Buying a house in Toronto is no small feat, and neither is selling one. When it comes to knowing how to sell your luxury home, there’s a lot to consider and prepare for. But don’t worry! This informative guide will help build your luxury home selling mastery to the level you need to get the deal done right – and quickly! 

If you’re ready to learn what it takes to sell your luxury home, let’s get started by exploring some key areas you’ll need to be familiar with: 

• How to sell a luxury home: 7 ways to attract buyers
• 5 Best ways to find luxury home buyers
• 7 luxury home staging tips to sell your home fast

Exceptional marketing and staging are vital to selling your house. So here’s what you need to do to set yourself up for success.

How to sell a luxury home: 7 ways to attract buyers

If you’re selling your home for more than $3 million in Toronto, it’s typically classified as part of the luxury real estate market. This means you have to find and attract unique buyers with sophisticated needs and expectations.

So you’re probably wondering: what is the best way to sell my luxury home? Here are seven ways to effectively take the guesswork out of how to attract luxury home buyers, navigate the selling process, and sell your luxury home fast.

1. Work with a realtor specializing in luxury homes

Working with a realtor who has a proven track record of buying and selling luxury homes for their clients is one of the best things you can do. On top of having specialized market knowledge to guide your pricing strategy, they also understand buyer expectations and how to negotiate to get you the best deal possible.

A good agent will also make lead generation easier for you. They’ll access their exclusive network of client contacts, and tap their well-established relationships with other luxury home realtors who may have buyers looking for a new place to call home.

PRO TIPS

✔ Working with an agent who excels in vetting prospects will ensure you’re only spending time on serious, qualified buyers.

✔ Choose a realtor who prioritizes trust, transparency, and first-class service for every buyer. Prospects will expect (and demand) it.

2. Lead with your wow factors & key features

The uniqueness of your home and its features will be key factors in your pricing strategy, as they affect your competitive position in the market. Luxury home buyers are looking for a ‘wow’ factor, so if your home has one (or more), lead with it in your marketing. 

There are certain amenities buyers are going to prioritize over others. These trending features in luxury homes change over time, but it’s likely you will sell your luxury home faster if it currently offers some of these sought-after items:

• Outdoor living space – Water features, fire bowls, cozy seating areas, and heaters have become necessities for enjoying nature and entertaining year-round.
• Flex space / home office – Well-appointed home offices, au pair suites, and dining rooms that easily convert to conference rooms are multifunctional must-haves.
  
• Vehicle storage – The garage should be as attractive as the high-end vehicles in it. It’s about showroom quality car lifts, premium flooring, and sleek storage.
• Home automation / smart tech – From security to wireless systems, charging stations, home theatres, and window covering controls, tech customized to a homeowner’s habits is essential.
• Eco-friendly features – Homes with green technology that generate energy efficiency in air quality, backup power, and water flow are becoming common expectations.
• Multigenerational living – Being able to accommodate the growing lifestyle trend of having three or more family generations living under one roof is an advantage. Stylish adjacent or separate living quarters for privacy, along with barrier-free features, are sure to impress.
• Wellness / Self-Care Support – Water and air purification systems, pools, hot tubs, spa-like bathrooms, indoor gyms, and yoga/meditation spaces have become particularly enticing.
• Turnkey – Move-in ready conditions (particularly desirable by foreign investors) allow buyers to start enjoying the luxuries of their new home immediately.
• Location – Easy access to high-end restaurants, retailers, entertainment, and child-care services offers your buyer whatever they need nearby.

PRO TIPS

✔ Emphasize cubic footage if you have high ceilings, as well as brand names and measurements (where possible) in your features list. Specs sell.

✔ Emphasize ways the property and home can support the rising trend of stealth wealth.

✔ Include a walking score in your marketing materials – especially to high-end retailers, as well as locations that support wellness (such as trails and dog parks).

3. Price it right

Don’t let the fact that Toronto’s luxury housing market is currently outpacing the non-luxury market in price growth throw you off. You still have to have a solid pricing strategy, because it has to appeal to potential buyers within a limited pool. It should be competitive with other listings and market conditions, while still ensuring you get the most you can from what your home has to offer.

Pricing a luxury home involves the skill of balancing many factors: amenities, market, location, privacy, property size, and so on. Your real estate agent is your best resource for helping you do this successfully. 

Also, a word of caution: don’t price your house too high initially, or you risk it sitting on the market for an extended period of time. This will eventually force you to reduce the price, which can result in receiving lowball offers and negotiating from a weaker position. 

PRO TIP

✔Pricing your home realistically will help attract the right buyer and shorten your home’s time on the market.

4. Dress to impress

Luxury home buyers are going to be much more critical and far less forgiving of flaws in your home’s condition than typical home buyers. This means making good first impressions is crucial to successfully selling your home. Boosting your property’s curb appeal, along with professionally cleaning and staging your home, are two easy and proven ways to capture and heighten buyer interest.

