Real estate for sale in Emerson New Jersey – MLS# 1530037

danley-genetors

Wall Street Journal

Your Real-Estate Horoscope
Wall Street Journal
Buy or rent? Sell or stay? With the full moon on Saturday and autumn quickly approaching, we've checked in with a professional astrologer for a light-hearted look at what the stars have in store for your real-estate future. As Saturn moves into ...

How to win at the Toronto Real Estate Game

Mon, 10 Aug 2015 08:48:35 -0700

With prices sky-high, let's put together a list of positive and constructive ideas on how to beat an over-heated market (and ignore that silly CBC article). Here's how I've managed to work the system so far.

I would love to hear what others are doing.

Rule #0: Emotions are your enemy. Write down your max number before you start wading into the fray and do not go over that number. See Rule #11.

Rule #1: The only way to win a rigged game is not to play the game. Rent, find a job in a different city, get roomates, move in with your parents. Did I mention renting?

Rule #2: Don't use MLS. Everyone uses MLS. Instead, use Property Guys (private sales), or forsalebyowner.ca, or homesandland.com, or even Kijiji. We used RedPin (they pull from MLS but they have no commission, we got cash back after our purchase, very knowledgeable, zero pressure, zero cost to us, we used them for purchasing our condo 2 years ago and it was fantastic).

EDIT: Note - there's no substitute for a good real estate agent, especially if you're a first timer. It's just really hard to find them...

Rule #3: Don't be in a hurry. I monitored the market + looked at houses for over a year before we purchased our condo downtown, and we got it for a steal because the sellers were very motivated to get out (they just had a baby, etc.) and condo fees in the building just went up (we don't care, we have no car and walk to work). Patience pays off!

Rule #4: Choose a neighbourhood that's shady. It won't be shady for long. The only way we could afford our place was because it's in Regent Park. But in the last 2 years, the neighbourhood has transformed in amazing ways. I think Regent Park is the last bastion of semi-affordable housing close to downtown because people are still afraid of it. Use misguided public opinion to your advantage.

EDIT: Another example of this is parking: houses without parking will often get fewer bidders and sell for less than comparable (or worse) houses with parking, because many Torontonians are still fixated on car ownership. So if you don't rely on driving or are fine with parking on the street, you may be able to get a good deal on a house without parking.

Rule #5: Pool your money with your friends or brothers/sisters and move-in together. Note this requires MAJOR trust and strong bonds. Be sure to write up a legal agreement for all parties. (EDIT - people think this is bad idea, probably only works for a small subset) New Rule: ask your parents, friends, brothers/sisters for money.

Rule #6: Put the 20% down. Don't dump everything you have into a house. Be comfortable. Don't stress. Yes, interest rates will absolutely go up eventually. If you do purchase, remember that real estate is a long-term game. It only really pays off if you're around for 10+ years, unless you're a professional home flipper or you're a wizard with a crystal ball.

Rule #7: Change your lifestyle. This weekend we went house hunting in the outskirts of Bradford for an old farmhouse. Old farms can be found for cheap, although they need work. The idea is we rent out our downtown condo, and then commute 2-3 times a week from the country (If you have a Smartcar you can park for cheap in designated areas downtown) (if our bosses let us). There are some great houses beyond the horrors of Mississauga / North York / Scarborough suburbs.

Rule #8: Look for places with separate basement units you can rent out (provided you're in a hood with a healthy rental market). Much less messy than pooling money with friends/family.

Rule #9: If you're buying for the first time, consider not getting an agent. As a buyer, all an agent is going to do for you is 1) find/sort through listings, and 2) access the MLS database to find price histories, comps, etc.. You can do #1 yourself, and the listing agents of places you're interested in can do #2. The listing agent can also sign off on both ends of the deal (and your lawyer does all the important work anyway). Provided the seller isn't a moron, this should help you get a better deal, since they can then beat the listing agent down on commission. Plus is means the listing agent now has a massive conflict of interest in your favor (they will definitely want you to get the house in a bidding war, since they won't have to split the commission with another agent).

EDIT: this one's controversial - first time buyers, might also be a good idea to go with an agent you trust.

Rule #10: Make bully offers. Preferably before the first open house, as the listing agent ought to call everyone who has expressed interest in the place to tell them you are putting in a bid. E.g. if the open house is on Sat, put in your offer Fri night or Sat morning. This hopefully gets you negotiating price one-on-one with the sellers rather than in a bidding war.

EDIT: Bully offers are a controversial topic, a product of a difficult market. There's nothing secret about them, the practice is so common it's expected and some real estate agents and sellers have policies on them. Some think they're terrible behaviour, the principle that "you don't win if you don't try / it never hurts to try" can be false, the bully offer can, and has, back fired on buyers and agents.

Rule #11: Generally, if you find yourself in a bidding war, you have already lost.

Rule #12: It's a big city, pick 2-3 neighbourhoods and stick to them, it's too time consuming and frustrating to look at real estate over the entire GTA. If you, a first time buyer, has a hard working real estate agent he or she will tell you which 2 or 3 neighbourhoods you have best chance of meeting your requirements affordably and timely; again, this can be very difficult to assess on your own. NOTE: this requires a GOOD real estate agent. They are hard to come by.

Rule #13: Buyers should make a requirements list, probably 3-5 items, and predetermine which are required and which are negotiable: transit, parking, schools, parks, shopping, route to work, bedrooms, office, den, bathrooms, basement.

Rule #14: This worked for someone: Find the area you want to live in, then rent in it - make sure you want to live there 100%. Then approach your landlord, and put up notices in the mailroom saying "rent in building, would like to buy privately - call xyz before you list with a realtor" Then try to negotiate a deal - you'll get the benefit of a) no bidding war and b) saving a shit ton of money on realtor fees. A lawyer does all the crap anyway, and you're doing your due diligence by living there first.

Non-traditional times call for non-traditional methods.

EDIT: Some excellent comments below, I'm adding more rules!!!

submitted by staples1234567 to toronto
[link] [233 comments]