First timer: Making an offer

[Skibadee]

Ok so im an excited young guy whos just been pre approved
has the downpayment ready and is intersting in making a purchase.

I have decided that although interest rates are great, I want to live in a condo not a house. I am looking to buy in the Yonge and Eglinton area
I feel this area will have a lot of upside in the future, good for renting
and is still close to my family home/work. I cant imagine living here for more than 5 years.

So I guess the question that is really hard to answer is this....

How do you know what to offer for a condo, I mean is there any rule?
if a condo is listed at $250k do I offer $200k? $225k?

What can I use for leverage, should I use the prior sales fo the same size condo? Can I use the economy downturn to my advantage?
I notice some units have been listed and relisted for 6-9 months do I have a better chance of getting a better price with these?

How do you really know your getting a good deal

I guess this isnt an easy question

 

[MacLeod]

what do you need?

Hi

I honestly think you need an experienced agent to run defence for you and guide you through the process.

 

[JayBee]

You need an agent bud.

 

[Observer Walt]

Agree with the above responses. Get an agent representing you, not anyone who is representing any of the sellers.

Get your agent to give you a complete rundown on sales in the building(s) which you are looking at. This is your basic homework. Your best guideline is obviously recent sales of the same model of suite in the same building, if possible. That will be a better guide in terms of what to offer than the listed price. Listed prices are sometimes realistic, sometimes not so much. In some buildings, allow for height differences (higher prices on higher floors with good views)

Units listed for longer than 60 days are probably overpriced, or they would have moved even in a slower market. But see above.

Best wishes.

 

[Shtopor]

Is it urgent for u to buy? If not then wait. Don't believe realtors they are
interested party in this bussiness besides most of them have no idea about where market heads . Read, read, read . There is plenty info about the fact
( yes its a FACT for god sake) that RE prices are dropping. Surf net check
Garth Turner blog, there is a lot to go through.
Now if money is not an object then go ahead, hire agent and buy.

P.S. Shouldn't have posted about it, the guy looks like excited , lol, I mean what is to be excited about, RE? Anyway here is the link,
http://www.greaterfool.ca/
and don't forget to drop a line in this forum in a year to thank me.

 

[simuls]

I agree with Shtopor in that you need to decide if it's urgent that you buy right now and not in 6-12 months. Low mortgage rates will be here for the next year at least, and the only side the condo market will see - especially in the size/price you're interested in - is the downside. Wait, read, learn and get an agent if you feel queasy.

I'd go against the above posters in saying that if you feel confident you can determine - on your own the price to pay, then use the sellers agent as dual, then negotiate down using their reduced commission (if they area dual agent then the overall commission usually will drop from 5% to 3% which can result in a lower price for the buyer, higher for the seller and more money for the agent.)