Hire a professional stager who is experienced in accentuating a luxury home’s best features. It’s one of the easiest and least stressful ways to put your home at the top of any buyer’s ‘must-see’ list. This will boost your ROI by increasing the number of offers and competitive bids on your home. According to the Real Estate Staging Association, staged homes spend 73% less time on the market than unstaged offerings.

Properly staging your home is a big job. It requires specialized skills and talents to pull off, so you usually shouldn’t try to do it yourself. A professional stager will have a vision for the space, including identifying and supplying any contemporary decor or modern furniture pieces needed to bring it together.  

PRO TIPS

✔Move-in ready conditions are highly desirable, so address any necessary renovations before you stage and list your home.

✔Declutter your home so your professional stager can purposely arrange beautiful decor pieces as focal points. This will create a sense of grandeur for the moment a potential buyer walks through the door.

5. List at the right time 

The spring and fall are traditionally the most popular times to buy a home in Toronto. This is because most closing dates are 30 to 90 days removed from the sale date. However, there could be a competitive advantage to listing outside of those times (December to February or June to August), as it may mean having fewer listings to compete against for attention. 

PRO TIPS

✔Selling your home will disrupt your work schedule, family routine, and school year. So choose a listing date that will minimize the stress of these changes.

✔If mortgage rules or interest rates are rumoured to change, you may wish to list sooner to stay ahead of them.

6. Forego the open houses for scheduled private viewings

If you’re wondering how to find luxury home buyers who are serious about making an offer on your house, offer appointment-only viewings and forgo public open houses. This satisfies the desire of luxury buyers for exclusivity and “white glove” service. It also ensures you’re not wasting your time speaking with nosy neighbours who have no intention of buying your house.

Furthermore, privately-scheduled viewings help you (as the seller) retain some privacy by protecting your identity and situation from the general public.

PRO TIPS

✔Give potential buyers enough time to fit private showings into their schedules. But don’t book so far in advance that they might forget about their appointments or lose interest in your house.
✔Have your realtor lead private tours with each prospective buyer and their agent. They can showcase the key selling features of your house, as well as answer any questions or concerns as they come up.

7. Create clear branding & marketing messages

The key to marketing to luxury home buyers is to sell the unique features and story behind your home. For that, you need to use emotional and engaging messaging, from the words your real estate agent uses in private tours to the messages in your sales material. You need to prominently position your home as an option that’s worthy of a buyer’s consideration.

Demonstrating how your home can fulfill a luxury buyer’s desires is extremely important, because they have the purchasing power to avoid compromising on what they want. So show them how your home has what they need!

Think of your home as a brand. What qualities do you want buyers to clearly associate it with? Exquisite design? Abundant opulence? Unparalleled quality? Turnkey convenience? Historical significance? Comfortable elegance? Once you have the answer, build your messaging around it.

If there’s an interesting story about your home’s history, property, construction process, neighborhood, or architectural design, share it! While luxury home buyers love tangible features, they love the intangible almost as much. It makes them feel like they’re buying something that’s beyond a building; they’re also gaining ownership of impressive stories to share with friends.

PRO TIPS

✔ Mention in your marketing materials the names of any well-known architects, builders, or interior designers who worked on your home. This can help to create intrigue.

✔ Have a graphic designer create a logo for you to use in your marketing materials. This will give you a symbol buyers can associate with your home, differentiating your property from other listings.

✔ Talk with your real estate agent about the type of buyer your home will attract, based on its price point and those of competing listings. Then craft marketing messages to target that type of buyer’s needs.

8. Invest in professional marketing materials

There are four key things you should hire professionals for when putting together your marketing materials for selling a luxury home. Whether you’re using printed brochures, presentation folders, online listings, a personalized website, or custom video tours, you’re going to want to invest in pros to help you with the following elements:

• Photography – Since most buyers will start reading a listing by looking at the photos, that first impression has to be captivating. So ask your real estate agent to refer you to a photographer who specializes in luxury homes. They will know the exact lighting, angles, and cropping to capture the best features of your home.
• Copywriting – The next important step is to sell the lifestyle your home will afford its new owner. Use carefully-crafted professional sales copy to flawlessly focus on the benefits of your home’s features. Your goal should be to exceed any prospective buyer’s expectations and needs.
  

• Graphic design – Your home is a multi-million dollar product you’re trying to market, so it’s not something you should try to sell with DIY marketing materials. Hire a professional who can leverage your photos and copy to successfully design engaging marketing content.
  
• Video – Luxury home buyers crave features that seamlessly enhance their lifestyles. So use professional video to show them the magnificent experience they can expect from your home and its amenities. You may even want to consider hiring a professional drone operator to capture footage of your property’s impressive exterior.

PRO TIPS

✔ If you’re listing your home in the winter, hire a professional photographer during the preceding summer to capture what your landscaping looks like in full bloom.

✔ Use enough professional photography in your marketing to satisfy the needs of buyers who may not be able to see your property in person (e.g. foreign investors).

✔ Make sure all your marketing material is optimized for online use or sharing. Buyers are busy, so your website and email attachments need to load and open quickly. 

