Tuesday, November 3, 2015
Wednesday, June 10, 2015
Tuesday, June 9, 2015
Tuesday, April 14, 2015
Are Toronto Homes Being Priced For Bidding Wars?
Buyers are frustrated and so are their real estate agents. I have been a Broker in Toronto for 26 years and I have witnessed many market changes and trends.
Pricing a home was always based on fair market value.How was this established? Recent sales of similar homes, on streets surrounding the property to be listed gave the agent a reasonable price at which to offer the home for sale.
Today, homes in the "hot pockets" of Toronto are often priced $100,000.00 under the fair market value. If in week one a home is priced at $749,000.00 and sells for $850,000, in week two a similar home is priced at $755,000.00 and sells for $860,000. The following week another house is listed and sells in the same price range. These three sales would establish the fair market value. However, the next home to come on the market is once again priced at $760,000.00. This would give Buyers and Agents a clear indication that the home is priced below fair market value. Buyers and Agents have to realize that an offer on the home will go way above the asking price, if there is a multiple offer situation. Multiple offers are common.
Staging the home is now the in vogue. Out with the owner's furniture and family photos, in with the rented white sofas, coffee table books and white silk flowers. All to make the home impersonal, allowing the buyer to envision their own possessions.
Pre-inspection reports are available on most homes now in high demand areas. The Listing Agent emails the report to any Selling Agent that requests it. This saves a great deal of time (cost) for all potential Buyers and intrusion on the Seller. The Buyer must be aware however, that the inspection report is the property of the Seller. In order to have any repercussions against the Inspector if they fail to find something that shows up after they move in, the Buyer must pay for that report independently.
Holding offers off until the following week, usually after the weekend has become standard. Buyers and Agents viewing the home at overlapping times, create pent up buying frenzy. Now the buyer gets anxious to put in an offer, before the offer date (pre-emptive or bully offer). The offer MUST of course be well in excess of the asking price. Sellers have the right to look at the offer, work with it or continue to hold off before the "offer date" or decline to look at it.
Low mortgage rates, high rents and off shore investors all add to the bidding war frenzy. If a home is priced at fair market value, would there be bidding wars? I am often asked if there is there any end in sight. I don't see it in 2015.
Pricing a home was always based on fair market value.How was this established? Recent sales of similar homes, on streets surrounding the property to be listed gave the agent a reasonable price at which to offer the home for sale.
Today, homes in the "hot pockets" of Toronto are often priced $100,000.00 under the fair market value. If in week one a home is priced at $749,000.00 and sells for $850,000, in week two a similar home is priced at $755,000.00 and sells for $860,000. The following week another house is listed and sells in the same price range. These three sales would establish the fair market value. However, the next home to come on the market is once again priced at $760,000.00. This would give Buyers and Agents a clear indication that the home is priced below fair market value. Buyers and Agents have to realize that an offer on the home will go way above the asking price, if there is a multiple offer situation. Multiple offers are common.
Pre-inspection reports are available on most homes now in high demand areas. The Listing Agent emails the report to any Selling Agent that requests it. This saves a great deal of time (cost) for all potential Buyers and intrusion on the Seller. The Buyer must be aware however, that the inspection report is the property of the Seller. In order to have any repercussions against the Inspector if they fail to find something that shows up after they move in, the Buyer must pay for that report independently.
Holding offers off until the following week, usually after the weekend has become standard. Buyers and Agents viewing the home at overlapping times, create pent up buying frenzy. Now the buyer gets anxious to put in an offer, before the offer date (pre-emptive or bully offer). The offer MUST of course be well in excess of the asking price. Sellers have the right to look at the offer, work with it or continue to hold off before the "offer date" or decline to look at it.
Low mortgage rates, high rents and off shore investors all add to the bidding war frenzy. If a home is priced at fair market value, would there be bidding wars? I am often asked if there is there any end in sight. I don't see it in 2015.
Thursday, September 6, 2012
Toronto Home Sale Price Increase 6.5% in August
TORONTO, September 6, 2012 – Greater Toronto Area (GTA) REALTORS® reported 6,418 sales through the Toronto MLS system in August 2012, representing a year-over-decline of almost 12.5 per cent compared to 7,330 sales reported in August 2011. The number of new listings reported in August was down by 5.5 per cent compared to the same period in 2011.
“Residential transactions were down in August compared to last year. Stricter mortgage lending guidelines, which came into effect in July, arguably played a role. In the City of Toronto, the additional impact of relatively higher home prices coupled with the upfront cost associated with the City’s Land Transfer Tax led to a stronger annual decline in sales compared to the rest of the GTA,” said Toronto Real Estate Board (TREB) President Ann Hannah.
The average selling price for August 2012 transactions was $479,095 – up by almost 6.5 per cent compared to August 2011. The annual rate of price growth was driven by the low-rise home segment in the City of Toronto, including single-detached homes with an average annual price increase of 15 per cent. The MLS® Home Price Index (MLS® HPI)* composite index, which allows for an apples-to-apples comparison of benchmark home prices from one year to the next, was up by 6.3 per cent year-over-year.
“While sales were down year-over-year in the GTA, so too were new listings. As a result, market conditions remained quite tight with substantial competition between buyers in the low-rise market segment,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “The trends for sales and new listings are moving somewhat in synch, suggesting that the relationship between sales and listings will continue to promote price growth moving forward.”
Thursday, October 14, 2010
Invisible Bathtub Mat® to Reduce Slips and Falls in Bathtub and Shower
Invisible Bathtub Mat® is all about reducing slips and falls in the bathtub and shower. It is safer and healthier than those unsanitary, unhealthy , germ-infested, mouldy rubber bathmats. Throw them away.
Here is your solution and saves you money. You no longer have to replace rubber mats every few months because Invisible Bathtub Mat® last for years.
It is safe and meets Health Canada Standards.
Watch the video Invisible Bathtub Mat® Video
Great as gifts and for your family
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Invisible Bathtub Mat® Website
Children slips and falls in bathtub-Invisible Bathtub Mat the Solution®
Invisible Bathtub Mat® is all about reducing slips and falls in the bathtub and shower. It is safer and healthier than those unsanitary, unhealthy , germ-infested, mouldy rubber bathmats. Throw them away.
Here is your solution and saves you money. You no longer have to replace rubber mats every few months because Invisible Bathtub Mat® last for years.
It is safe and meets Health Canada Standards.
Watch the video Invisible Bathtub Mat® Video
Great as gifts and for your family
ORDER FROM Invisible Bathtub Mat® -click on the link below, go to Invisible Bathtub Mat® Residential and on the right side of the page click on "BUY NOW"
Invisible Bathtub Mat® Website
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