It is no fun to be a buyer in Toronto’s current housing market. Every day, I look at detached homes and my anxiety increases as I see sold signs going up on houses that never made it to MLS and housing prices increasing with each new sale.

I recently put in an offer on a great bungalow. The house was the perfect size for my current needs and on a great sized lot in my ideal location. The asking price was right in budget, but of course I knew this was simply a starting price.

The owner of this home had prepared a pre-inspection report for the house; as most homeowners now do. I had a contractor friend look over the report and give me a rough estimate on how much the deficiencies would cost to address. I also went for a second viewing of the house with friends and family.

When it came to submitting the offer, I presented a strong offer with no conditions and a generous deposit (in the form of a bank draft). There were 9 other offers.

Although I think the current housing prices are crazy, I also think it’s pretty easy to predict what houses will sell for if you are following the market (and that specific area) closely. So I was not surprised when we were all sent back to increase our offers; and I had a pretty good idea about what number would get me the house.

Where it gets difficult is balancing what number will guarantee you the house and what number might be good enough. I revised my offer to a number that was a stretch for me, but one I could still be comfortable with, and then I resubmitted it. Slowly (very slowly), agents were told that their offers weren’t accepted. About 4 hours after presenting my initial offer, I was told that it was between my offer and someone else’s. The other agent was given a certain amount of time to get to the brokerage with their client’s deposit cheque. In the meantime, I was given the opportunity to increase my offer. I won’t get into the ethics around this or my thoughts around that “opportunity”, but I will tell you the factors I considered:

• Could I stretch myself any further?
• How much did I need/want the house?
• What additional costs would I need to factor in (land transfer, lawyer, the deficiencies in the home inspection report, etc.)

I decided to stay firm with my offer and leave it to fate.

In the end, I didn’t get that house. I was a little disappointed, but a week later, I got a call from someone on the same street saying that they were looking to sell their house privately and would I be interested (ultimately, I didn’t buy that house either, but that’s a post for another time).

Key points:

• Educate yourself on the area and the market
• Be critical about the home inspection
• Be critical when you look around (take notes and ask questions )
• Present a strong offer that you can feel confident about
• Know your limits
• Keep your emotions in check (don’t let the anxiety lead you into making the wrong decision)

Happy Hunting!