9. Sweeten the deal

A bonus (or two) might just be the competitive edge you need to differentiate your listing from similar offerings on the market. So try to include extra items you own with the house, such as a unique wine collection, gorgeous baby grand piano, or set of exquisite outdoor furnishings. Freebies like these are sure to sweeten the deal and make it harder for a buyer to walk away.

5 best ways to find luxury home buyers

Let’s back up here for a second. Before you start worrying about how to market to luxury home buyers, you have to figure out how to find them first! That means understanding what kinds of buyers you want to attract so you can determine the best way to reach them. To align your promotion with their buying journey, here are five ways to target these elite groups through niche marketing:

1. Your real estate agent’s network

Many luxury buyers seek more sophisticated means of finding a home, and are more intrigued with listings that come to them through exclusive means. So utilizing your agent’s network is an ideal place to start! Your agent’s connections are the best way to find (and market to) luxury home buyers, whether those are referrals, brokerage contacts, past clients, or other agents with affluent buyers.

2. Your personal and professional network connections

As the seller, don’t forget to tap into your own personal or professional networks. Do you know someone from work, a social event you attended, the golf and country club or a volunteer group who might be in the market to buy a luxury home?

3. Local luxury real estate ads

While word-of-mouth and referral advertising are the best ways to find buyers for your home, local luxury real estate publications can also be an effective avenue. Consider buying a full-page ad (or even a double-page spread) so you have lots of room to showcase your home’s beautiful photography and share its story.

Many publications circulate printed copies that put your ad directly in front of the right prospects. They usually also offer several online advertising opportunities to drive prospects to your listing.  Some may include a digital copy of the magazine (with embedded links to your listing or agent’s number), website or social media banner ads, e-newsletters to select subscribers, or other targeted digital ads (like property spotlights).

4. Social media advertising (limited scope)

If you’re trying to attract younger affluent buyers, highly-targeted social media ads can be effective at reaching them because of how frequently they visit the platforms. Instagram is ideal because it uses photography to capture attention and tell a story.

5. International listings

Check with your agent to see which online real estate investment and listing platforms they (or their brokerage) typically use to find foreign investors looking for opportunities. Ideally, the website(s) you use will be able to fully translate your listing into the languages of the specific countries you wish to advertise in.

7 luxury home staging tips to sell your home fast

Staging can involve decorating, but it’s not the same thing. It’s the process of preparing your home so it’s in market-ready condition and appeals to as many buyers as possible.

80% of prospective buyers know if a home is right for them as soon as they step in the door. So since there’s rarely a second chance to make a first impression, staging your home properly is critically important. That’s why we recommend hiring a professional to help stage your home.

With that said, here are some luxury home staging tips that you can get started on yourself. They’ll enhance the charm of your abode and maximize its sellability.

1. Declutter

Remove eclectic or excess furniture, as well as other clutter, from each room. Leave only a few select items. This will make the space feel bigger, cleaner, and more organized. Consider renting a storage unit to help with this process.

2. Depersonalize

Depersonalizing your space is necessary to help a buyer imagine what their life could be like in this future home. Remove family photographs, ornate door decorations, religious items, collections, or wall accents of a specific taste from rooms. Pay particular attention to the kitchen, living room, dining room, and master bedroom.

You’ll also need to go through this process on the exterior of your home. Remove flags, wind chimes, garden gnomes, Christmas lights, bird feeders, and other yard decorations. This will create a simple, clean landscape that’s more attractive to buyers.

3. Put on a fresh coat of paint

One of the simplest ways to update your home is with a fresh coat of paint. Warm colour palettes of neutral tones are best for your walls to keep the space warm, inviting, and attractive to a wide range of buyers. Avoid distracting and bold colours that scream personal preference.

4. Repair or upgrade hardware & lighting fixtures

Take a look at the condition, age, and decor style of your hardware and fixtures to see they should be fixed or updated. Don’t overlook even simple repairs like replacing light bulbs and broken light switches, or fixing sticky locks, leaky faucets, or loose door knobs.

You may also need to install additional lighting in your hallways, entryways, or closets to make the spaces appear brighter and more spacious.

5. Tend to neglected areas

Bedrooms, closets, basements, and garages are sometimes forgotten when staging a home. They’re parts of the house that guests typically don’t see… but that doesn’t mean prospective buyers won’t look at them!

Bedrooms should showcase hotel-style beds with fluffy duvets, warm throw blankets, and beautiful pillows. You want to project a sense of calm, serenity, and comfort to impress buyers.

Closets should have about 50% of their contents removed, and the remaining items should be organized by color and type. Make sure that hanging items are all facing the same direction. Don’t forget to clear away any off-season items and clutter from the floor, too! 

Basements and garages should be organized, clutter-free, and clean. Pay special attention to getting rid of cobwebs and spider webs!

6. Fix up your house’s exterior

Restain any brick facades on the outside of your home that need restoration. Also check for any sidewalk or driveway cracks that need to be fixed, leveled, or weeded. 

Ensure your front door and exterior lighting fixtures are in pristine condition. These will usually be the first parts of your home a buyer sees, and the impression they give can set the tone for what the buyer expects from the rest of your house.

