Do I sound like Shakespeare? Its hard to make a frustrating Brutal Reality sound anything close to eloquent or romantic.
Anyone involved in the current GTA Real Estate market is feeling the brutal Stress and Frustration, whether its a Seller, Buyer, Realtor, Financial Specialist, Home Inspector, etc...(the trickle of affected people goes on and on..) However, our First Time Home Buyers have to be at the top of the Frustration list. First time Home Buyers are typically coming in with very little financial resources and just scraping enough together to come up with a 5% or 10% downpayment. Frustration #1 - They have very tight finacial boundaries to stay within. Currently houses pretty much are all selling in multiple offers, often with 5 - 20 offers in on each property and often going for 50 - 100+k over the asking price, Frustration #2 - In multiple offers you have little chance of winning a property if you leave your financing condition in your offer. Risky? Can be .... it's so important to know exactly what your limits are, and, to make sure your financing is secure. It's true that a pre-approval is not a guarantee but if you work with a trusted and reputable mortgage specialist, they will be able to guide and direct you in confidence. Frustration #3 - The First time Home Buyer wins the property in multiple offers, but what if the property doesnt appraise for the purchase price? Oh dear, now my heart is not just aching its bleeding. In this situation the Home buyer would have to come up with the difference between the appraised amount and the purchase price.
My message to First Time Home Buyers: Surround yourself with Experienced, Trustworthy, Knowledgeable people that will guide you, and at all times look out for YOUR best interests!