Realtor Rant: Toronto Real Estate is a Joke!

So, it’s only the end of January and the real estate market has been scorching -- enough to melt the ice and snow! January is considered to be one of the slowest months in real estate and also sometimes considered the best time to buy. But is it really a good time? I doubt it, but I guess it's better now than later!

The title of this post should actually read buyers and buyer agents are a joke, but whatever.

Time and time again, we continue to see prices skyrocketing and bidding wars erupting at every street corner. As excitement rises for the seller, it’s panic mode for the buyer. While some buyers are waiting around with a wad of cash stashed in their socks, other buyers feel a need to possibly dip into their piggy banks.

So where's the joke you ask? Let's get into it. I was involved in a bidding war last night for a starter town house in Whitby. I don't need to provide a market value because any individual with some common sense can easily guesstimate a rough figure.

In the same neighborhood, exactly one week ago, a townhouse was sold for $520,000. The main differences were that the sold property: 

  • was slightly bigger in terms of square footage (approx. 100 sq. ft. bigger), 
  • had some upgrades such as hardwood floors & stainless steel appliances while the one on market was basic.
  • had a finished basement with a 3 pc bathroom while this one was unfinished

We started with a total of 11 offers, coming down to 4 and one ended up being the owner to this severely overpaid property.
My clients were ready to play ball! Deposit draft in hand, firm offer and closing date as preferred by seller and were ready to pay the price.

Did we get it? Nope! Before I get into what the winning bid was, let me reiterate that a similar house sold one week ago for $520K with a finished basement AND upgrades.

It was sold for a whopping $550,000! Now, I'm not pissed nor were my clients that we didn't get it -- however, I am curious to know what the thought process of the other buyer's agent and the buyer were when submitting that offer.

I guess the real loser was the house that sold last week for $520,000. Right? I don't know. I wish buyers and buyer's agents just think about what they are doing before breaking the piggy bank!

***Flings empty sock.*** End rant.

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Realtor Rant: Toronto Real Estate is a Joke! | Theepan Balasubramaniam | 416-317-2986