7. Impress with cleanliness

After you have decluttered, depersonalized, repaired, upgraded, painted, and finished moving furniture around, it’s time to clean the interior and exterior of your home. Have your carpets, windows, blinds, and ducts cleaned. Scrub and polish/wax your floors. Power wash dirty siding and roofing. Clean your mailbox. Scour bugs off outdoor lighting. Make every room in your house sparkle. Nothing shows pride of ownership and care like an immaculately-kept home. 

PRO TIPS

✔ Professional stagers have an established network of reputable partners (like painters, floor installers, carpet cleaners, and more) they can access and pass discounts for hiring these partners on to you.

✔ For luxury home staging in Toronto, find a reputable professional with an impressive portfolio of work and client reviews. Also interview them first to see if they’re the right fit for your needs.

✔ Elite buyers appreciate the benefits of a professionally-staged property, and many of their real estate agents are more inclined to show listings that utilize professional staging.  

 

Ready to Sell Your Luxury Home?

Selling your home is a big job, but it’s much easier when you enlist the help of a professional real estate agent and a professional stager. With the right advice, approach, marketing, and network of contacts, they can make the house-selling process much smoother and less stressful. 

As industry leaders, we at Matthew Gravina Real Estate don’t operate with a “one size fits all” mentality. We know that every seller and every home is different. That’s why we take the time to get to know you, so we can custom-tailor a sales strategy that will deliver the results you’re looking for.

The right buyer for your home is out there. It’s time to go find them!

Call Matthew today at 416.805.2763 to get started!

This comprehensive planning guide to live in The 6ix is an all-in-one resource for buyers like you. You’ll get the best information, pro tips, and helpful links at your fingertips as you plan your next move. In this guide, we’ll help you prepare for the home-buying process by covering the following:

• What to know before buying a house in Toronto
• How to buy a home in Toronto: 10 steps to buying your dream home
  • Step 1: Know your financials
  • Step 2: Get pre-approved and financially focused
  • Step 3: Establish a budget of estimated costs
  • Step 4: Find a realtor
  • Step 5: Knowing what you want in your home
  • Step 6: Shopping for your home
  • Step 7: Making an offer
  • Step 8: Getting ready to call your new home, home
  • Step 9: The home stretch
  • Step 10: Closing an offer

The best way to avoid surprises is to know what’s ahead of you, so read on to find out.

What to know before buying a house in Toronto

We want you to have the best experience with buying a house in Toronto. And that starts with considering several important factors before you even begin the buying process.

• High cost of living – In 2021, Toronto was named the second most expensive city in Canada to live in. So expect to pay significantly higher prices on most things. Even the cost of your car insurance could rise, as motorists pay some of the highest rates in Ontario. Be sure to check out the most expensive and least expensive car insurance wards by postal code to help you minimize the financial impact.
• Housing options & prices – The GTA is one of the most populous metropolitan areas in Canada. So your housing options will likely skew towards condominiums over single detached homes. As of spring 2021, the average price for a detached house in Toronto was $1.75 million, and the average condo was over $720,000. (These are good figures to use when starting your budget plans.)
• Variety of neighbourhoods – There are over 140 officially recognized neighbourhoods in the City of Toronto (soon to be 158). Examining a map of core Toronto neighbourhoods and their profiles can help you prepare a shortlist of the ones you’re interested in moving into. This will save you (and your realtor) time by only looking at real estate listings relevant to those areas.
• Dense & diverse population – Toronto is the most populous city in Canada, the fourth most populous city in North America, and one of the most multicultural cities in the world. The City of Toronto is committed to equity, diversity, and inclusion as reflected in its motto ‘Diversity: Our Strength’.
• Robust public transportation system – Whether it’s by subway, streetcar, train, or bus, you’ll find Toronto’s public transportation is the best way to get around and navigate the city. This will especially be the case as the city’s urban population continues to grow.
• Always something to do – Toronto’s more than just the CN Tower along the waterfront. It also has intriguing museums, fun festivals, alluring concerts, beautiful gardens, edge-of-your-seat major league sports games, and countless restaurants. There’s always a new experience waiting for you in Toronto (though this means you might need to budget more for entertainment)!
• Safety in the city – The Economist’s Safe Cities Index 2021 ranked Toronto the second-safest city in the world based on various areas of security (such as digital, health, infrastructure, personal, and environmental). It’s comforting news, given the city’s dense population.

How to buy a home in Toronto: 10 steps to buying your dream home

Buying a home can be a daunting and stressful process, especially if you are unprepared and don’t know what to expect. That’s why we’ve tried to demystify the process for you so you know exactly what you’re getting into. In this section, we’ve covered everything right from understanding your finances to getting your house keys.

