Are Buyers Paying Too Much in House Bidding Wars? I Don’t Think So.

If you read the headlines of homes selling for more than $200,000 over the asking price, the first reaction is usually yes.  But I disagree.  If you do your homework and search the sold statistics for the street and neighbourhood, in most cases you’ll see that the buyers paid market value.

In today’s Toronto Star article (the link is at the end of this blog entry), there’s a home in Roncesvalles listed at $649,000 which is expected to sell for $800,000.  It’s a detached 5 bedroom home that needs a total gut job.  The article says the total cost to renovate will be about $400,000.  That estimate is a bit high, but even it does cost that much, it will bring the value of the property up to $1.2 million.

MLS stats show that a totally renovated home on the same street, a detached 2.5 storey house on the same sized lot, sold for $1,450,000 within the last year.  So $800,000 for the dilapidated house is about right.

We’ve also seen a couple of other homes in Riverdale sell for $200,000 over the asking price this week.  Both are detached three-storey homes that need total renovations as well.  Again, if these properties were to make headlines in the newspaper, people would be shocked.  But the reality is, the houses sold for the right price.

Underpricing is just a marketing strategy, and in my humble opinion, works well with estate sales and homes that need total renovations. For the most part, regardless of the listing price, homes sell for what they’re worth.

Here’s today’s Star article on the Roncesvalles home.  http://www.thestar.com/business/real_estate/2014/01/28/roncesvalles_house_is_among_the_best_and_worst_on_market.html

For Sale: A laneway to nowhere $90,000

This story was written by Kris Rushowy of The Toronto Star, who was kind enough to interview me and ask for my opinion.  This laneway is located beside 211 Lee Avenue, near Norway.  It currently allows three neighbours on Lee Avenue access to parking behind their homes.

The laneway is owned by the Toronto District School Board, and at one time it used to run straight into the rear of Williamson Road Public School.

The TDSB has no use for it and has offered to sell it to the neighbours.  In my opinion, the neighbours shouldn’t waste their money to buy it or even take it if it’s offered for free.  All it’s going to do is cost them money, and as I said in the article, whoever owns it is responsible to maintain it, and the neighbours will always have the use of the laneway. That’s because the homes have been using the laneway for decades and based on the law, the use cannot be taken away from them, regardless of who owns the laneway.

Check out the article:  http://www.thestar.com/yourtoronto/education/2014/01/22/for_sale_one_laneway_leading_nowhere.html

 

A Condo High in the Skyy

This is a great alternative to the Beaches or any downtown condo that faces another towering condo building.

Luxury 2,000 square foot penthouse condo perched high in the sky with amazing breathtaking panoramic views of Lake Ontario, city skyline and Don Valley. This is truly a fantastic unit in Minto Skyy at Broadview and Pottery Road.  There are only three units like this in the whole building.

Asking $1,249,000.

Take a virtual tour and spread the word: http://1048broadview2501.blogspot.ca/