying to make it work, trying to stay in the game, but you just simply can’t hold on any longer. 

You lose grip and fall into the water below. All you can do now is swim back to the start and try again. 

Sorry if that sounds a little bit dramatic, but in today’s real estate market with lower than low inventory and multiple offers going on every property, buying a house can be a real nail-biter. 

Is it possible to overcome these challenges and buy a home in Toronto in 2022? Absolutely. Here are my top 3 tips for successfully buying a home in Toronto this year. 

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Tip 1: Hire the Right Agent 

The right agent with the right experience makes a world of difference in today’s market. It’s absolutely essential that you hire an agent who has what it takes to help you succeed. And I’m not talking about reaching out to a listing agent to learn more about a property. 

A listing agent is contractually obligated to work in the best interest of the seller, getting the highest possible price. That doesn’t sound like someone you want on your side, right? 

That’s why I always recommend getting a buyer’s agent to help with your house hunt and purchasing needs. Hiring a dedicated buyer’s agent is free to do, their commission is typically paid by the seller, so there is literally no reason to not use one. 

While we’re on the topic of finding the right agent. What do you think about hiring your BFF as your agent? Read my thoughts on the matter here.

I would even go a step further and advise you to avoid agents who offer significant kickbacks or rebates for buying services. In my experience, those agents are usually working with a ton of people who see the rebate and think they are getting a better deal. 

But in reality, the kickbacks are pretty much zero when you think about what you are actually getting. 

For example:

• These agents are typically overloaded, busy, and rarely have time to give high-quality service. 
• Since they are so busy, your house hunt will likely take longer than if you worked with a dedicated agent. 
• The longer you spend in the market looking for your next house, the higher prices will be when you eventually do find one. (Condo prices in Toronto are going up, on average about 2% month-over-month. Freehold homes are going up about 1.5% month-over-month.)

Having the wrong agent on your side, taking months to find a home, is literally costing you money with every month you’re unsuccessful. 

Tip 2: Adjust Your Mindset 

The next time you’re finishing up a hot yoga class in that all-too-relaxing Savasana pose, emptying your thoughts and reaching zen, I want you to do me a favour: toss out your home buying expectations. 

It might sound harsh, but many of us have seen how our parents bought real estate and expect to have the same experience. 

The truth is that in today’s market, a well-paying job plus a down payment does not always equal a beautiful family home. 

Prices are so high and competition is so fierce that you will probably need to make some compromises to get onto the property ladder or onto the next step. 

However, there are a few things you can do to help your situation:

• Tap into the Bank of Mom and Dad – If your parents have the means to help you out financially, this could be a great way to bolster your down payment and beef up your purchase price. 
• No one is ‘too good’ for a small condo – A small one-bedroom or junior executive condo is an excellent first purchase. It doesn’t have to be your forever home, you don’t even have to live in it! Just get into the market, build equity, and sell when you’re ready to move on. 
• Location, location, location – If you work from home, you have some freedom to look in cheaper markets outside of the city. Don’t let location be your only deciding factor. 
• Two words: Basement apartments – Buying a freehold with a basement apartment is a great way to improve your real estate affordability. Why pay your full mortgage when you have a tenant who can chip in too?

Is it better to buy first or sell first in today’s market? Check out our recent blog to find out right here.

Tip 3: Never Give Up!

Just like the small-town girl on the midnight train, don’t stop believing! I know things can get exhausting and discouraging when you’re trying to buy a home in today’s competitive market. We even have a term for it: buyer’s fatigue. 

When you’re looking at homes, making offers, and continuously getting outbid, things can start to feel pretty hopeless. But the key here is to be persistent. Don’t give up. Keep trying. 

You might feel tempted to take a break for a few months. Wait out the market. But in my experience, that logic is flawed. Here’s why:

The prices you didn’t like today are going to look like a steal of a deal in 1-2 months. Remember when I said that condo prices are rising about 2% per month? Let’s put that into perspective. 

If the average price of a condo in Toronto is $800,000, that means each month the price will go up by about $16,000. So if you take a 6-month break in your house hunt, you could be paying almost $100,000 more for the same condo in half a year’s time. 

Now, nobody knows for sure what the market is going to do in the future, but most experts agree that prices are still on the rise. 

There is a Light at the End of the Tunnel 

The current real estate market in Toronto is challenging. It’s not impossible. By finding the right agent, adjusting your expectations slightly, and tackling the market with tenacity, buyers can absolutely find the right home and make great moves toward homeownership or finding their forever home. 

I’m always happy to talk about the market and answer any questions you might have. Give me a call or text me at 647-973-8392 to start the convo. You can also sign up for my monthly newsletter right here!