Step 1: Know your financials

It’s important to have a clear understanding of your finances before you start looking for a home. This will put you in a better position to balance your wants and needs, while ensuring you make good decisions for your financial health. This is the most important area to begin with because it will be the key factor that drives all your decisions to come. There’s a lot to consider when looking at your finances to see if you’re ready to start the process of buying a house in Toronto. It’s one of the biggest investments you’ll make (if not the biggest), and there are a number of factors that can determine if now is the right time to buy:

• Income – Do you have a regular, stable income you can count on to help you qualify (and pay) for a mortgage?
• Career stage – Are you at a point where you’re ready to settle down at the same address for five to seven years? If you’re thinking of moving out of the area or overseas in a year or two to pursue career opportunities, it may not be worth your time and money to lock into a mortgage investment.
• Down payment – How much money have you saved that can be used as a down payment? Here’s a closer look at the minimum down payment requirements you can expect:

Purchase Price	Minimum Down Payment
$500,000 or less	5%
$500,000 to $999,9999	5% of the first $500,000 + 10% of the portion above $500,000
$1 million+	20%

Your down payment can also be affected by the type of property you’re purchasing, its price, and the lender’s requirements (e.g. if you’re self-employed or have poor credit, they may ask for more than the minimum).

• Existing debt – Do you have a lot of debt to repay? Is it a high percentage compared to what you currently have in assets, investments, and savings?
• Credit score – If your credit score is high, it could result in a better interest rate for your mortgage. But, if it’s low, it could be detrimental to the amount you’re pre-approved for. If you’re not sure what your credit score is, there are a variety of tools available to perform soft inquiries (which will not affect your credit score by running it). What is a good credit score in Ontario? Scores between 660 and 724 are considered good, 725 to 759 are very good, and 760 and up are excellent. These are only guidelines, of course, because there is no specific number that will guarantee you better rates or terms.
• Level of affordability – The Toronto housing market has seasonal highs and lows. So your best bet is to speak with a real estate agent who has a pulse on the local market and can guide you accordingly.

PRO TIPS

✔ Pay off as much debt as you can before starting the buying process.

✔ Maintain good credit by always making your payments on time.

✔ Don’t buy anything expensive until after your house deal closes.

Step 2: Get pre-approved and financially focused

Two questions you should always ask during the home-buying process are “How much can I afford to spend?” followed by “How much debt can I afford to take on?” Your lender will help you answer these questions as you go through the mortgage pre-approval process.

What are the benefits of a pre-approved mortgage?

A mortgage pre-approval is an important step in the home-buying process. Getting pre-approved has several benefits:

• You know exactly how much you can afford, based on what your lender will give you
• You save time by only looking at real estate listings relevant to your price range
• You can immediately put in an offer on a home, so you don’t miss your chance to bid
• You have the ability to act quickly (which is key in Toronto’s competitive market)
• You eliminate the risk and uncertainty of financing (i.e. there’s less chance of a deal falling through for you or the seller)
• You may have some bargaining power, because the pre-approved amount might motivate the seller to negotiate if it’s likely the sale will happen

Key factors your lender might consider for your pre-approval

There are several factors your lender might take into consideration for your pre-approval. These are your income (consistent amounts received regularly), how much you owe (your income-to-debt ratio), and your credit score (your track record for repaying debt).

To see if you qualify for a mortgage and the amount you’d be pre-approved for, the lender will need you to complete and sign a mortgage application. They may also require you to provide some supporting financial documentation.

Since each lender has different proof requirements, it’s best to organize as much as you can in advance. This helps you expedite the approval process by being prepared for whatever they request. Here’s a checklist of documents you might need to submit for your pre-approval.

How do you decide on a lender/mortgage provider?

Like any large investment, you’ll want to research who can give you the best terms, interest rate, and value for the amount you’re going to finance. You could consider going to a mortgage broker, your bank, or other lenders. Here’s what you need to know about each of those options:

1. A mortgage broker – Using a mortgage broker has several advantages. They might have access to special rates, and could save you thousands on interest. They are also extremely knowledgeable, and can give you unbiased advice based on your needs because they don’t work for a single lender. This could save you a lot of time and money!
2. Your bank – Your bank may offer you a more competitive interest rate if you have a good relationship with them, are a long-time customer, and/or have several investments and savings accounts with them. This is because they will want you to grow your business with them.
3. Other lenders – Talk with your friends and family about their mortgage experiences, and you may uncover some lenders you might never have considered before.

If you have coverage with an insurance company that also offers lending services (e.g. Canada Life; formerly London Life), it could lead to a lower interest rate if you add a mortgage to your portfolio with them.

Once you’re pre-approved, you’ll receive a letter from the lender outlining the terms of your mortgage offer. These will include an interest rate guarantee for a set period of time.

PRO TIPS

✔ Since most pre-approved mortgages expire within 90 to 120 days, you’ll want to start shopping right away. You don’t want to run out of time in case it takes longer than expected to find the house you love.

✔ To find a mortgage broker with added credibility and proficiency, look for an AMP (Accredited Mortgage Professional) designation. Your real estate agent can also help you find someone trustworthy whom they’ve worked with before.

