 The
purchase of a condo is a complex and sometimes frustrating thing. The ultimate decision is
more like a science of compromise as opposed to simply finding that ideal home in the sky
that your imagination has conjured up for you. Most times, a great deal of time, energy
and expense is wasted when approaching this challenge from an unstructured and/or
undisciplined approach. There is that one gleaning example that everyone has heard about
where this guy and his wife just stumbled on the greatest deal in the world one afternoon
just walking down the street, but in the every day world that I live in deals are few and
far between.
Astute real estate investors know that how you approach the challenge from the very onset
is key. The actual implementation strategy changes with market conditions, for example in
today’s fast paced, multi-offer market we approach buying differently than we did
just a few months ago when the market was more favorable to buyers.
The best tip here is find a professional full-time Buyer’s Agent who is thoroughly
versed with the market and individual condo developments that comprise it. Residential
condominiums, lofts and townhomes are a highly specialized niche market in the overall
scheme of real estate in Toronto as in every market.
 As in all
professions, regional knowledge and expertise are the cornerstone for selecting your
agent. The other critical factor in selecting your agent rests in that agent’s
professional positioning. The majority of Realtors today are trying to say that they are
both a Buyer’s Agent and a Seller’s Agent striving to capture that elusive
“customer” to fuel their straight commission income.
Understand that even the industry itself looks down on the concept of attempting to
represent both parties to the transaction. Imagine someone suing you so you retain the
other parties lawyer to defend you (lawyers have laws prohibiting such conduct). When
selecting your agent be sure to ask them what kind of real estate they specialize in and
which party representation do they practice. Should someone choose to sue me (frivolously
or not) I want my privileged information between my lawyer and I remaining only between my
lawyer and I and not shared between the parties as is possible (actually a legal
obligation of the agent is to disclose all things to the other party) with dual agency in
the real estate field.
 Even before
interviewing to select your own agent you should sit down and assess your life situation.
Take a map of the city and circle where you work, where you play, where you go to be
entertained and any other key influences that play a role in the overall selection of
location. They say the three most important things involved in the purchase of real estate
are “location, location and location”.
In condos this is not always the case. A disreputable or incompetent builder attempting to
develop a condo in an excellent location can quickly dispel that theory. Location is
important mind you but neglecting the developer's reputation, track record for building
and getting registration (for example to name only a few of the considerations) is just
plain ill-advised.
The selection of the right condo is a blend of location, developer, physical amenities and
features, price, maintenance fees and what all is included. To go back to our circles on
the map game (above), once you have physically drawn all of these various circles onto
your map try to identify where overlap exists. Once all these circles of influence
converge and are set out you begin to narrow down the geography to places that you are
somewhat connected with. This small exercise will assist you to identify the areas that
you are best suited for. |
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 You will then want to take a
long hard look at whether you intend to move into a resale condo or a new development.
Both alternatives offer their own benefits and pitfalls. Obviously, if you are moving to
Toronto and want to find something to live in right away then a resale is the way for you
to go. However, if time is on your side and you can approach the scenario from a longer
term perspective a new development may be in the cards for you. Either way, it is
important to identify which way is for you.
Once you have identified whether a new or resale condo is the way for you to go and
identified the general area in which you would like to purchase you want to now select
your agent. Realtors today specialize. It is wise to interview three or four different
Realtors to find someone that you are comfortable with. Many buyers make the mistake of
picking the first Realtor they meet or using a family member or friend without regard for
how much expertise they bring to the equation. Remember, in Toronto the average price of a
condo is just over $200,000, you are investing around a Quarter Million Dollars! Do you
really want to help cousin Suzy build into her new career choice at the peril of
potentially suffering financial loss (if cousin Suzy cannot read floorplans, siteplans and
contracts what possible good can she do you? If she has not been involved in condos and/or
buying/selling them can she really fulfill the role for you? The bottom line . . . get a
professional agent to represent you. If you would like to see cousin Suzy make some money
give her some out of what you’ll save using a skilled professional condo buyers
agent.
 Your agent
will eliminate most of the research for you. You want to identify your wants, needs, and
would likes. Identify the area and amenities that you would like in a building. Understand
that amenities add to the maintenance. You have got to add in your monthly maintenance
fees into you budget and you want to understand that amenities add directly to the costs
of operating your condo development.
Swimming pools are money hogs that, if you don’t use, you may want to consider if you
want to pay to maintain. They were a huge attraction in the late 80’s and 90’s
but the rising price of fuel and energy has lessened their demand. Today you will find
viewing rooms with large screen TV’s, etc., boardrooms, and generally less money
consuming maintenance features.
Before you even start to run around viewing prospective condos, pay a visit to your banker
and get pre-approved for your mortgage. This is a painless procedure that puts you into a
solid position with respect to buying. Knowing how much your bank will advance you in a
mortgage places you on solid ground when it comes to inspecting properties.
 Before you
start running around be sure to gain a thorough understanding of “Agency”. After
all, you are not a condo specialist and therefore will be dependent upon having someone
assist you and it is therefore imperative that you understand who that person is, what
role they play and how they will assist you.
They have got to have a hands-on awareness of the market today. There are thousands of
units on MLS today but only a select few are quality “high demand” residences in
sound condo communities. Unless your agent is thoroughly immersed in the core market today
they may prove of little help when it comes to making your ultimate decision. I show our
recent purchases on my website. |
