17 May 2013
Relationships and Real Estate
This post was prompted by a buyer that I worked with about a year ago. Single guy, huge income, late 20’s and he was looking for his forever home, one that he could settle in to with a family….what?
Over the years we’ve spent rocking the real estate market there is one type of email/phone call/text that our agents get regularly and it goes a little something like this:
Hey Ara, we’re getting married so need to move…
or
Hey Ara, sorry to say that we’re splitting up so need to move…
or
Hey Ara, I’m ready for my first place! Let’s go find a condo. Party time, bro!
Most people make their real estate decisions based on their relationship status today rarely thinking of where they might be in a few years. And that’s exactly how it should be! Buy that condo in the hot neighbourhood if you’re young and single. Make eyes with that cute girl at the bar – Date that cute girl at the bar – put a ring on that cute girl at the bar: Call your Realtor! That’s how it works, you never know where you’re going to be in a year or two especially when you’re young and single. Knowing what you may want out of a forever home will come with years of home ownership in different neighbourhoods and in a variety of home styles from condos to castles. You can use our Building and Neighbourhood Guide to see what’s out there, then check out our killer search tool (link waaay below).
In this case the Buyer was certain that he wanted that 4 bedroom, 3 bathroom, 5 car parking suburban home…and off we went. When I meet a buyer for the first time I get a sense of what they want and 60% of the time they end up buying something completely different. I thought we’d for sure be looking at condos or smaller, more urban properties eventually. About 55 houses, 3 almost offers, and the realization that he’d rather wait for the market to crash to buy all happened in about 4 crazy months. There was something wrong with every house, or what he felt it was worth was just a tad below what the Seller would accept. It almost felt as though he was sabotaging himself at every opportunity. Of course he was! he’s in his late 20’s looking for a huge house for a family that doesn’t exist yet, he was still single!
There must have been something else going on. Who was really making these decisions? After a few more viewings guess who came along? Mommy dearest. Turns out that the family was directing his path here. They want him to be married, have kids, and live happily ever after (well everyone but the father, he was cool). Big problem though…not to many 20 something single girls living solo in big houses at Don Mills and Lawrence (although the Joey’s at the Shoppes at Don Mills gets pretty interesting after 11pm!). My recommendation: This boy needs to move to a happenin hood and have some fun before he gets himself into his forever home. Advice well received by the Dad and Buyer but Mom didn’t like that very much. Sooooo, after losing that client I moved on and fine tuned my Buyer consult skills to make sure this kind of information comes to light much earlier when working with a Buyer.
As far as I know, he still hasn’t bought anything and homes that he was looking at are now $100K more expensive. I know that’s not what he wanted anyway.
Here are a few resources for you:
1. The Worlds Greatest Toronto Real Estate Search Tool (shhhh, we give you more info than the MLS)
2. The Worlds Greatest Guide to Investing