Step 3: Establish a budget of estimated costs

To ensure your budget portrays an accurate picture of what everything will cost, you’ll want to include all the financial requirements to buy a house in Toronto. Those go beyond just the purchase price and down payment, and may include:

• Deposit: Within 24 hours of your offer being accepted, you will need to send a certified cheque to the seller’s agent. The amount is usually 5% or more of the purchase price.
• Real estate lawyer fees: The real estate lawyer takes care of reviewing the purchase agreement, arranging for title insurance, registering your mortgage, and all the other details necessary to complete the transaction. The attorney fees typically range from $700 to $2,000.
• Ontario land transfer tax: This fee occurs when a home and property purchase closes and goes to the province. The transfer fee ranges from 0.5 to 2.5% of the purchase price.
• Toronto land transfer tax: This tax is calculated when a home and property purchase closes in specific areas of Toronto. These include south of Steeles Avenue, east of Etobicoke, west of Scarborough, and north of Lake Ontario. The transfer fee ranges from 0.5 to 2.5% of the purchase price.
• Home inspection: A professional home inspector will examine the home you’re interested in buying. They will conduct a thorough inspection of the property (both inside and out), and provide you with a comprehensive report. The home inspection cost ranges from $500 to $1,000+, depending on the size of the property.
• Land survey fee: Before approving your mortgage, your lender may request a current survey or certificate of the property. If a new survey needs to be done, this can be a substantial expense ranging from $1500 to $2500!
• Mortgage default insurance: If you can’t afford a 20% down payment based on the purchase price of the house you were contemplating, any loan you get will be considered high ratio (i.e. high loan to home value). That means it will require mortgage default insurance through the Canadian Mortgage and Housing Corporation (CMHC).
• Home insurance: You will need to arrange residential property insurance to cover the replacement value of the new house and its contents. This will be needed from the day you take ownership, and your lender will require proof of it. This cost can range from $700$ to $2000+ annually.

Other than the costs mentioned above, you might also want to budget for other additional expenses. These could include appraisal fees, mortgage broker fees, and mortgage protection insurance.

PRO TIPS

✔ Just because you’re pre-approved for a certain loan amount doesn’t mean you have to spend all of it.

✔ Balance your budget to meet ALL your goals (owning your home, taking an annual vacation, saving for retirement or education, etc.).

✔ Don’t put yourself in a position where you have a house, but no money to furnish, upgrade or take care of it.

Step 4: Find a realtor

While you’re in the process of getting your pre-approval, you can also start looking for a realtor. This will help you to be ready to start house-hunting as soon as your financing comes through.

To get started, chat with your family and friends about any experiences they’ve had with agents, or anyone they’d recommend. Knowing who good realtors are is just as important as knowing who to avoid.

Next, make a short list of agents you’d like to interview, either from referrals or online research you’ve done yourself. Reach out to them to see if their personality matches your wants/needs, and if you ‘click’ with them.

Here are some questions to ask your realtor:

• Do you actively work in this neighbourhood?
• Do you have a network of sellers in the area that I am looking in?
• How do you plan on adding value to my real estate search?
• How have you helped a past client make a smart real estate or financial decision?

Here are a few key qualifications to look for in an agent:

• Outstanding local market knowledge: Choose a realtor who is familiar with TO neighborhoods, and specializes in the type of home you are looking to buy.
• Good reviews or testimonials: Make sure they have a proven track record and repeat clients. Conducting an Internet search of your realtor’s name is a great way to find this information, along with other insights about them.
• Excellent financial knowledge: They must be able to crunch numbers to give you a good understanding of your options and their financial impacts.
• Great communication & client service skills: They should understand your housing goals, and communicate in a way you understand and feel comfortable. One of their top priorities should be excellent client service that’s demonstrated through responsiveness, showing up on time, and being prepared.
• Network connections: Effective and successful realtors rely on their relationships, so they should have a good reputation in the industry for working well with other agents. This will help them better support your search (and possible negotiations) for a home.

Buying a house in Toronto can be challenging, intimidating, and time-consuming. So it’s important to find a realtor you feel comfortable working with.  You need an attentive partner you can trust and rely on for the process you’re about to endure ahead!

Step 5: Knowing what you want in your home

Now that you have your finances and budget, a pre-approved mortgage, and a great real estate agent together, it’s time to get ready to shop!

To help your real estate agent match your needs to available listings, you should:

Create a checklist of ‘must-haves’ for your new home

• Is your family growing, getting smaller, or staying the same?
• How long do you plan on living in this property?
• Are you looking for a detached home, row/townhouse, or condo?
• How many storeys and square feet? How many bedrooms and bathrooms?
• Do you need a room for a home office?
• Do you want an open concept, finished basement, or front/back yard?
• What size of garage? How many parking spaces? Do you need a condo locker?
• Do you want to be near a green space (to walk your pet), a school zone, daycare facilities, public transportation, markets, restaurants, waterfront, local shops or big-box retailers?

Create a list of ‘nice to haves’

• Would you love to have a pool, jacuzzi, or smart home capabilities?
• What about a master bedroom with an ensuite bathroom?
• How about a kitchen island/breakfast bar and main floor (or in-unit) laundry?
• Would granite or marble kitchen counters (with a farm-style, dual, or triple sink), plus a wine fridge, make you happy?

