January 30, 2017 in Real Estate Blog
The semi detached two storey home in the Woodbine and Danforth area was nothing special, but as they say in our business, “it showed well.” It had two bedrooms, a finished basement, no parking, and it faced the railway tracks, a main line for GO and VIA trains. The asking price was set at $599,000 to attract multiple bids.
My team member Jennifer Scaife, had a client who put in an offer. Jenn was under the impression that she was one of nine offers, which she thought gave her a good chance of winning because her bid was more than $100,000 over asking. However, when she arrived to present the offer, she was told there were 31 offers, yes thirty-one offers in the middle of January! Jenn later said that if she had known there were that many offers, she would never have had her clients go through the exercise.
The house sold for $821,000. Recent sold comparables showed the value to be around the $750,000 mark.
There have been many stories like this all month. I recently listed a stacked townhouse in the Bloor and Lansdowne neighbourhood. The last sale for an identical unit was $462,500 this past summer so we brought ours onto the market at $469,000. In one week we had an incredible 55 showings, plus another 25 groups of people through our two weekend open houses. On offer night seven potential buyers put in bids for the unit and it sold for $564,000. That’s $101,500 more than what the exact same unit sold for just six months earlier!
I have two different conversations or words of advice:
If you’re thinking of selling (and not buying again in the Toronto market), the time is now. There’s very little inventory and the chances of you cashing in big are very high.
On the other hand, if you’re trying to buy a property, be patient. Don’t get caught up in the hype, and stick to your budget. By the time March rolls around, the spring market will be in full swing and there will be many more houses on the market from which to choose. You may still have to compete against a few other potential buyers, but you won’t be up against 30 other offers, like Jenn’s clients.
Feel free to get in touch with me and we can chat about the best way for you to benefit in this market.