03 Jun 2016
Ya, but how much will it sell for? More. Way More.
Oh Buyers – we’re so so sorry. Buying in Toronto is HARD! You’re bidding on properties and you’re losing. Then you get all fed up and go way over the top on the next one and the cycle continues.
I’ll have to apologize for the way some properties are being priced. For example, without getting into specifics, there was a property listed today for $730K on one of the most popular streets East of the DVP. This fully renovated 3 bedroom 2 bath home has no business selling for anywhere near that price so again, we’re sorry that you’re going to see this place and get your hopes up. You’re going to wake up, call your agent they’re going to break the news to you (if they’re good at their job anyway). Local comparables suggest a sale price closer to a million dollars.
How do we stop this from happening?
We need to transition to a more transparent system. If you’ve ever brought a buyer to one of my listings you know what I mean. I’m one of the few that doesn’t waste peoples time during these presentations. The Toronto Real Estate scene needs a big overhaul and this market should spark some innovation and pressure on the governing bodies to act. Transparency is all we’re asking for. What does that look like? Open bidding, full disclosures would be a nice start.
Now I’m sure you’re going to ask: “Hey Ara, didn’t you just list this place for $800K and sell it for $1mm?…what gives?” Yes, you’re right, but here’s the difference: A home in the same complex with the same specs sold for $801K so yes, we’re guilty of under-pricing by one thousand dollars (although we staged ours to look amazing)…not two hundred thousand. The Buyer made a decision to go way over the top because they were likely fed up by losing so much. It’s going to happen sometimes but less often when homes are priced property at the beginning.
How do we stop this madness? Ask yourself why you’re buying. Are you Buying now because you’re having a serious case of FOMO (that’s “fear of missing out” for those out of touch with that youth slang) step out of the market right now. You’re adding fuel to the fire. All of you other Buyers that NEED to move: Be patient. You’ll find the right one at the right price. I know you’ve made a ton of compromises already but you’re so close so keep at it. If you still need some guidance or need a loyal, local expert to step in…call us.