Create a list of ‘deal breakers’

• You don’t want to be close to busy main streets
• You’re not interested if the house needs multiple and/or expensive renovations
• You don’t want anything noisy near train tracks or an airport

Create a prioritized list of neighbourhoods

• Review the demographic profiles of core Toronto areas; this will help you build a list
• Talk with friends/family who live in Toronto and your real estate agent to learn about locations you might not have considered before
• If you don’t have the budget to purchase a house in downtown Toronto, one in an ‘up and coming’ outlying neighbourhood may offer better value now with a higher return over time
• If you’re interested in condo living, certain neighbourhoods have started showing higher condo appreciation rates than others

PRO TIPS

✔ Defining your wants/needs ahead of shopping for a home will ensure your agent can find you the perfect one to suit your lifestyle.

✔ To save time and create an easy purchase path, connect your agent with your lender so they can freely communicate and collaborate.

Step 6: Shopping for your home

This is what you’ve been waiting for! The excitement of finding the new address you will call home. This next set of steps to buying a house in Toronto includes:

1. Browse listings from your realtor

Review all the listings your agent sends you, and try not to judge a book by its cover. If the listings you’re receiving are not meeting your expectations, or if some of your criteria have changed, let your agent know immediately. They will modify the property lists they’re sending you.  Also, bookmark the online listings you’re interested in so you can easily refer back to them later.

2. Schedule a showing or visit an open house

If there’s a property you wish to view, let your agent know the dates and times you’re available to do so immediately. This will help them make an appointment for you as soon as possible. It’s important to move quickly on a listing you’re interested in, because the Toronto market is very competitive due to lack of inventory. In addition, ALWAYS schedule to visit houses alongside your real estate agent. They are the best representative and advocate for YOUR needs with the seller’s agent.

To get a sense of how many potential buyers have been through a home, look at the number of business cards that have been left behind by agents when you arrive at a showing.

Also, remember that your agent is professionally trained to assess what houses are worth based on their condition. So they will be able to bring any areas of concern to your attention while you’re touring. This will help you align your offer accordingly, should you wish to make one.

3. Take notes

Bring a notebook to property viewings, and include your “must-haves” checklist in it for reference. Take notes about everything you liked and disliked (after touring 10 or 20 properties, you’ll be thankful you did!).

Also, if you are given permission beforehand (and it’s good etiquette to ask), take plenty of pictures so you have visual cues for things you liked or didn’t.

Provide your agent with ANY positive and/or negative feedback regarding your visits, as it can be very helpful in their search to find exactly what you’re looking for.

Step 7: Making an offer

So you’ve finally found a home you’re excited about and are ready to make an offer. This is where your agent’s knowledge of the market, your competition, and the fair property value within the neighbourhood comes into play. Work with your agent to develop a strategy to balance getting the most from your offer and the best chance of it being accepted.

Given Toronto’s fiercely-competitive real estate landscape and ‘seller’s market’, you may have to go in with a condition-free offer.

Again, your agent can provide guidance on just how much you’ll have to give for a seat at the bargaining table.

Before you make an offer, you may wish to request copies of the water and hydro bills to get a general idea of what to expect for monthly utility expenses.

The process of making an offer begins with your agent preparing an Agreement of Purchase and Sale (APS). This is a legally binding document that includes the following:

• The purchase price you’re offering
• The amount of your deposit
• Your desired closing date (i.e. when you would like to take possession of the home)
• Any inclusions you would like (e.g. TV, water filter system, appliances)
• Any conditions before the deal can go through (e.g. home inspection, financing conditions)
• Your signature on the offer, and any additional documents

Once your APS is complete, it will likely be submitted through an offer presentation (as opposed to a non-offer presentation) to the seller. This has become the new normal in Toronto, given the competitive landscape of high housing demand and low available inventory. The trick is for your agent to know exactly how to navigate these situations with less stress while still achieving your ultimate goal! Here’s what you need to know about these two types of presentations.

Offer presentation

 

An offer presentation occurs when a seller sets a date and time by which all purchase offers on their house must be submitted. This strategy is very beneficial to the seller because all offers are considered at once, rather than trickling in over a few days. This boosts competition for the sale, and typically generates a higher selling price. It also saves time for the seller and listing agent because by assessing the options simultaneously, they know they’re not settling for one offer when a better one could still be coming.

Once all the offers have been submitted, the listing agent may decide to review them by email. They may also (or instead) invite your agent to an in-person presentation of the APS on your behalf. This meeting can occur anytime at the property address or real estate brokerage, and may include the seller(s) and their lawyer(s) or family.

An offer presentation is your agent’s chance to establish a rapport with the listing realtor and seller. At the same time, they can ‘pitch’ your offer to successfully position it over others. They will emphasize the points of your offer (such as price, closing date, deposit amount, conditions, and other details) to maximize your competitive leverage.

