As promised here is some advice on buying a home in Hamilton during this incredible booming market.
First find a Realtor® you trust and feel comfortable with and sign a Buyer Representation Agreement. Make sure someone is actively searching for you and is “on it”. If you attempt to search yourself, you will always be a step behind. It’s tough for us and we get the information the instant it is uploaded to our Association.
Second, set your search up slightly below where you qualify in this market. Normally we would search just above where you qualify knowing that the homes will sell slightly below asking. However, in this market in Hamilton it has become “normal” to sell over asking so this gives you some wiggle room to offer over asking if you are not looking at your max.
Third, don’t be afraid of competition. Look at the comparable sold properties with your agent and decide what you feel the house is worth. There are some who strategically under price their listings so don’t get too caught up on the listing price. What is the value? More importantly, what is the value to you? Does it meet your needs? What are your short and long-term goals related to real estate? What about the area. Are there any external factors that affect the value beyond the regular increase in the market? What is happening there?
What is the magic number in competition? That is always changing and is different in every scenario. A question I would ask you after looking at the comparable properties that are similar and have recently sold is; What is the number that you will be okay with if you lose by a little and if you win, you won’t feel you overpaid? That is the magic number because it’s the one you will be comfortable with win or lose.
I know it is extremely frustrating but this is happening because you are in the hottest market in Canada and there is no sign of that changing. Hamilton is an excellent place to buy and a great investment.
Lastly, don’t let you emotions get the best of you. Find a Realtor® you trust and have faith. It is a difficult process but a worthwhile one and the rewards can be fantastic!