A House Hunting Guide For Millennials

Where do I even begin?? For the past few weeks my pink nail polishes have been pushed aside and replaced with different shades of interior paint. Not to mention the numerous trips to Home Depot and Ikea instead of fun things like fall outfit planning and shopping. Also, zero time for Instagram and social. I mentioned earlier that we decided to move and with that came a strenuous house hunt. I say strenuous because the Toronto housing market is absolutely brutal right now. And seeing as how millennials account for about 36% of home buyers in today’s market this post aims to be a house hunting guide for millennials.

With an active house hunt came the swift kick in the ass forcing us to finish the renovations we started last fall. We did everything from ripping out old carpet, changing floors, painting top to botton, renovating the entire kitchen…the list goes on and on. If you are in a similar situation, best not to procrastinate like we did and finish them right away.

While this is not my first rodeo, no amount of experience could have prepared me for just how drastically Toronto’s housing market changed over the last few years. Although it has calmed down from the chaos it was over a year ago, it’s still quite tough. Especially for first time home buyers. In which case hopefully this post can help guide you a little bit along the way. But first things first…

Find a reliable real estate agent.
Even though nowadays comm free sites are popular I still prefer to work with a realtor. They assist along the way not only to help you find a suitable home but throughout the entire buying/selling process. There are so many caveats to real estate transactions; from obtaining mortgages, determining fair market value, home inspections, surveys, lawyers and closings, the list goes on and on. Not to mention if you’re getting involved with a rural property. Then the list gets even longer and more complicated. A knowledgeable real estate agent is familiar with all aspects of the transaction and will help to guide you throughout the entire process to closing. Worth every penny in my book.

Once you’ve found a real estate agent they will start sending you listings of homes for sale that match your criteria. You can also go on realtor.ca to view properties yourself. Once you’ve gotten an idea of what kind of property interests you, you can begin to gauge the amount of money said property will cost you.

Get A Mortgage Pre-Approval
This is key. Getting a mortgage pre-approval lets you know exactly where you stand with the bank in terms of a mortgage. A mortgage pre-approval will give you an exact dollar figure of what the bank is willing to lend you. This in turn gives you a budget to work with when house hunting. Make sure to understand the financials well before you commit to buy. Typically a 10% downpayment is required for the purchase. A confirmation of employment letter from your employer is also required for the mortgage pre-approval.

Another thing to consider with mortgages is whether to go with a fixed or variable mortgage. With interest rates on the rise we decided to lock in, however that option may not be best for everyone.

Check Real Estate Listings Every Day.
I mean every. single. day. Even twice a day if you can. Moreso if you’re working with a strict budget. The reason I say this is that sometimes properties can sell within hours of being listed. Especially if that type of property is in hot demand in a particular area. There was a house we liked but didn’t even get a chance to look at it because it had sold already. It wasn’t on the market for even two days!

Personally, I was checking listings from my realtor first thing every morning. On top of that I also received real time alerts for properties of most interest to us. The best part was the Realtor app. Within a few days I became obsessed with it. The app allows you to save favourites and search nearby using your location. Which is great if you’re on the road and are curious to know what properties in the area are going for.

Act Fast
If you see a house or condo that interests you don’t wait! Book an appointment to view the property with your realtor as soon as possible. It kept amazing me how many times a property came up for sale and we didn’t get a chance to even look at it because it was sold already. Making life decisions in a couple of hours is not easy. Try to follow your instinct, you’d be surprised at just how good your intuition can be if you let it guide you.

Try To Avoid Bidding Wars
Unless you’ve got a hefty wallet or an amazing pre-approval you might want to avoid bidding wars. They still happen although it’s not as crazy as it was over a year ago. If the seller has requested reviewing all offers in one night (to entice a bidding war) you can always approach them beforehand with your offer. It’s worth a shot – they may just accept it.

In the event you are caught up with multiple parties interested in the same property you might have to be prepared to pay over asking price. Potentially even over your budget. This is a decision you need to make based on your financial situation…and how much you love the property. A great way to gauge if a property is worth paying more is to ask yourself if you will have any regrets the next day if you don’t get the property. If this is potentially your dream home, then just know that in the grand scheme of things an extra $20-30K on a mortgage over a 25 year period doesn’t make that much of a difference on a monthly mortage payment. Sometimes it may be worth going in a little higher to ensure you secure your dream home.

Dress, Lulus. Jacket, Old Navy. Sunglasses c/o Polaroid. Necklace c/o Enclave Gems. 
Be Prepared To Stay Up Late
Sometimes the buying/selling process can take all night once negotiations have started. Grab yourself a latte and maintain a positive attitude while you wait. It might be a bit of a stressful few hours but hopefully it’s fun too. Stay in the company of good friends, family and loved ones for moral support. If negotiations go late into the evening try not to fall asleep as they are time sensitive. The last thing you want is to lose out on a potential deal because you weren’t available to answer a text or phone call and the seller moved to the next highest bidder. Just to give you an idea, for our new home we put the offer in around 5 pm and the deal wasn’t signed until just before midnight that same night. That’s what all the coffee is there for.

Hopefully at this point you have received a sign back on your offer and are on your way to owning your new home. Although sometimes it doesn’t work out the first time around the key is not to get discouraged. Dust yourself off and try again. Worst case you’re in for a couple of sleepless nights but you got this!

Now I probably should quickly mention my outfit. This has got to be the easiest early Fall day to night look ever. Maxi dress with a jean jacket worn overtop in the evening. Because with a crazy house hunt on the go that’s the best I could do. And speaking of which, if you have any questions on the Toronto housing market or just buying/selling a home in general, ask in the comments. I’m no expert on the topic but am more than happy to share what I’ve learned along the way.
xo