Sell Your Home Faster in Toronto By Offering Concessions to Buyers

Toronto homes are definitely not selling at the same rate they were a few years ago and in some areas, the Toronto real estate market has reached a stalemate. The market is crowded with excess inventory and many homes that would have been snapped up overnight are now languishing on the market for months on end. Depending on the home and its location, interested buyers bid against one another with the result that the purchase price was higher than the asking price.

Numerous investors became involved in Toronto real estate at this time due to the ease with which one could obtain a mortgage and the low rate of interest charged on the loans. Signs that the market was in difficulty did start to become evident in late 2007, but the bubble did burst entirely in 2008. Experts recommend that the situation will continue to get a lot worse. Many homeowners are getting very concerned about the situation and are wondering if there is anything they can do to protect themselves in the current market.

If you are one of the many homeowners faced with financial difficulties and have no option but to try to sell your home now, you will have to come up with very creative ways in order to do so. The market is full at the present time with an excess of homes for sale due to foreclosures, impending foreclosures and investors who are trying to recoup some of the money they have invested.

It is important that you recognize the fact that there is a glut of homes on the market. A few years ago it was a seller’s market with few properties for sale and an excess of buyers. Today the situation is reversed with more homes for sale than there are buyers in Toronto. Prices are lower and buyers can take their time in looking at properties and deciding which one they want to buy. This makes the market very competitive for sellers who do have to offer buyers something that will entice them inside and peak their interest.

Providing concessions for buyers is a new idea for sellers at the present time. During the 1980’s many sellers offered to pay the closing costs for the buyer, but in some cases the amount of the costs they can pay is limited depending on the lender the buyer is using for the mortgage. Some of the options you can consider in deciding to offer concessions is to include an allowance for the buyer for the purpose of upgrading the flooring or making a contribution towards the closing costs of the transaction.

Concessions were not a typical part of a selling transaction where both parties negotiated over the purchase price of the home. However, there is little negotiating taking place in the Toronto real estate market today because sellers are already selling their homes at the lowest possible price. You do need to offer the best possible price in order to entice buyers.

One method of offering concessions to buyers could include offering to include the draperies in the home if the buyer expresses interest in them. This can also include rugs and accessories in certain rooms of the home, such as an electric or gas fireplace, especially if you are moving to a smaller home and know that you will not have room for it. In the case of a seller who is moving to an apartment, throwing in the lawn mower is a concession that most buyers will jump at.

Another option would be to pay the buyer’s points, which is a win-win situation for both parties. One way in which you could do this is to deduct a percentage of the purchase price and use this money to purchase points for the buyer. In this way, the buyer can obtain a lower rate of interest on the mortgage and you manage to sell your home. The buyer wins with a lower monthly payment and you have enough money to pay off your mortgage.