Non-offer presentation

Non-offer presentations are part of how real estate is traditionally sold. When a property comes onto the market and meets your needs, you submit an offer and then negotiate with the seller. Although this seems easier and less stressful than competing in an offer presentation, you need to ensure your realtor is providing you with the proper market information so you can avoid overpaying. Most sellers in this situation will list the home for more than it is worth to try to get the best price possible. This is when your agent should complete a CMA (comparative market analysis) so you can determine a fair value for the house before you begin negotiations. This will go a long way towards helping you end up at a price point you’re happy with.

Once your offer has been made through an offer or non-offer presentation, the seller can reject it, accept it, or come back with a counteroffer. If there’re back-and-forth negotiations, the process can sometimes be stressful, overwhelming, and frustrating. A great agent will help you focus on the numbers (rather than emotions), add perspective, and guide you through small compromises to get what you want.

PRO TIPS

✔ Be ready to lose one, two, or a few offers. No matter how long a property has been on the market, it will usually receive multiple offers.

✔ Remember, “It’s not over until it’s over.” You might lose out on a house, only to find out the winning deal fell through and the property is available again.

Step 8: Getting ready to call your new home, home

Your offer has been accepted! Congratulations! Now what?

1. Send the deposit within 24 hours to the seller’s agent.
2. Arrange for a home inspection with a reputable and thorough service provider. When you receive the home inspection report, be sure to review the disclosures with your agent. If work needs to be done on the property, strategize with your agent to submit a request for repairs.
3. If you’re going to make any additions or construction to the property (such as adding a pool or a guest house), check with the city’s building department to ensure the zoning allows for the upgrades.
4. Create a list of renovations you’d like to do once you take possession of the house. Also start budgeting for renovation costs and looking for companies to help you do the actual work.
5. Provide your realtor with the contact information for your lawyer and lender so they can get these two people everything they need to finish the deal.
6. Make arrangements for homeowner insurance. If you have residential property insurance for your current home, contact your insurance broker or provider to request an estimate for a policy based on your new address. Also, discuss any coverage changes or other needs you require. If you have auto insurance but no home insurance, reach out to your provider to see if they offer residential property coverage and discounts for bundling your home and auto insurance together under one policy. If you’re not sure who to contact for home insurance, ask your family, friends, loan provider, or real estate agent for referrals. You may even be able to take advantage of additional home insurance discounts offered through your post-secondary alumni association, union, or CAA membership.
7. Coordinate your change of address, set up utilities, find out when garbage day is, book movers and cleaners, and pay any required deposits.

Step 9: The home stretch

Now it’s time to finalize financing with your lender. The lender will order an appraisal on the home to verify that the market value supports the purchase price.

When you receive the final mortgage agreement for sign-off, double-check that your interest rates, payment amount, payment frequency, and other terms you agreed upon with your lender match the loan arrangements outlined in your pre-approval letter.

The next step is to do a final walkthrough of the home. This is an important step, as it allows you and your agent to double-check that it’s in the condition the seller promised to leave it in. You can also make sure that everything you agreed upon in your offer is present in the house.

You’ll also need to ensure any repairs agreed upon in the transaction were completed. If the improvements are difficult to visually inspect, call back your home inspector or a specialist to ensure they were completed correctly.

PRO TIPS

✔ Turn on all lights, exhaust fans, and appliances to make sure they still work

✔ Open and close doors (including the garage), and inspect ceilings, walls, and floors

✔ Flush toilets, check for leaks under sinks, make sure you have running water, and test the heating/cooling

Step 10: Closing an offer

To close the deal, you will meet with your lawyer to review and sign the final legal documents. Be sure to bring along identification and any additional payment you may need to provide. Once all the financial and legal requirements have been met, possession and ownership transfer from the seller to you, and the house is yours!

The lawyer will give you copies of the final paperwork for your records. Be sure to keep them in a safe place for future reference.

Move in and celebrate!

You made it! All that’s left is to meet up with your real estate agent to get the keys to your new home, and then start your move-in process (and celebrate that you now own a new home)!

Once you take possession of the house, be sure to do the following:

• Change the locks to ensure you’re the only one who has keys
• Change the alarm code (if applicable)
• Change the garage access keypad code (if applicable)
• Forward the mail from your old address to your new one
• Call those who are still sending mail to your old address and ask them to update their records
• Change your address on all your identification cards and other areas it’s used

Moving is a lot of work, so use helpful checklists to keep you on track and organized from 8 weeks in advance of the move to two weeks post-move. They will be sure to make your transition easier and less stressful.

Ready to get started with the process of buying a house?

Make your next purchase the best one you’ve ever made by choosing a great realtor! Any agent with a set of keys can open a door for you; it’s the exceptional client experience and expertise you receive that makes all the difference.

As an industry leader, Matthew Gravina Real Estate does not operate with a “one size fits all” mentality. Every person and every home is different. We take the time to get to know you, so we can custom-tailor a buying strategy that will deliver the results you’re looking for.

Your dream home could already be on the market. It’s time to go find it!
Call Matthew today at 416.805.2763 to get started!